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Playing 'Top Dollar' With Mandalay Bay's July 4th Offers

By Chuckmonster on Wednesday, 1st July 2009 2:24am
  » filed under Las Vegas  comments: 2

   

Over the past three weeks, Mandalay Bay has sent out a different July 4th holiday offer each week, with fluctuating rates and offer roll ups in each one. We've attempted to wade through the photoshop fireworks (rim shot... get it... photoshop fireworks? design dorques hi-five!) and present the solid data, in a fancy graph.

If you're looking for a booking for this weekend, I'm not exactly sure how helpful this analysis is going to be... our aim here is to detect marketing trends for possible use later. Since at least half of the MGM Mirage marketing and PR teams read our little blog (usually with furrowed brow and occasional smirk) posting the results here probably won't do much good anyways.

Mandalay Bay July 4th Deal

Mandalay Bay has sent out a version of this email with changing room rates and different roll ups at least three times over the last two weeks.

The first offer, sent July 17th touted Mandalay Bay rates starting at $109 and THEhotel starting at $129. The email made mention of two concerts on the beach : All American Rejects (tix $40) and Mystic Roots + fireworks (tix $20) in a separate panel of the email.

If you rolled your own package using the stuff they mentioned, the first offer would've penciled out like so:

Mandalay Bay $109 x 2 = $218
2 Tix to AAR = $80
2 Tix to MR = $40
Grand Total: $338

THEhotel $129 x 2 = $258
2 Tix to AAR = $80
2 Tix to MR = $40
Grand Total: $378

The second offer, sent July 25th rolled concert tickets into the price of the hotel room as a "package" and required a two night minimum. Mandalay Bay rates started at $189 and THEhotel starting at $239.

Offer #2 pencils out thusly:

Mandalay Bay $189 x 2 = $378 (including concert tickets, both nights)
THEhotel $239 x 2 = $478 (including concert tickets, both nights)

The third offer, sent July 30th was identical to the second offer, but with hotel rates adjusted. Mandalay Bay rates started at $149 and THEhotel starting at $189.

Offer #3 pencils out thusly:

Mandalay Bay $149 x 2 = $299 (including concert tickets, both nights)
THEhotel $189 x 2 = $388 (including concert tickets, both nights)

A quick recap:

Fiiiirst Offer!

Mandalay Bay : $338
THEhotel: $378

Seeecond Offer!

Mandalay Bay : $378
THEhotel: $478

Thiiiiird Offer!

Mandalay Bay: $299
THEhotel: $388

And the verdict is: Take the Third Offer! - assuming you have any interest in going to these concerts. If you don't... then take the first offer minus the tickets OR book somewhere else.

It is unclear if we can make hard and fast rules about how the MGM Mirage/Mandalay Bay marketing machine works based on this, but it does prove that taking the time to bust out the calculator will will save you at least a little money on room rates that could be used elsewhere.



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Comments & Discussion:

Do you attribute the variations solely to attempts to tweak the offer to maximize revenue as an event draws nearer. For example, if the offer is not selling the way they want it to, they repackage the offer at a lower net price. Sometimes I receive the same offer at different price points w/i a day. I think there might be different marketing/mailing lists corresponding to: 1) player's club; 2) previous hotel guests; 3) previous event/restaraunt attendees; 4) website signup; 5) low level slot play. Even the VIP offers may be from separate lists: 6) regular offer based on rated play; 7) casino/slot host mailing lists; and 8) we haven't seen you in a while list. It is not always clear what list the offer is based on.

you make a great point and provide a great analysis of possible reasons why rates change. the offers we eyeball are sent to an email address that isn't attached to a players card... as close to the baseline as possible.

my guess is that they tune up and re-blast offers if the response is below a certain percentage and/or room inventory is still available. its pretty clear that they overshot the markup with the first package roll up (#2) and readjusted to something more realistic in offer #3.

great comment p'earth.



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