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Revenue management in fabulous Las Vegas: Combining customer relationship management and revenue management to maximise profitability


Casino companies have the knowledge and technological resources to implement highly customised pricing and marketing strategies. Existing tracking mechanisms and the use of state-of-theart software have allowed the industry to combine data mining and revenue optimisation tools to allocate rooms effectively, based on the potential profitability of each customer and the opportunity cost of the room. This paper describes how revenue management can be combined with customer relationship management (CRM) practices in gaming to maximise the overall property revenue. An overview of CRM in gaming is provided, followed by a discussion of effective room allocation in the industry and an assessment of the requirements for revenue management implementation in casinos.

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Correspondence to Rom Hendler.

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1Rom Hendler obtained a BS in Hotel and Food and Beverage from Hebrew University of Jerusalem. He went on to obtain an MBA specialising in Hospitality Management from Cornell, Paris. His past positions include assistant general manager and group manager/sales and marketing in Club Mediterranee, junior consultant with Horwath Consulting — Barcelona, Spain, and a teaching assistant for yield management, hospitality corporate finance and quantitative methods. In his current position at The Venetian Resort Hotel and Casino, Las Vegas, he oversees direct marketing and database analysis as well as revenue management for the 4,000-suite property. He controls the strategic pricing of the room inventory, which casino patrons qualify for rooms on a daily basis as well as the inventory allocation to the di.erent market segments in order to maximise overall property profitability

2Flavia Hendler is currently pursuing a PhD in hospitality at the University of Nevada Las Vegas. She has a production engineer degree from the Escola Politecnica da Universidade de Sao Paulo, Brazil, and a Masters degree in hospitality from UNLV. She has worked in the casino industry in Paraguay and in database marketing in Las Vegas.

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Hendler, R., Hendler, F. Revenue management in fabulous Las Vegas: Combining customer relationship management and revenue management to maximise profitability. J Revenue Pricing Manag 3, 73–79 (2004).

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  • revenue management
  • gaming
  • CRM
  • casino marketing
  • pricing
  • yield management