Casino operators are witnessing a huge decline in their revenue’s which has extended beyond a second year now. This is causing a lot of worries for them and at the same time also to concentrate on the market and attract customers. Each casino operator is trying different methods to beat the slump and attract more number of customers. In this run eve the casino operator Galaxy Entertainment Group has been trying to attract a new breed of customers in an attempt to prop up non-gaming revenue. The operator has come up with something new and is now rewarding big shoppers with free hotel stays as well as access to resort facilities. Earlier these perks were only reserved for VIP gamblers.
Kevin Clayton Chief Marketing officer of Galaxy Entertainment Group in an interview to Bloomberg said:
“A VIP can be either a big gambler or a big shopper”, while high-stakes gamblers remain an important source of income in Macau, the company is redefining its VIP label.
This move comes in a time when operators like Galaxy are witnessing a big decline in their revenues and even their operating margins shrink amid an outflow of high-wind customers. It is true that VIP gamblers from China have helped Macau even surpass Las Vegas to become world’s largest casino hub over the past decade. But casino market has actually nosedived since 2014 as China President Xi Jinping’s crackdown on corruption has scared VIP customers. Macau is now trying to reinvent itself and attract more tourists and recreational gamblers rather than the high spenders. Galaxy Group’s shares have plunged 44 percent in 2015 which is not a good sign and the company is geared up to make some new reforms to attract new customers and scale up dipping revenue.
As per a new strategy Galaxy Macau, the Hong Kong based operator whose flagship property has gone through major expansion in May 2015, from this month onwards will rewards customers who spend more than 10,000 patacas ($1,252) a day with shopping vouchers and free use of the resorts facilities. Those who spend triple that amount will enjoy a complimentary night at its hotels. This promotion gets introduced after Galaxy’s two new casinos Melco Crown Entertainment Ltd and Studio City failed to bring about a recovery in Macau’s gambling receipts. Let us see what would this new promotion to reward customer brings to the Galaxy.
