The “Killer Application” of Revenue Management: Harrah's Cherokee Casino & Hotel

  • Authors:
  • Richard Metters;Carrie Queenan;Mark Ferguson;Laura Harrison;Jon Higbie;Stan Ward;Bruce Barfield;Tammy Farley;H. Ahmet Kuyumcu;Amar Duggasani

  • Affiliations:
  • Goizueta Business School, Emory University, Atlanta, Georgia 30322;Mendoza College of Business, University of Notre Dame, Notre Dame, Indiana 46556;College of Management, Georgia Institute of Technology, Atlanta, Georgia 30308;Harrah's Cherokee Casino & Hotel, Cherokee, North Carolina 28719;Revenue Analytics, Atlanta, Georgia 30339;JDA Software Group, Inc., Marietta, Georgia 30067;The Rainmaker Group, Alpharetta, Georgia 30022;The Rainmaker Group, Alpharetta, Georgia 30022;The Rainmaker Group, Alpharetta, Georgia 30022;The Rainmaker Group, Alpharetta, Georgia 30022

  • Venue:
  • Interfaces
  • Year:
  • 2008

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Abstract

Harrah's Cherokee Casino & Hotel is an unusual example of the use of revenue-management (RM) techniques. Typical RM installations yield revenue improvements of between 3 and 7 percent. The Harrah chain has seen 15-percent improvements, with Harrah's Cherokee Casino & Hotel as the largest beneficiary---although it does not serve alcohol or have traditional table games. In addition, the RM techniques that the Cherokee uses, such as its pricing decisions and customer-segmentation rules, are different from those used in RM applications in other industries.