Can an exciting casino experience change consumers’ current gloomy mood? | By Jonathan Barsky and Lenny Nash

REGIONAL CASINO RESULTS

From upscale to down–market, there are a wide variety of casino experiences available across the US. From the festive French quarter to “Sin City” Las Vegas, the atmosphere and clientele of casino markets can be vastly different. These differences may help explain the variation in guest satisfaction across casino regions.

For example, Connecticut, known for its large Indian casinos Mohegan Sun and Foxwoods, offers a consistent upscale experience and receives higher satisfaction than any other region. In Mississippi, where casino revenues have declined nearly 10% in 2009, post Katrina work has paid off, attracting customers who report high levels of customer satisfaction. Atlantic City, suffering from rising competition and declining consumer spending, represents a diverse market that gets mixed reviews from its clientele. And in Las Vegas, the world’s largest casino market, customer satisfaction scores are, on average, lower, perhaps due to the size and diversity of the market.

Although guest satisfaction levels with accommodations (rooms) and gaming are closely linked, customers report being happier with their accommodations. Reno has the biggest gap between accommodation and gaming satisfaction; Connecticut has the smallest.

Which casinos deliver the best experience?

The Market Metrix Casino Market Study measures customer satisfaction with the CASINO EXPERIENCE based on five key measures (listed in order of importance):

1. Casino ambiance
2. Friendliness of casino staff
3. Helpfulness of casino staff
4. Variety of gaming options
5. Value of casino promotions

The CASINO EXPERIENCE score is intended to measure customer satisfaction with the overall casino experience (and does not include hotel rooms, facilities or hotel staff). The top scoring casinos (see table) consistently meet or exceed customer expectations in each of these five areas more than other casinos.

Among all casinos, this study found that the “casino ambiance” is critical to overall customer satisfaction and satisfaction declines considerably when customers perceive a poor ambiance. Casinos with the highest “ambiance” scores also reported higher emotions scores, especially in the measure of feeling “Excited” and “Elegant”. Service scores were also higher at these properties – especially the measures of the friendliness and helpfulness of casino staff. “Variety of gaming options” and “Value of casino promotions” are also important, but are less important in overall casino satisfaction for guests.

CHANGES 2008 to 2009

Customer satisfaction for 2009 is down at 75% of casinos in the US. These disappointing results, however, offer some interesting insights and trends.

• Customers think they are getting a better value now
• The casino customer profile is wealthier, older
• Planned trips and nights per year are not down – spending is
• Customers are more price sensitive; switch more easily based on price
• More people are reading reviews before booking casino accommodations
• Loyalty programs are more important in casino selection
• Employee ‘can do attitude’ is down, a key driver of customer satisfaction and loyalty

The good news is that customers’ perception of value has improved. Casinos are not only offering discounts and promotions but are working extra hard to hold onto their customers. But many of these customers are older. Demand from the younger age segments is shrinking at a faster rate than the overall averages. The average casino guest is now 53 years old, while in 2008 the average age was 51. This is troublesome because many properties have been repositioning their amenity mix to attract younger players, emphasizing popular table games and high–energy entertainment clubs.

Although cost–cutting has helped many casinos weather the recession and will bolster their bottom line in coming quarters, new customer demographics and behaviors require new strategies. While dropping rates will attract people to take advantage of deals, understanding consumer behavior and offering guests what they want, while attracting the right customer mix will be imperative.

About Market Metrix | Market Metrix is helping hospitality companies around the world succeed in the tough economy. With guest feedback collected 24/7/365, and built-in service recovery and investment decision support tools, we help clients save money and reduce risk of client defections. Based on award-winning research and breakthrough concepts, our SaaS-based products deliver instant survey results, analysis, and management tools for increasing revenue and reducing staff turnover. Our benchmarking database, MMHI, is the most comprehensive, independent comparison of consumer brand satisfaction in the industry. Our annual MMHI Awards are coveted by lodging and travel enterprises around the world. With clients that include more than 120 brands across 70 countries, Market Metrix has been helping leading hospitality companies turn feedback into performance since 1996. Visit www.marketmetrix.com.