Transcript CHAPTER 13 LOCATION AND TRANSPORTATION

Chapter 13
LOCATION AND
TRANSPORTATION
Chang Lee,
New Mexico State University
Hashimoto: Casino Management: A
Strategic Approach
© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
Accessibility
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Casinos are designed to maximize economic
potential of the facility and a surrounding area.
The issue of placement concerns all decisions
involved in getting the right product to the
target markets.
Casinos approach their target markets differently
based on their level of accessibility.
Gaming industry has been spread out across the
country from two mega gaming cities, Las Vegas
and Atlantic City.
Hashimoto: Casino Management: A
Strategic Approach
© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
Casino Locations
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Location by Distance
Local casinos: those that mainly serve people
traveling less than 100 miles from home – small
towns or on Native American reservations
Nonlocal or tourist casinos: those that mainly
serve people who travel at least 100 miles from
home – Las Vegas
Hashimoto: Casino Management: A
Strategic Approach
© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.

Location by Type of Market
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Convenience – located within easy driving
distance from major urban areas, but not
convenient by air.
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Pleasure – require long distance travel;
convenient by air, but not located within easy
driving distance from a major urban area.
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Transit – located between pleasure and
convenience markets. Has no other facilities nor
easy access for air travelers; does not focus on
one specific potential market; instead they focus
on markets that have multiple characteristics.
Hashimoto: Casino Management: A
Strategic Approach
© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
Transportation and Casinos
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Factors influencing travelers’ choices of
transportation:
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Length of the trip
Number of people in the group
Amount of disposable time and income they
have for travel
Casinos need to identify ways to attract potential
travelers who have limited time in order to be
better positioned in the very competitive tourism
communities.
Hashimoto: Casino Management: A
Strategic Approach
© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
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Modes of Transportation
Preferred types of transportation shifted from
cheaper to faster and more convenient.
Air travel dominates long-distance and middledistance tourism.
Automobile dominates short-distance tourism.
People select transportation by considering
availability, frequency, cost, speed, and comfort.
Other factors include: affordability, length of
travel time, convenience, and how well marketed
the mode of transport is.
Hashimoto: Casino Management: A
Strategic Approach
© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
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Water Transportation
Consisted of ocean liners and riverboats cruising
rivers.
The ship is no longer an important mode of
passenger transportation.
Water transportation became less popular
compared to ground transportation as railroad
and automobiles were introduced.
Today, cruising by water is more of a form of
tourist attraction in and of itself, than a mode of
transportation.
Hashimoto: Casino Management: A
Strategic Approach
© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
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Ground Transportation
Rail transportation was major mode of travel in
the U.S. until 1920.
Its role became limited because infrastructure
did not advance as did that of the highway.
When the automobile made inroads in popularity,
railways began to lose market share.
Current development of high-speed trains will
improve the role of rail in regions that are
connected to highly populated areas.
The majority of travelers in most developed
countries travel in automobiles.
Hashimoto: Casino Management: A
Strategic Approach
© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
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Air Transportation
Took on important role as the number of
international travelers increased.
Since deregulated in 1978, airlines reduce prices
to attract travelers; however this caused a lack
of air services for small communities.
Is particularly important for current casino
industry, as market has expanded to include
business travelers.
The more people fly, the more flights can be
offered, and the more prices can be lowered.
Hashimoto: Casino Management: A
Strategic Approach
© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
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Air traffic hubs are designated as geographic
areas based on the percentage of total
passengers enplaned in that area.
A hub may have more than one airport in it.
This definition of hub should not be confused
with the definition used by the airlines where
there are hub airports; it is easier for travelers to
make a long distance trip to a casino.
Hashimoto: Casino Management: A
Strategic Approach
© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
Importance of Location and
Transportation in Casinos
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Destination choice is about money and time.
Destinations that provide accessible transportation
are in a better position to attract potential travelers.
Visitors who travel long distances to casinos require
overnight accommodations in the region.
Day-trippers bring business to the casino, but not
necessarily to other businesses in the area.
Areas that have a multifaceted transportation
infrastructure also have stronger marketing
advantages compared to the ones in rural areas.
Hashimoto: Casino Management: A
Strategic Approach
© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
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Casino Travelers
Because of easy access to casinos, people visit
destinations that provide more than just casinos.
The increasing number of business-related
travelers allows casinos near major airports to
take advantage of this convenient accessibility.
Casinos can fall into more than one defined
market.
On average, gamblers visit casinos about once
every two months.
Hashimoto: Casino Management: A
Strategic Approach
© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
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Casino Feeder States
Since there are casinos in almost every
state, casinos have become a major part of
leisure activity in the United States.
Communities that do not have convenient
transportation infrastructure such as major
hub airports, or those that provide multiple
mega casino facilities, tend to only attract
people from neighboring states.
Hashimoto: Casino Management: A
Strategic Approach
© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.