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twitterDAILY MEMO: GAMING:
Harrah’s seeks more guests from abroad
International marketer hired to work with travel planners in other nations
Monday, Sept. 7, 2009 | 2 a.m.
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To plan its Garden of the Gods pool area, which opened last week at Caesars Palace, designers for Harrah’s Entertainment plotted the precise movement of the sun to create enough shade to satisfy customers, particularly from Asia, who prefer not to tan.
The company has refurbished and will rededicate this month an ornate shrine to the Hindu god Brahma — a symbol of good fortune — that has fronted Caesars for more than two decades.
It has opened restaurants with traditional foreign fare, including Ginseng 3 at Imperial Palace and Beijing Noodle No. 9 at Caesars, which has recently expanded its service to 24 hours on weekends because of demand, and the Krug Room at Caesars’ Restaurant Guy Savoy — a private dining room similar to those in Asia and Europe where customers can taste Krug champagne.
The company signed a one-year contract with Japanese musical production “Matsuri” at Imperial Palace, Chinese singer Hins Cheung will headline Caesars for Thanksgiving and Mexican singer Luis Miguel will be back at Caesars for Mexican Independence Day weekend.
But Harrah’s thinks it can do better in drawing international tourists — by focusing on where they live.
Harrah’s, which already boasts the biggest and most envied customer list in the casino business, has signed a deal with a global marketing company to pitch Harrah’s Strip properties to travel agents, tour operators and business groups in foreign countries.
Discover the World Marketing, which drums up foreign business for major airlines and hotel companies, functions much like the Las Vegas Convention and Visitors Authority’s handful of foreign branch offices. Instead of selling all of Las Vegas, Discover’s more than 450 marketers in 83 offices in 55 countries will sell the virtues of Harrah’s seven major Las Vegas properties to foreign travel agencies that package vacations and business trips.
Among Discover’s goals: drumming up travelers for gatherings around lesser-known foreign holidays that Americans don’t celebrate.
Las Vegas hotels are filling rooms with penny-pinching tourists in place of the expense account-wielding business travelers who flocked here before the recession. More than ever, hotels need to attract more business from foreign customers, who typically spend more time and money in Las Vegas, hotel experts say.
Although total visitor volume is down 7 percent through June, the number of passengers arriving or departing to international destinations is about the same so far this year, according to the latest tourism figures. Last year, that accounted for about 15 percent of visitors coming to Las Vegas.
Foreign customers stayed an average of 4.5 nights last year, a full day longer than domestic visitors, and spent about $600 more than domestic travelers, excluding gambling.
“It’s a great untapped market,” said Jeff Voyles, a casino management professor at UNLV.
Using a third party for mass marketing in foreign countries is unusual for major casinos, which have long had marketing offices in foreign countries to cultivate high-rollers rather than drum up new business, Voyles said.
Competitor MGM Mirage says it cultivates direct relationships with foreign travel agents and tour operators in addition to its casino marketing offices.
Boosting foreign tourism won’t be an easy task because the masses have less money to spend than their high rolling counterparts, as well as lots of nearby vacation options, Voyles said. Besides having to cope with a cumbersome visa process, some foreign tourists can’t enjoy bargains on rooms, food and entertainment if it costs too much to get here, he said.
Discover the World marketers, with more than a decade of experience in their home countries, can smooth hiccups in the planning process and ensure that travel agents are packaging the best available deals and highlighting attractions with particular local appeal, company CEO Jenny Adams said.
While it lacks many direct flights from foreign countries, Las Vegas has plenty of reasonably priced, one-stop airline capacity to handle foreign customers, said Mike Boyd of Boyd Group International, an independent airline consultant in Colorado.
While struggling domestic airlines have cut several routes to and from Las Vegas, international air service has increased slightly, as additional flights from Canada have offset losses in Mexico, the United Kingdom and Germany, according to recent airport data.
What Las Vegas needs even more than incremental flights is more aggressive marketing to foreign tourists, who may not perceive Las Vegas as a value, Boyd said.
Discussion: 34 comments so far…
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Well they have to make their money somewhere, They pissed everybody off that they have had as players and started to cater to the trailer park trash. They now realize that trailer folk dont spend what is needed to pay Gary Loveman 92.3 million a year.
Cut staff, 6/5 blackjack, tighten up the machines to the point nobody want to be a part of your schemes. *** Here is an idea, get new people to screw ***,,, they dont know all about they ways we can get the money from them. The employees are not happy with this , customers are not.. who is ,? Oh gary and his 92.3 million that is who... great job ,, keep it up and soon there will be nobody left to screw,, ! then what?
I am a multi-lingual casino enthusiast from overseas and would happily work for a Las Vegas based casino company that's catering to overseas travellers. I am sure that this would be a big asset to a casino located in Las Vegas. There are many European gamblers a little afraid of visiting Vegas because they're not so much familiar with the language. A great co-operation with European travel-agents and the option to assist Europeans in their local language would probably increase the number of overseas travellers. It's because they know about the fascination of Vegas. May of these people are afraid to explore this new playground for some reason. If somebody knows the right people at the right place, interested to work out this idea, please let me know. Thank You :)
From Switzerland
Henry Ford put his employees first, Maybe Harrah's should try that!
We broke America and shipped our jobs over there. Now they have the money as our dollar slips more every week. We are a value now.
harrahs blows
Hey Harrah's: Do everybody a big favor and sell Caesars palace to a real hotel company.
A pox on Harrah's and all the other corporate types that ruined Las Vegas.
Wouldn't it be more viable to simply offered carnival games to distant suckers via the Internet?
Labor Day weekend 2001 (just before September 11th) was the last time I saw a GANG of people in Las Vegas. Hasn't been the same since.
I've said it before and I will say it again. Harrah's along with every other casino needs to create a players club that does more then reward you with a free cup of coffee if you lose a thousand dollars. They need to create a players club that gets people in the door to play games where sometimes you may win. Comp the damn rooms and and the gamblers will come. The casino executives will of course disagree as they will say that this will create an environment that will open the casino to be taken adavtage of but I disagree.
Harrah's still doesn't get it. They've ripped off US tourists now they are going to rip off over seas tourists. Until they are sold to a CO that gives u an even break they will not make money. You can only go to well once to often.
kenokd, you should check the facts, I belong to the MGM Players Club and will be flying in from Vermont thanks in part to the comps. Wife & I have three free nights at The Excalibur and other comps. We also have two free nights at The Venetian. Strip casinos are very giving with their comps and treat you very well.We look forward to our visit to Vegas and seeing the hard working but friendly staff at both of these resorts. Except for commenters here, Vegas has some of the friendliest and hardest working people I have ever had the pleasure of doing business with.
Dear edandersonvt: you should have saved the airfare and drove to Foxwoods or Mohegan Sun. An empty room does not cost the casino anything, and occupants cost about $18 per night (the Excalibur probably less)on the high side. I am sure they know they will get their money and then some out of you...they are not giving you anything...post your profit and loss once you get back home...the readers will be interested. Good try Harrah's...don't think it will work...Harrah's should partner up with the vendors to WalMart...they are the Asians with the money...
ol! @ serious!
So serious, what business model do you propose a casino company use to make money and keep jobs in this city? Let me guess "bring it back to the old days when Vegas was simple and everyone knew your name" news flash those casino's where run by the mob who strong armed the competition and skimmed money off the top. It's not the 1940's, 50's or even 70's anymore. Wake up buddy".Dude we all know it's nothing for the casino to comp rooms. That's the point genius, they want you to spend your money gambling, and guess what, customers like edandersonvt want to spend their money gambling! Not on a room! So a comped room, no mater how much it didn't cost the casino, is still value to a traveler We need guys who get it like edandersonvt coming to our great city. Were they get a better experience than any sorry Foxwoods joint could ever offer. We also need international tourists willing and able to spend coming here also.
I commend Harrah's on thinking outside the box and realizing that in this time we need proactiveness to maintain jobs etc. All you people make me sick, nothing but complaining about how these joints are run but not a single viable alternative business model is offered. Let guys like serious run a casino for 6 month and the joint will be bleeding right through the bricks!
There were a lot of Australian's in town over the weekend. Such nice people.
To Smb I don't know who's writing your material but u are unaware of the doings of Las Vegas. I would suggest reading Jean Scot's books and The Las Vegas Advisor re insight to Las Vegas.
Expect a boom in foreign tourists.With the US $ going down in value people from outside the US will take advantage of the discount in the US dollar and travel to the US.
Vegas will be a big benafactor
The last time I was in Vegas 1 Canadian dollar was worth 77 cents,that was in March.Currently 1 CDN dollar will get me 92 cents and that will get better in the coming months.A low US dollar is excellent for tourism,it makes sense to appeal to foreign customers.
I think that the machines are a little stacked against the customer,they should increase the players chances on the slots.I just want to have fun in general,but I hate putting in $ and watching the $ disapear with such speed.I've been coming down for four years and unless it's my imagination it seems like you lose your money faster and faster.They should be aware of that fact,they set the odds.People want to have fun.
Expect a wave of Canadians with the improved US $.Remember it's great for foreigners coming to the States,I know many people who won't go when they get so little exchange on a hard earned Canadian Dollar.
Want my advice? Go back to Bulgaria.
Canadians are cheap, Australians spend, but why not go to Macau or Monte Carlo, instead?
The last thing we heard was the "Hispanic Market."
Sure it was/is there, but the "suits" over estimated it's potential. Same thing with the Asian and Euro market. As the guy says, they have a long way to go to match European service and multi-language skills
By the way, what happened to all the middle-easterners that used to come to town?
When you lose 30% of your dough before you start that does'nt help.
The United States Government is considering a 10 dollar immigration "fee" to all tourists with a visa waver program , entering the U.S. They reckon that with probably 500,000+ visitors enterning the U.S. every single day they will make additional 5 Million Dollars in extra profit, daily.
I don't like such policies. When an American visitor is entering a country in the European Union or Switzerland, he's not even asked to smile for an electronically stored photograph or have his fingers printed or answer stupid questions on an immigration form. Now the hassle continues and they also charge me for going through all these discriminating procedures.
Well, you can take one thing for granted: Vegas is not the only gaming capital in the world anymore. Right now , under the heavy recession, the hotels are forced to give the rooms away at a discount. However, this crisis will come to an end some day. But then it's not sure that all tourists will accept the permanent hassle on the US customs. Many are already considering going to Macao, which in fact has over-run Vegas figures by far already.
Vegas is Vegas, no doubt about it. Let's hope it will remain as it is. It's about time for the big Strip hotels to bring back the good old rules and some more full pay videopoker , as otherwise I see a dim future for these debt-loaded corporations.
From Switzerland
edandersonvt
Nothing is free in Vegas even those "comped" rooms. Kinda like those "free drinks" when gambling. just love paying $20 for a watered down scotch.
Not sure if anyone else noticed,but i was getting alot of older money this weekend!Good for me,as i do look at all my bills and coins,and came across some very valuable coins as well as bills!But have noticed i have been getting alot of older coins and bills?
There have been a few comments reguarding when the mob ran this town.There are,as with any company good sides as well as down sides.You have to know how a crime family works.As long as the tribune got his,all was well!Was there skimming,yes there was.Were there payoffs,yes there were.Were problems buried?yes they were.But as long as the tribunes got theres,more money came back in than left this place!And in the long run the house won,But you had a great time,and were treated like a somebody then!Crime was down,and that included keeping local law enforcment in line too!Times indeed were better when the tribunes ran VEGAS!!!
rumrunner
not much different than how Vegas is run today but it's under the 'corporation' banner now and all done 'legally'. Kinda like how Wall St does business.
If it were being run the same way,vegas wouldnt look as it does,and be in the trouble its in!!!!
What Harrahs needs to do is reboot itself to sell back to the middle class while giving them a good deal and a good meal. They spent too much time with the kids in their 20's that they forgot making brand loyalty. The invent the players card to instill that trust of coming back, Harrahs forgot that those yuppies had money to spend again & again while young folk just blow it all at once.
well this is going to be a bust for the poor servers/dealers here. That clientele doesn't get the tipping policy which so many live off of. heck they smoke in your face grunt not converse and generally keep to themselves and their kind(which i suppose is normal) i remember hearing the term ugly americans when they talked of us traveling to other countries back in the day. now we're dependant on their discretionary dough .lets see how that plays, cuss it probably doesn't pay at least at the customer server level. Don't worry GARY your covered..
Hey SMB
I think you should give some of us a little bit of credit and stop writting reply posts as if every one except youself is stupid. I understand that that the casinos need to have a successful business model and I think we all understand that you can't go back to running the casinos like the mafia but Harrah's is simply not doing a good job when you compare them to other casinos.
Big surprise.
These morons (Harrahs) crossed the teachers union. Now the teachers unions won't hold event at there casinos.
The more unions they cross the farther away they will have to find customers.
Vegas used to be a great place visiting. ...I said: used to be. but it's years ago since I had big fun. They tightened up on all corners, reduced the match play coupons, removed the great machines, raised the bus fee to 3 dollars (used to be 1 dollar not too much time ago), and tolerate these bunches of Mexicans handing out fliers of highway robbery prostitutes charging 500 usd for one quick sequencing. It's a joke what's happening on Las Vegas Boulevard these days. The classy days of the Dunes, Sands and Desert Inn are over a long time ago. I remember when the Dunes and the Desert Inn were THE PLACES TO GO. What's it today? Bellagio? Planet Hollywood? lol.
...and I thought that prostitution is illegal in Vegas? Why do they allow these Mexicanos spread these garbage fliers and provocing the regular tourists on the Strip????
Harrahs is doing this because it has already rear ended every serious gamer in the U.S. and needed some new blood to drink that is gullible. I guess there is no low they will not stoop to. I worked for this bunch of blood suckers and Loveman is the Dracula of the slimey pack. As far as putting their employees first they do!,we were the first ones in the unemployment line! Their stupid decisions are bankrupting them and the loyal employees who refuse to stand by and see guests treated like garbage....well we get fired for speaking up. When Harrahs was sold to Apollo/Texas group it died a swift and horrible death as did Linens and Things, The Icing, and what ever company of theirs that is next to bankrupt. Who told these stupid idiots that they could run the biggest gaming corp. in the world should have taught them how to sell sheets,bath towels and costume jewelry first!