Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/27214
Title: A revenue management model for casino table games
Authors: Chen, M
Tsai, H 
Chen McCain, SL
Keywords: Casino
Intermittent demand
Revenue management
Revenue optimization
Table games
Issue Date: 2012
Publisher: SAGE Publications
Source: Cornell hospitality quarterly, 2012, v. 53, no. 2, p. 144-153 How to cite?
Journal: Cornell hospitality quarterly 
Abstract: Revenue management (RM) principles can apply to casino table games just as they do many other service industry operations. Creating a sound and feasible RM model for casinos relies foremost on the ability to create a demand forecast that accounts for the intermittent demand patterns of casino table games. Using a modified Croston's approach to forecast demand, this article proposes a revenue optimization model to help managers determine how many tables to open and what limits to set. Empirical tests of historical data for hourly demand at blackjack tables in a casino in Ontario, Canada, show that the theoretical win amounts derived using RM applications exceeded the theoretical win actually recorded by the casino. By recording players' betting patterns and speed of play, the casino industry should be able to use this model to improve on the current practice of opening and closing tables according to intuition and historic demand patterns. With the data in hand, casinos should be able to implement the model without substantial difficulty.
URI: http://hdl.handle.net/10397/27214
ISSN: 1938-9655
EISSN: 1938-9663
DOI: 10.1177/1938965511434323
Appears in Collections:Journal/Magazine Article

Access
View full-text via PolyU eLinks SFX Query
Show full item record

SCOPUSTM   
Citations

3
Citations as of Feb 12, 2016

WEB OF SCIENCETM
Citations

3
Last Week
0
Last month
0
Citations as of Aug 20, 2017

Page view(s)

52
Last Week
1
Last month
Checked on Aug 20, 2017

Google ScholarTM

Check

Altmetric



Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.