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Absence makes the heart grow fonder....

Discussion in 'Comps' started by BeeeJay, Oct 3, 2012.

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  1. BeeeJay

    BeeeJay President of The Red Lobster Hostess Satisfaction

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    I believe most of the larger casino companies' comp formulas contain somewhere in the algorithm a characteristic which rewards NOT visiting too frequently by increasing offers for guests who haven't visited for some time while reducing offers for regular visitors.

    I think logically this makes sense as they need not offer as much to someone who is returning regularly anyway, but they may want to send out a "teaser" to a past good customer who hasn't been in a while.

    The specific offer which I noticed today and caused me to think about this was from Palazzo:

    "2011 October RECAP Offer"

    "We've missed you, but that doesn't mean you need to miss out on an incredible vacation"


    It goes on to offer standard 3 comp nights, freeplay, gift, etc. I think the RECAP may stand for "Recapture" as in recapture a past customer lost to comp cutbacks.

    I have also seen similar offer increases from Wynn and Cosmo after over a year not staying at either. I'll be quite interested to see how or if MGM or CET algorithms "chase" past lost play.

    Anyway I think for me this may be a useful strategy to rotate play on maybe an 18-month basis. Specifically I would want to avoid playing much (and not use players card for minimal play) at MGM/CET for a year to see if I get caught in their "recapture" bucket for an increased offer.
     
  2. mike_m235

    mike_m235 Tourist

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    I do think it's cyclical. And BeeJay, I know you and I have disagreed on some things, but I'd like your opinion on something.

    How final is final? For example, say you swear off MGM properties because you don't like how they are treating you. 6 months from now you get an offer from MGM that blows away anything else you have. Are you going back?

    Because I think casinos kind of think that you are. I think they are willing to experiment with lower comps to see how it works out, because they know that in the end, the real players want to come back and are only one offer away.
     
  3. JosieCat

    JosieCat VIP Whale

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    This was very definitely proved to me by my local casino. Each month they send out a flier, showing your weekly free play amount. Our is just stuck at $65 a week. It will go down, but never seems to go up. I stayed away from that casino for 6 months last year. After a few months it went up to $90, then $120, then $150, then $300 a week. As soon as I went back - it immediately went back down to $65.

    I am starting a new "stay-away" period this month.
     
  4. luvvp

    luvvp Tourist

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    I've had the same experience but I bit at $80 a week. Starting this month it went down to $20, huh?
     
  5. Nevyn

    Nevyn VIP Whale

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    It really makes perfect sense. For a good bottom line, a casino wants to spend the least it can on you to get your continued business. If they are just routinely generous with comps, they may have great retention, but give away a lot of margin.

    So I think they all try to give a minimal amount for starters, then focus the extra love on the "squeaky wheels" they are at risk of losing.

    That's actually fairly standard operating for big businesses. I know in Canada the best deals you can get from a cell or tv or internet provider are either the promo packages (new business), or from the retention department (when you call up to cancel).

    Likewise, I think you get the best from Vegas when they are trying to lure you in (teaser rates for new players), and when they think they have lost you.
     
  6. mike_m235

    mike_m235 Tourist

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    That's a great point Nevyn. I called up to cancel a credit card, and they immediately offered me a better rate. And direct TV is actually proactive...when they know your contract is coming to a close, they call and offer you something to re-sign.
     
  7. BeeeJay

    BeeeJay President of The Red Lobster Hostess Satisfaction

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    lets say im dating a hot chick and she stops putting out so I dump here for a slightly less attractive who---er. Then im drunk one night at the bar and run into said Ex who invites me back to her place....

    ....based on past experience and knowing myself......

    I'm waking up in trouble that next morning.:evillaugh
     
  8. JNCVH

    JNCVH Tourist

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    But based on the drinking level you wake up with what you thought was the "Ex" and it turns out it was a dude with long hair and big breasts... and no not from possible past experience Beejay!:vomit:
     
  9. Reed

    Reed High-Roller

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    :clap:That was a fantastic analogy!
     
  10. shiny

    shiny Low-Roller

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    Really funny! :wink2:
     
  11. Funkhouser

    Funkhouser In Charge of the Big Door

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    Well I can't speak for your Palazzo play, but in regards to CET, You will probally see the penalty effect of your Yearly ADT calculation falling off. Lets not forget that rousing TR from the great race to rewads last year that earned you 1 point per prop. So my bet is your CET Winter offers will bounce up. I average 4 to 5 visits a year, and this does not seem to effect the endless stream of tournament, free show tickets, or room comps that roll in every month for Vegas.

    Now I just experienced a reseting so to say for CET Vegas properties where I was getting killer offers last year up to OCT 11, and my play has not changed very much. I attribute this to the Race for Rewards dropping out of my CET yrly ADT calculations.

    Who understands total rewards? This could be seasonal as well, but typical room offers are now seeing added free play, better event tickets, and some additional tournament re-buys comp'd.

    It makes me curious to what I could get if I hit Seven Stars. To quote MC - "Just as I was about to get out, they pull me back in..." I am going to have to rethink my play during my October trip. The D, TI, and Plaza just put me on their radar and I was set to throw them my business for two trips in 13, but if the CET comps stay this good for next two quarters, Ill keep my play there.
     
  12. BeeeJay

    BeeeJay President of The Red Lobster Hostess Satisfaction

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    plus on Oct 2nd CET CEO Gary Loveman told a group of Wall Street gaming industry analysts that all the major operators on the strip had decreased promotional expense.

    Comps all over the strip are going to suffer. I feel lucky I've got my next two trips covered. After that I expect I'll be forwarding my paychecks to the very well positioned Derrick Stevens.
     
  13. JillyFromPhilly

    JillyFromPhilly Tourist

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    Remember, you heard it from me first! :poke: LOL
     
  14. mike_m235

    mike_m235 Tourist

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    Remember who Loveman was talking to. Analysts really want to hear how a company is cutting expenses. For example, when a company announces layoffs, a lot of time that stock price goes up, because they are cutting expenses and expecting the same revenue. It's kind of counterintuitive.
     
  15. BeeeJay

    BeeeJay President of The Red Lobster Hostess Satisfaction

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    being a waiter at the Times Square Red Lobster I get to overhear a lot of interesting financial information from those working nearby. Maybe if Vegas keeps going bad I'll open a brokerage account and hit you up for some tips:beer:
     
    Last edited: Oct 5, 2012
  16. mike_m235

    mike_m235 Tourist

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    I'm sure you do overhear a lot -- that would be cool. Mostly from guys who have a different style than me (I'm more of a value guy than a growth guy, which is 'not cool' but it works for me.)
     
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