Macau casino operator Galaxy Entertainment Group (GEG) is redefining the term “VIP” in its business vocabulary, switching its attention from high rollers to big-spending shoppers.
For more than a decade, high-powered gamblers fuelled Galaxy’s business in the gaming hub, but as their numbers dwindle in the former Portuguese enclave, Galaxy has turned its focus to the new “VIPs” – power shoppers.
GEG chief marketing officer Kevin Clayton says the group is now rewarding big shoppers with perks that were once exclusive for high rollers. It is part of a business strategy to attract more tourists and boost non-gaming revenue.
“A VIP can be either a big gambler or a big shopper,” says Clayton. A shopper must spend more than 10,000 patacas (US$1252) a day to be considered a VIP. In return, Galaxy rewards its retail-oriented guests with shopping vouchers and free use of the resort’s amenities. Those who spend triple the qualifying amount are offered a night’s complimentary accommodation.
GEEG’s total gaming revenue for the first three months of this year was down 5 per cent year-on-year, while VIP gambling revenue edged up 3 per cent. Galaxy Macau, with its mass market focus, earned the bulk of GEG’s overall earnings during the quarter. Its revenue improved 12 per cent year-on-year, while non-gaming revenue rose 71 per cent to HK$666 million (US$85.88 million), thanks to 99 per cent occupancy at its five hotels.
July 15, 2016< 1 mins read
