The Cherokee denied his room request, although it has 183 unreserved rooms for that night, and gave Mr. Smith's reservation request has several unusual aspects.

Would you like me to make you a reservation at the Ramada? The room will be complimentary, of course.'įor those who have studied revenue management (RM), Mr. Smith, all the rooms at the Cherokee are booked. Probabilistically, this means that the Cherokee will net $140 profit on Mr. Historically, Joe Smith bets an average of $2,000 per night. This number identifies the customer as Joe Smith. Operator: 'May I have your Total Rewards number?' A returning customer calls.Ĭustomer: 'I'd like to reserve a room for tomorrow night.' It's a typical Thursday summer night at the reservations office of Harrah s Cherokee Casino & Hotel (the Cherokee): 183 of its 576 rooms are still unreserved for tomorrow night. Key words: linear programming applications hotel/motel industry perishable inventory gambling. 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.

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. Typical RM installations yield revenue improvements of between 3 and 7 percent. Harrah's Cherokee Casino & Hotel is an unusual example of the use of revenue-management (RM) techniques.

Harrah's cherokee casino annual revenue