Inside Asian Gaming

INSIDE ASIAN GAMING | December 2011 8 Cover Story its first real hook to lure mass crowds. GEG’s previous flagship since 2006, StarWorld Hotel & Casino on the Macau peninsula, had a very limited main gaming floor owing to the property’s tiny plot size, and by necessity, catered primarily to VIP baccarat players. The unveiling last year of a refurbished, Paul Steelman-designed main casino floor at StarWorld did little to boost that property’s mass-market appeal, suggesting size does matter when it comes to creating a crowd-pulling mass-market gaming venue. The expansive Galaxy Macau— occupying a land area of 550,000 square metres—has sufficient scale to house several mass-market attractions. In June 2011—the first full month of Galaxy Macau’s operation—GEG’s main gaming floor table revenue (excluding slots) more than tripled year-on-year. In October, it was almost four and a half times higher than in the year-ago month, suggesting Galaxy Macau’s mass- market business is gaining traction, with the opening-day crush of curiosity seekers giving way to regular, serious mass players. In contrast to their mass-market counterparts, VIP players seem content within cosy confines—as long as they receive excellent customer service. StarWorld punches well above its weight in Macau’s high roller segment, earning disproportionately large VIP baccarat revenue relative to its modest size and development cost—HK$3.4 billion (US$436 million). The property’s robust VIP baccarat performance is generally credited to GEG’s steadfast focus on anticipating and meeting its customers’ needs. Maintaining that focus As GEG President and COO Michael Mecca points out, “StarWorld has always been one of the most prominent VIP casinos anywhere in theworld, andour responsibility at Galaxy Macau was to ensure we gave that same focus to customer service in our mass business and premium direct business. And we had to make sure that all of our team members were geared toward that. “We wanted our mass players and premium direct players at Galaxy Macau to enjoy that same level of welcome and memorable experience as our VIPs have always enjoyed with us [at StarWorld]. Every guest on our mass floor is important to us.” Galaxy Macau still has a way to go in developing its mass-market business. In October, 17.5% of total table revenue at Galaxy Macau came from the main floor. Although that compares favourably with the mere 7.0% of total table revenue derived from the main floor at StarWorld in the same month, it is still short of the 22.3% of table revenue generated by the mass market industry-wide. GEG has a clear incentive to boost its mass-market business because it offers much better profit margins than the VIP sector, which in Macau is dominated by junkets to whom casino operators must offer sizeable commission or revenue share. Among the efforts to boost mass-market revenue at Galaxy Macau is the placement of a clearly demarcated high-limit area in the centre of the main gaming floor, in addition to the operation of GEG’s Galaxy Privilege Club loyalty programme, encouraging members to play more in order to move up the tiers of the scheme and qualify for greater benefits. Another segment GEG is seeking to expand is its premium direct business (consisting of high rollers who come to the casino directly, rather than through junkets), which also provides superior profit margins to junket-driven business. Premium direct players are catered for at Galaxy Macau’s Jinmen Club, containing 23 tables and six private salons, including one of the most luxurious such salons Inside Asian Gaming has visited, complete with its own private dining area, massage table and spa room. Spreading the word IAG toured Galaxy Macau on a recent Tuesday afternoon with Mr Mecca, and remarked on the crowds of visitors property-wide during a mid-week, non- holiday period. Mr Mecca responded: “The popularity of the property just keeps growing. The best promotion you can have is word of mouth. Whether it’s with the day- trippers or the premium guests, they’re our best promoters. Galaxy Macau creates memories for people, so when they go back home, they want to tell their friends they had a great experience here.” That experience begins from visitors’ initial glimpse of the property’s façade. “When you first look at it, you see a building that is majestic, that is palatial, and makes a promise to you that something incredibly special is happening inside.” Mr Mecca stresses that in order to provide guests the company’s coveted “World Class, Asian Heart” experience promised in its marketing campaigns, Galaxy Macau depends crucially on its 8,000 “vibrant, enthusiastic” team members, who “breathe life into the facility.” Both Galaxy Macau and StarWorld are known around the city for boasting the most striking, leggy female welcome ambassadors at their lobbies, ushering guests inside with beaming smiles. “They’re selected as much for their personality as for their profile,”says Mr Mecca.“All of the ladies posted around the property, they have big smiles, they welcome our guests, they take photos with them, they take photos of them, and they’re here just to make people feel welcome. So as soon as guests walk Centre stage—Galaxy Macau’s high-limit gaming area Warmwelcome—Galaxy Macau’s greeters are renowned for their friendliness