Panel: Building loyalty means offering value

Wednesday, Oct. 17, 2001 | 9:25 a.m.

Casino consumer experts can't wait for the Palms hotel-casino in Las Vegas to open.

Members of the panel, who between them have written books, columns, articles and newsletters about customer service that clicks with casino visitors, say the Maloof family's new 42-story property opening next month near Flamingo Road and Valley View Boulevard is prime for offering deals that will appeal to loyal customers.

That isn't based on any inside information panelists have on the property -- it's more of a reflection on how the Maloofs ran the North Las Vegas Fiesta hotel-casino before they sold it Station Casinos Inc.

"I'm really looking forward to the Palms," said Anthony Curtis, publisher of the Las Vegas Advisor, a monthly newsletter on casino industry deals, in the panel "The Other Side of the Table: Casinos from the Player's Perspective" at the Global Gaming Expo earlier this month.

Other panelists concurred, noting that when the Maloofs ran the Fiesta, customers were happy with what they perceived as more abundant video poker jackpot payouts.

But the Maloofs sold the Fiesta to Station Casinos Inc. and used some of the proceeds to begin building the $265 million Palms with its 95,000-square-foot casino and 2,200 slot and video poker machines.

Under Station management, players noticed a difference at the Fiesta.

"Players were perceptive that they were losing their money faster at the Fiesta," said panelist Jefferey Compton, who writes gaming columns with partner Bob Dancer.

Many players voted with their feet and went to Station rival Coast Resorts' locals' properties, the Gold Coast, Barbary Coast, Orleans and recently opened Suncoast hotel-casinos.

Those properties, the panel concluded, were among the best for customer value when asked to name where players get the most and least bang for their bucks.

Panelists gave several examples of what makes a casino a crowd-pleaser. Gamblers look for the most value for their money, whether that comes in the form of loyalty programs and slot club cards that generate comps quickly, complimentary promotions to everyday players and not just high-rollers, meal deals or games that are perceived as "friendly" to the player.

Compton gave high marks to Station managers for their efforts to win favor from customers who abandoned them.

"They faced up to the mistakes they made at the Fiesta and said, 'We screwed up here,' " Compton said. "Then they went about trying to fix things."

Panelists said they liked Station's one-card-plays-all Boarding Pass loyalty program.

Author Henry Tamburin joined Dancer in giving high marks to MGM MIRAGE properties as crowd pleasers.

"The Golden Nugget is well-organized, they listen to their customers and they give value," Tamburin said of MGM MIRAGE's entry in the downtown Las Vegas market.

Panelist Max Rubin, author of the book "Comp City," said "anything with Jack Binion's imprint on it" is going to be a good deal. But then he immediately put downtown's Horseshoe hotel-casino, majority owned by members of Binion's family, on his list of worst properties because it has gotten away from some of the ideals of customer service evident under Jack Binion's ownership.

Panelists also took swings at properties owned by Park Place Entertainment Corp. and Harrah's Entertainment Inc.'s Rio hotel-casino.

Compton and Curtis were most critical of the Rio, which they say is overpriced.

"They've done all kinds of great things at the Rio," Curtis said. "I love their buffet. But it seems like everytime they put something together that people really like, they raise the prices on it."

Steve Bourie, author of the "American Casino Guide," said his favorite casino experiences haven't been in Las Vegas -- they've been in Mississippi and Missouri, where he said the region's Southern hospitality is winning player loyalty with friendly dealers and staff.

"You are in the business of slowly taking players' money from them," Bourie said. "At least you can be pleasant about it. It ruins the entertainment experience when the dealers are surly and slow."