1. Welcome to VegasMessageBoard
    It appears you are visiting our community as a guest.
    In order to view full-size images, participate in discussions, vote in polls, etc, you will need to Log in or Register.

PGP (Very interesting)

Discussion in 'Comps' started by Packer, Aug 5, 2015.

Thread Status:
Not open for further replies.
  1. Packer

    Packer VIP Whale

    Joined:
    Mar 2, 2014
    Messages:
    4,383
    Trips to Las Vegas:
    149
    As I always do I contacted my host at Aria who is high on the totem pole so there would be no issues upon my arrival on the 19th. (you all should do the same) Apparently there is now a new internal program going on with MGM... There has never been an issue with me not playing but I have been staying at Wynn this whole year and haven't been to aria since November 2014 or so.. I have a foursome set for Saturday and Sunday at Shadow which he has always comped based on my play and relationship. I think due to me not playing or staying there in almost a year he wanted to let me know..



    Golf is setup for 8:00 am both days.. Four players each day. I will arrange a 7:00 ride out there for you.. I don’t know if you heard or not, but MGM just recently announced a new program called PGP (Profit Growth Plan) which is emphasizing ways to save the company money while still enhancing the guest’s experience.. One of the ways is through Shadow Creek – the criteria to play and get comped upfront there (Which you are) is going to be reviewed very intensely by the big bosses .. I cannot stress the importance of giving me the play you usually give us to insure that your rounds will be comped – especially moving forward...



    He went on to say thanks and he hoped I understood. I think he isn't liking the new criteria as he has to put a tiny bit of pressure on his players to make sure they play.. I also told him to charge me at the end if my play isn't enough for the new PGP! I wont be changing my play habits and know at 3-4 hours a day at a 3000 to 3700 avg I shouldn't have any problems. Hopefully I don't lose my whole BR in 1 hour! LOL... Not likely though.
     
  2. Rubos

    Rubos Low-Roller

    Joined:
    Jul 5, 2014
    Messages:
    182
    Location:
    London, England
    Trips to Las Vegas:
    3
    Misread originally - will watch out in future - cheers
     
  3. Packer

    Packer VIP Whale

    Joined:
    Mar 2, 2014
    Messages:
    4,383
    Trips to Las Vegas:
    149
    I would but it isn't even an issue. All he said was play to my normal play and I think he was letting me know MGM has tightened up some. Also as I said I haven't stepped foot in there in almost a year.
     
  4. pphold

    pphold pp Park Place Degenerate

    Joined:
    Mar 23, 2013
    Messages:
    2,832
    Location:
    Dallas Texas
    Trips to Las Vegas:
    250
    That is something that is not needed for you Packer but that is MLIFE/Aria for you these days. I was told the same thing about being entered in the Blackjack tournament the weekend before. The host just ask that I give them 3 to 5 hours of play a day, and everything will be comped and entry into the tournament. Guess what I'm not booked at any MGM property next weekend.

    Have a great time at Shadow. I guess I won't be playing there anytime soon. Since I'm a Baccarat player in Vegas. Wynn's changes do not effect me. Guess I'll go back to Wynn.

    On a side note, My Caesar's Host called along with the Casino Manager that I should have no issues with my ratings and play not being enter going forward. So will have to see this trip.



    Its a shame now that Host have to tell us they are reviewing our play to see if we will still be comped.
     
    Last edited: Aug 6, 2015
  5. Hobofrank

    Hobofrank Prime Minister of Idiocracy

    Joined:
    Jul 29, 2014
    Messages:
    3,234
    Location:
    Porter Ranch,CA
    Trips to Las Vegas:
    100
    ok wait I read your thing with Aria before

    but how in the F%^$ did Aria lose your info and tell you to piss up a rope exactly?

    I'm going to bring it up with my host at Aria, because after that bullshit with Cosmo and our mutual host there


    everyone's head is on my personal chopping block
     
  6. wookie

    wookie Low-Roller

    Joined:
    Aug 14, 2010
    Messages:
    113
    Location:
    San Antonio
    Trips to Las Vegas:
    10
    On the earnings call they said the PGP should result in $225 million in profit by 2017 from the strip properties. Most of that is savings. That is a huge number! Comps are expensive. No doubt they are part of the savings.
     
  7. natedog666

    natedog666 17 and 20 Expert

    Joined:
    Mar 3, 2012
    Messages:
    2,222
    Location:
    Taipei, Taiwan
    Trips to Las Vegas:
    100
    Wow that's a lot of savings off of comps. Basically everything will get a little bit more expensive comps wise...
     
  8. shifter

    shifter Degenerate Gambler

    Joined:
    Sep 15, 2010
    Messages:
    10,096
    Location:
    At the tables
    Trips to Las Vegas:
    30
    They've raised the comp value at Shadow from $250 to $500 last month and now to $750 per guest.

    This is to bring Shadow back to the exclusivity that it once possessed under Wynn.

    That's the reason for the change.

    Also they are all hopping about the profit stuff around MGM.

    It's pretty ridiculous all they've been chopping in the name of profit.
     
  9. Gargamel

    Gargamel Low-Roller

    Joined:
    Jan 28, 2014
    Messages:
    150
    Trips to Las Vegas:
    6
    Pennypinching Growth Plan
    So players can risk $20k+ and try to save the company money!
    Sound like a recycling pitch.
    We Degens live in interesting times.
     
  10. Packer

    Packer VIP Whale

    Joined:
    Mar 2, 2014
    Messages:
    4,383
    Trips to Las Vegas:
    149
    Ahhh... wookie thank you. That said it all right there. Now I know why this was told to me. That's a lot of money to be saved for them. I hope it doesn't make it hard for us. I will see first hand soon and let you know my take. Sheeesh.. Between the Wynn focusing on carney games and now this at mgm might have to start paying for rooms. Not really. I rather not go.
     
  11. Packer

    Packer VIP Whale

    Joined:
    Mar 2, 2014
    Messages:
    4,383
    Trips to Las Vegas:
    149
    What? 750 a round??? It's now going to cost me 6000 for four of us to play two days? 4000 was bad enough. Please Say it ain't so. I have to play an extra 1 1/2 hours at the tables! Or 65 more come out rolls!
     
  12. wookie

    wookie Low-Roller

    Joined:
    Aug 14, 2010
    Messages:
    113
    Location:
    San Antonio
    Trips to Las Vegas:
    10
    Quote from the transcript at seekingalpha.com

    "Within the Profit Growth Plan itself, I would say about a third of it is revenue uplift and about two-thirds would be to change the way we're doing business to reduce the cost of doing business with the overarching focus that it will not hurt; but in fact, help the guest experience by empowering our employees more to be able to interact with guests and do less drudgery of day-to-day analytics and bureaucracy. So, one – I think that's kind of a mix.

    Now, in terms of Las Vegas versus regionals, just by the scope and scale of our Las Vegas resorts versus regionals, the majority of it is obviously on the strip. So, if you're looking at the $250 million number that I gave you, I'd say about $225 million of it is here in Las Vegas and another $25 million spread between our regional properties."

    They also kept referring to "external expert" helping them. This mean they hired consultants who probably don't understand their business. And how do you save more than $150 MILLION from their last vegas properties without impacting gamblers? They said they are going after big line items first. I wonder what those big expenses might be. Usually when a company is looking for this type of savings it means a reduction in headcount. But they said it is not savings from a RIF. Thankfully it does not mean job cuts, but it will come from somewhere.
     
    Last edited: Aug 5, 2015
  13. MidnightBJ

    MidnightBJ Low-Roller

    Joined:
    May 29, 2013
    Messages:
    112
    Trips to Las Vegas:
    7
    This is a disturbing continuation of a bad trend in cutting comps. I always believed that casinos understood the psyche of gamblers, but now I am not so sure. I go to get everything free and forget somewhat about how much I am losing. With a fully comped trip, it lessens the sting. If comps tighten, most mid-level and up gamblers are going to notice the change.

    Right now I get a sky suite and F&B covered at Aria and a show if I want. Now, if I lose the food or get downgraded to a regular room, it will change my behavior. I may change properties, or more likely, lessen my play considerably and just pay for everything. I still like Vegas, so I will go for the experience, but I will back down to the lowest level that will get me a good Blackjack game. I have already done that at my local casinos, because they don't have enough to comp me, so I play lower limits and still enjoy it, surprisingly. When I go to vegas, I bet 10 times higher.

    Ultimately, they will net less profit from me, even with me paying, because my losses have always been more than I would have spent. They may lose a lot of the players that generate gambling revenue. The low rollers provide almost nothing to the bottom line. I am willing to change, but I don't want to. I think we all like the special treatment and allure of being "special." Without that, it is just another regional casino. I feel the changes are inevitable, but it will ultimately backfire for them long-term and they will have to back-track.
     
  14. natedog666

    natedog666 17 and 20 Expert

    Joined:
    Mar 3, 2012
    Messages:
    2,222
    Location:
    Taipei, Taiwan
    Trips to Las Vegas:
    100
    Maybe they just wised up? Most gamblers will still go gamble even though they had to pay for everything. Macau and Singapore have minimal comps and they are packed, though Macau a little less than before but not because of any comp issue, mostly a visa issue.

    They probably ran it through some complex analysis and figured out that some players were not profitable if they comped them too heavily, and some players will still come if they reduced their comps.
     
  15. wookie

    wookie Low-Roller

    Joined:
    Aug 14, 2010
    Messages:
    113
    Location:
    San Antonio
    Trips to Las Vegas:
    10
    Could certainly be. That is the crazy misunderstanding of consultants. The big difference in Macau and Singapore is MGM has to pay WAY higher taxes. That makes it more difficult justify comps in those areas. I don't have the numbers handy but it is something like 30% higher than vegas. Vegas can comp like crazy and still be better off per dollar wagered.
     
  16. leo21

    leo21 VIP Whale

    Joined:
    Jan 9, 2010
    Messages:
    4,718
    Location:
    Chicago South Suburbs
    Trips to Las Vegas:
    14
    I love it how they do stuff like this and try to make it out like gamblers and comps are killing the company even though they built a frickin' condo building that they are tearing down and will spend as much in construction costs in court fighting over it. If you want to change your business model fine. But we should never let me let them make it internalize the changes as if comps are an expensive problem and we are wrong to to want them.
     
  17. Hobofrank

    Hobofrank Prime Minister of Idiocracy

    Joined:
    Jul 29, 2014
    Messages:
    3,234
    Location:
    Porter Ranch,CA
    Trips to Las Vegas:
    100
    that's really the amazing part of Vegas, it's like a magic island where crappy websites that cost $500 to fix exist and they tear down a building 90% complete to add another CVS, then cut comps to save the "bottom line"
     
  18. Chuck2009x

    Chuck2009x VIP Whale

    Joined:
    Apr 5, 2009
    Messages:
    4,081
    Trips to Las Vegas:
    16
    This to me reads as "lower comps and take away leeway - here's the new formula, applies to everybody unless approved upstairs in advance."
     
  19. shifter

    shifter Degenerate Gambler

    Joined:
    Sep 15, 2010
    Messages:
    10,096
    Location:
    At the tables
    Trips to Las Vegas:
    30
    that's the entire reason for the change.

    Bobby Baldwin is tired of seeing the course log-jammed with foursomes of 1 mid-level player and 3 of his buddies.

    I for one welcome the change.

    I miss the days when you could play a round and not see a single other person on the course.
     
  20. shifter

    shifter Degenerate Gambler

    Joined:
    Sep 15, 2010
    Messages:
    10,096
    Location:
    At the tables
    Trips to Las Vegas:
    30
    these days casinos are run by corporate suits who have never gambled $1 in their lives.

    I worked with a large casino group recently and saw it first hand.

    I couldn't believe it really.

    they have no concept whatsoever about the psyche of their customer, nor do they care.

    it's all suits kowtowing to bean counters in order to boost some number that gives them a bigger bonus at the end of the year.

    it's nothing but short-term thinking to temporarily boost stock prices and line their pocketbooks.

    Steve Wynn is the last of the true casino visionaries that understood the gambler, but unfortunately he doesn't really run Wynn anymore and the suits over there are the same as everywhere else.
     
Tags:
Thread Status:
Not open for further replies.