Cosmopolitan CEO Bill McBeath on Strip Competition and Boosting the Bottom Line

[Evoni]

For those of us who stay at Cosmopolitan now and then I thought you would find this article interesting.

http://knpr.org/knpr/2015-12/cosmopo...ng-bottom-line

[Handpayhopeful]

Thanks for the article Diana.... Never realized the sportsbook even existed there. Now I know why.... Sure would be nice for a property to come straight out and say "We are loosening our slots to gain a competitive advantage"...


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[dvandentop]

Thanks for article.

Gonna try to get back on their radar this next trip

[Nhcris]

Thanks Evoni! Very interesting stuff.


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[boots]

Thanks Diana! Though I can't say I learned much from his quotes -- seems like a whole lot of spin going on. (Also, is it just me or does his head look like it was Photoshopped in from another photo?)

[hytail]

Interesting article on major operation thoughts @Evoni.

What still doesn't make any sense is why the major LV hotels ceo's talk about how smart/experienced and nimble they are but still manage to stumble over simple operations that drive guests away (or have to spend extra to keep customers or remedy situations). For example, a customer is attending a business meeting (not a semi leisure function combined with business like SEMA or Barrett Jackson) - they check in and then find out later that evening they have been placed in room impacted by the night club noise or the nearby rooms have been occupied with folks with a conflicting agenda to party in LV - you would think the CEOs would have enough sense to train their frontline folks to be alert for these potential conflicts to cover it on the front end. I have never had a front desk staff ask if I would like a room near the club noise or next to the animal house group. Haha.

So you clear out losing operations and add more slot machines, then give an interview leaning back in your chair, hands behind your head and feet on the desk and beam with the pride of improved slot revenue performance. Heck, add more machines and no doubt more revenues will be had. What I did not see at the Cosmo the last couple of days were people waiting to get on any particular machine.

My observation the last couple of days at the Cosmo is that they need to solve what image they want to portray to attract the customer they want. Baby boomer, gen x/y or melinium - the darkness, the music, the layout, the clubs, the machines/tables/sport book, etc., all generate the comfort with wanting to stay or gamble. One repeating story I hear/read is that student loans are having a severe impact on younger folks these days, so I just wonder what disposable money will be available to extract from the younger crowd.

Two things the ceo acknowledged that I thought as credible was Cosmo's need to solve the strip walk-in traffic and non-excitement on skill based gaming. Skill based gaming will need to solve ADA issues(weaknesses in skill due to age, mental and physical disabilities) because regulators will never approve that stuff if casinos try to profit off those with disabilities - the disadvantaged players. Never did understand that thing with the cat and its location right up front next to all the sidewalk traffic - shoot, just replacing the cat space with some machines would increase revenue since the cat was a negative on revenue - don't need to be a ceo to figure that out.

Other than the fantastic rooms, when I am in the Cosmo I don't feel an attraction to be there. I sure hope they solve their puzzle as this is a prime location I would love to enjoy the rooms and the property experience.


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