Want to know why casino hotels should do away with old-school thinking of filling up as many rooms with the highest price as possible? Because revenue per available room (RevPAR) is being trumped by the more forward-thinking revenue per available guest (RevPAG).
Consider findings revealed in the Economic Impact of the U.S. Hotel Industry U.S. report from the American Hotel & Lodging Association (AHLA) and Oxford Economics. This 2023 report shows for every $100 spent on lodging, hotel guests spend another $220 during their trip. This includes food and beverages, transportation, recreation, gaming, retail and more. To maximize total profitability, hotels need to adopt an open pricing methodology, which enables rates to adapt to market demand. Dynamically pricing guests in real-time based on demand enables properties to be more strategic as to whom they give a discounted room or compensated meal.
READ THE FULL ARTICLE BY FRANK PITSIKALIS AND DARREN KOCH IN THE 2024 SPRING EDITION OF GAMING & LEISURE MAGAZINE.