Session Title

Session 3-3-E: Marketing and Consumer Behavior

Presentation Type

Paper Presentation

Location

Park MGM, Las Vegas, NV

Start Date

25-5-2023 1:30 PM

End Date

25-5-2023 3:00 PM

Disciplines

Gaming and Casino Operations Management

Abstract

The strategic mission by Las Vegas casino operators to capture customer loyalty over the past decade has been a success. In 2021, 57% of visitors were generally loyal to a particular resort, compared to 32% in 2011. Only 7% of visitors were not a member of any rewards program in 2021, compared to 16% in 2011.

This has consequences for new market entrants who face a greater challenge to capture customers in a more mature, consolodated and strategic business environment.

Moreover, the drivers of loyalty remain different within the various customer segments, with the new generation of visitors responding less to traditional “transactional” methods of loyalty seen in traditional rewards programs.

For resorts that are new to market, or have an existing footprint, this research provides a guide to future relevance in a competitive environment, as the path to obsolescence is visible to even the most notable icons.

Keywords

Loyalty, Strategy, Casino, Las Vegas

Author Bios

Oliver Lovat BA MSc MBA FRICS

Oliver is an expert in customer-facing real estate, previously serving as faculty at City, University of London Business School and The University College of Estate Management.

He has spent the past 25 years in investment, development, finance and strategy, recently developing and implementing strategies for retail, gaming and hospitality environments.

Funding Sources

Self Funded

Competing Interests

Author has had periodic consultancy engagements with some of the parties mentioned, on unrelated matters.

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May 25th, 1:30 PM May 25th, 3:00 PM

The Las Vegas Loyalty Battle Is Over. What’s Next?

Park MGM, Las Vegas, NV

The strategic mission by Las Vegas casino operators to capture customer loyalty over the past decade has been a success. In 2021, 57% of visitors were generally loyal to a particular resort, compared to 32% in 2011. Only 7% of visitors were not a member of any rewards program in 2021, compared to 16% in 2011.

This has consequences for new market entrants who face a greater challenge to capture customers in a more mature, consolodated and strategic business environment.

Moreover, the drivers of loyalty remain different within the various customer segments, with the new generation of visitors responding less to traditional “transactional” methods of loyalty seen in traditional rewards programs.

For resorts that are new to market, or have an existing footprint, this research provides a guide to future relevance in a competitive environment, as the path to obsolescence is visible to even the most notable icons.