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Macau operators, junkets compete for savvy customer

May 21, 2014 Newsdesk Latest News, Macau, Top of the deck  


Macau operators, junkets compete for savvy customer

Casino operators in Macau are improving their marketing strategies as customers from mainland China become more sophisticated, says chief marketing officer of Galaxy Entertainment Group Ltd Kevin Clayton (pictured, second left).

“Chinese consumers take pride in being informed. Visitors to Macau are increasingly selective and brand conscious,” Mr Clayton told an audience today at the Global Gaming Expo (G2E) Asia 2014.

The three-day conference began yesterday in Macau.

“Operators must carefully balance the need to chase additional revenues with margin improvements,” Mr Clayton said. “They must be confident on their ability to compete effectively on quality and customer experience, rather than have to buy market share for short-term gain.”

Competition in the Macau market is increasing and junket operators are also stepping up their game.

“We target a full spectrum of services to be provided to all VIP guests, which also include other destinations rather than just Macau,” said Anita Cheung (pictured, second right), management adviser at Tak Chun Group, a Macau-based junket operator.

Tak Chun Group has nine VIP rooms in Macau and one in the Philippines, at Solaire Resort & Casino in Manila.

Macau casinos are heavily reliant on the VIP sector, which accounts for more than 60 percent of annual gross gaming revenue.

Junket operators, also know as VIP room promoters, act as facilitators for the Macau casinos, guaranteeing a minimum amount of revenue from China’s wealthy gamblers.

“We focus very much in offering exclusive services to our guests in order to build a sustainable and loyal relation with the customer,” said Ms Cheung. “For junkets, it’s very important the human network and the word of mouth.”

Although most of the customers come from mainland China, junket operators focus their promotions in Macau, said Wayne Lio (pictured, left), senior executive at Tak Chun Group.

“This is to where the customers come. In China it’s more difficult for us to work. Customers come here and they see our promotions, logos and find out where they want to go when they return to Macau,” said Mr Lio.

Customers now have “an incredible amount of choice,” said Mr Clayton.

“Customers go to a junket as they go to a resort based on choice,” he added. “This is a growing market and with growth come increasing levels of complexity and of competition.”


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