Downtown Grand Hotel and Casino, a newly renovated urban resort located in the heart of downtown Las Vegas, has bolstered its revenue management processes and profitability through the successful implementation of The Rainmaker Group’s guestrev solution. Downtown Grand recently deployed guestrev to more accurately and strategically set rates and pricing for various guest and player segments, by analyzing total guest value to the property.
Guestrev is built on Rainmaker’s total guest valuation methodology, that analyzes guest spend for the entire property or enterprise, including room, gaming, entertainment, F&B, spa, retail, etc. guestrev ensures that room rates reflect not just a guest’s expected room revenue, but also the total profitability of each guest segment, including various player levels in the casino. Sophisticated optimization algorithms factor-in both revenues and costs, resulting in top- and bottom-line growth and rapid return on investment after implementation.
When the Downtown Grand’s revenue-management team first began the process of selecting a revenue management technology provider, they focused on finding an all-encompassing solution that would not only aid in yielding rates, but one that could also easily integrate with the property’s existing casino management system and PMS. This was a major focus for the property, as its primary need was to implement a solution that could integrate data from both systems to provide a comprehensive view and understanding of guest value, by segment and individual spend.
“Originally, we were using manual revenue management and pricing strategies, which proved to be tedious and time consuming,” said Alex Kadota, director of revenue management at Downtown Grand. “The ability to implement price changes effectively comes from having a deep understanding of the market. We needed to gain a clear view into the science behind yielding and this called for a system that could help us lay out all of the varying, multidimensional sets of data, to allow us to understand them on a deeper level.”
Since its initial implementation in Q1 2017, guestrev has already proven effective in helping the Downtown Grand team identify the specific revenue management strategy and pricing challenges that needed to be addressed. In addition to immediately increasing overall property profitability, the solution has also generated cost savings by reducing on the time it takes to analyze multiple data streams, including data that shows where guests are spending their money. This allows properties such as Downtown Grand to create pricing strategies specifically targeted to certain guest segments and based on total guest value.