Short answer
Designers and strategists should view non-gaming amenities not as standalone profit centers, but as integral components of a larger ecosystem designed to attract and retain customers, thereby driving revenue across multiple business units.
- Field
- Innovation & Markets
- Source
- Digital Scholarship - UNLV (University of Nevada Reno) (2020)
- Method
- Quantitative analysis using theoretical models
- Evidence
- Strong effect
Strategic integration of non-gaming amenities like food, beverage, and retail outlets can substantially boost both direct and indirect revenue streams, particularly impacting gaming and hotel occupancy. This innovation & markets research insight is drawn from a 2020 study published in Digital Scholarship - UNLV (University of Nevada Reno). Using Quantitative analysis using theoretical models, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Designers and strategists should view non-gaming amenities not as standalone profit centers, but as integral components of a larger ecosystem designed to attract and retain customers, thereby driving revenue across multiple business units.
Non-Gaming Amenities Drive Significant Indirect Revenue in Casino-Resorts
Strategic integration of non-gaming amenities like food, beverage, and retail outlets can substantially boost both direct and indirect revenue streams, particularly impacting gaming and hotel occupancy.
Digital Scholarship - UNLV (University of Nevada Reno) · 2020
Key Findings
- 01Comped food and beverage covers contribute the most to gaming revenue, primarily slot revenue.
- 02Retail outlet sales significantly contribute to both slot and table gaming revenue.
- 03Other retail-related sales (spa, salon, pool, arcade) also positively impact slot revenue.
- 04Food and beverage covers and retail outlet sales are positively associated with hotel occupancy.
Application
Design takeaway
Designers and strategists should view non-gaming amenities not as standalone profit centers, but as integral components of a larger ecosystem designed to attract and retain customers, thereby driving revenue across multiple business units.
How to apply
When designing or redesigning hospitality or entertainment venues, consider how different amenity offerings can complement each other and drive traffic to core revenue-generating areas.
Project actions
- 01When researching a product or service, consider its indirect economic impacts.
- 02Use data analysis to quantify the relationships between different business components.
- 03Develop theoretical models to test hypotheses about complex interactions.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Empirical testing of theoretical models.
- +Inclusion of both direct and indirect revenue contributions.
Limitations
The findings might be specific to the type of casino-resort studied and may not apply to all hospitality businesses.
Reliability & validity
The study's reliance on theoretical models and specific property data may affect generalizability. Further research across diverse properties and time periods would enhance reliability and validity.
Think critically
To what extent can the principles of indirect revenue generation from non-gaming amenities be applied to other industries that offer a mix of services and products?
Design Principles
"Diversify revenue streams by leveraging the synergistic effects of integrated amenities."
This research highlights that the value of non-gaming amenities extends beyond their direct sales. By understanding and quantifying their indirect contributions, businesses can make more informed decisions about amenity investment, marketing, and operational strategies to maximize overall profitability.
What This Means for Your Design
This study shows that things like restaurants, shops, and spas in a casino hotel actually make the casino itself more money, not just from people spending money there, but also by bringing more people in who then gamble.
How to use in your project
- 1.Use the findings to justify the inclusion of specific amenities in a design proposal, citing their potential for indirect revenue generation.
- 2.Incorporate the concept of indirect contribution when analyzing the market viability of a new product or service.
Add to My Project
Quick Cite
Paragraph starter
This research indicates that non-gaming amenities, such as food, beverage, and retail, play a critical role in driving indirect revenue within casino-resort properties. By strategically integrating these offerings, businesses can enhance customer engagement and significantly boost overall profitability, particularly impacting gaming revenue and hotel occupancy, a principle applicable to the design of integrated entertainment and hospitality experiences.
Source
Digital Scholarship - UNLV (University of Nevada Reno)
The Non-Gaming Business of the Gaming Industry: Evaluating the Contribution of Non-Gaming Amenities at a Casino-Resort Property
journal · 2020
View sourceQuestions About This Research
- What does the research say about non-gaming amenities drive significant indirect revenue in casino-resorts?
- Designers and strategists should view non-gaming amenities not as standalone profit centers, but as integral components of a larger ecosystem designed to attract and retain customers, thereby driving revenue across multiple business units. Evidence: Digital Scholarship - UNLV (University of Nevada Reno) (2020).
- Why does "Non-Gaming Amenities Drive Significant Indirect Revenue in Casino-Resorts" matter for design?
- This research highlights that the value of non-gaming amenities extends beyond their direct sales. By understanding and quantifying their indirect contributions, businesses can make more informed decisions about amenity investment, marketing, and operational strategies to maximize overall profitability.
- How can designers apply this research?
- Designers and strategists should view non-gaming amenities not as standalone profit centers, but as integral components of a larger ecosystem designed to attract and retain customers, thereby driving revenue across multiple business units.
- What were the main findings?
- Comped food and beverage covers contribute the most to gaming revenue, primarily slot revenue.. Retail outlet sales significantly contribute to both slot and table gaming revenue.. Other retail-related sales (spa, salon, pool, arcade) also positively impact slot revenue.. Food and beverage covers and retail outlet sales are positively associated with hotel occupancy.
- What research method was used?
- Quantitative analysis using theoretical models.
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2020 journal from Digital Scholarship - UNLV (University of Nevada Reno).
- What should I do differently in my next project?
- When designing or redesigning hospitality or entertainment venues, consider how different amenity offerings can complement each other and drive traffic to core revenue-generating areas.
- What are the limitations?
- The study focused on a single property, and the effect of hotel occupancy on entertainment headcount was not statistically significant.