Customer focus urgently needed

* By Sudhir H. Kalé, Ph.D. The casino industry in Macau grew from US$2.77 billion in revenues in 2002 to over US$45 billion in 2013. Then, in 2015, revenues fell precipitously to under US$29 billion, a fall from which casinos are still reeling.  In 2009 two very senior casino executives predicted casino revenues to top US$100 billion by 2020. Now that we are approaching the cusp of the new decade, a figure of US$35 billion seems more realistic. Macroenvironmental factors (such as “tigers and flies” campaign, restrictions of Union Pay credit card withdrawal, and tightening of credit in China) aside, the casino industry in Macau, has partially been a victim of its own success. The years from 2004 (when Sands Macao opened on the Peninsula) to 2013 were marked by a building flurry with scant regard for customer retention. The number of casinos in Macau increased from 15 to 35 during this...

Intelligence Articles is a premium content section developed for AGB members only featuring in-depth articles on relevant items of interest across the multiple Asia Pacific Gaming jurisdictions. To continue reading, subscribe now.

Related Articles

Clouds darken for U.S. operators in Macau

The COVID-19 pandemic has taken a huge toll on casino revenues in Macau with U.S. operators such as Wynn Resorts and Las Vegas Sands bleeding more than $2 million a day in the 2020 second quarter.
Slot Machines in Australia

Covid reopening like a start up

Casinos and clubs are reopening their doors to the public and so far, for most businesses, the comeback has been far more difficult than anticipated. The situation is analogous to learning to walk again after a horrific automobile accident. 
The Star Entertainment

Does the Crown/Star merger pass the Drucker test?

Peter Drucker was arguably the most influential management scientist who ever lived. In 1981-82, Drucker articulated his Six Rules of Mergers and Acquisitions. We shall look at each of these six rules and evaluate the proposed Crown-Star merger according to these rules.
Australia’s hospitality labor shortage at crisis levels

Australia’s hospitality labor shortage at crisis levels

Australia’s hospitality and gaming industry is suffering from a labor shortage which has been described by those in the industry as having hit “crisis” levels. 

Pandemic induces rapid change in consumer behavior

While the economic, political, and cultural impacts of this pandemic will differ from country to country, there exist a handful of trends that will be experienced around the globe, albeit to varying degrees. The direction and pace of these developments are nothing short of breathtaking. According to the Barrett Values Centre, the tectonic shifts that […]
Covid-19 precautions in Macau casinos

Covid-19 poses five key risks for casino recovery

The COVID-19 pandemic has left the global gaming industry bruised and maimed and there are five key factors to suggest the recovery may face significant headwinds. By Sudhir H. Kalé, Ph.D.