Abstract
The rooms division in many Las Vegas casino properties has functioned almost as a loss leader to encourage guests to stay and play in the casinos. Applying yield management to boost rooms revenues does not seem to apply to such a scenario, but at least five Las Vegas properties now have basic YM systems that have boosted revenues. One property of 1,000-plus rooms has installed a proprietary computer-based YM application that gives it sophisticated control over room rates based on expected occupancy. The other four properties do not use computer applications, but still apply YM based on occupancy projections. In some cases, reservations and front-desk employees are involved in yield-management rate decisions, while other properties exclude front-line employees from the YM loop. Although the revenue from gaming operations has long overshadowed rooms revenue, it is clear that casino hotels could benefit from some form of yield management in their rooms division, as that area's importance as a profit center increases.
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