The ‘killer application’ of revenue management: Harrah's Cherokee Casino & Hotel

The ‘killer application’ of revenue management: Harrah's Cherokee Casino & Hotel

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Article ID: iaor200947209
Country: United States
Volume: 38
Issue: 3
Start Page Number: 161
End Page Number: 175
Publication Date: May 2008
Journal: Interfaces
Authors: , , , , , , , , ,
Keywords: recreation & tourism
Abstract:

Harrah's Cherokee Casino & Hotel is an unusual example of the use of revenue–management (RM) techniques. Typical RM installations yield revenue improvements of between 3 and 7 percent. The Harrah chain has seen 15–percent improvements, with Harrah's Cherokee Casino & Hotel as the largest beneficiary—although it does not serve alcohol or have traditional table games. In addition, the RM techniques that the Cherokee uses, such as its pricing decisions and customer–segmentation rules, are different from those used in RM applications in other industries.

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