LAS VEGAS—At first, digital displays were a way to differentiate a hotel from its competitors. Then, they were a cost-effective method for distributing information. And now? They’re revenue tools.
“Originally, digital signage was a wow factor. It was cool, it was fun, it was something different,” said Randy Dearborn, VP of multimedia and guest technology, MGM Resorts International. “It was also very expensive. Flat panels, when they first came out, were [roughly]$8,000 for a 40-in. plasma screen. Eventually, the pricing got to where you could justify digital signs with replacing print and have a dynamic aspect to them. That’s really where the explosion took off.”
David Levin, CEO/president, Four Winds Interactive, laid out some of the benefits of visual communications with guests. “It gives guests easy access to information on a variety of screens, and it enhances the guest experience and makes it more fun,” he said. “Because it is the same system that can be implemented in both the front and back of house, employees are able to see the same information that guests are seeing and can focus on how to make the guest experience better… Regarding operational benefits, visualizing key data or information that’s important to the business is effective at streamlining operations and operational effectiveness. Visual management has always been a key component of lean manufacturing and hospitality clients can achieve similar benefits using visual management in their back-office operations.”
Recently, MGM has found success with more interactive signage like Twitter and Instagram walls. “I’m stunned at the amount of usage those things get,” said Dearborn. “But, where it’s really headed now—and it’s been a tough battle that everyone is going through—is the analytical data. That’s the key to the castle. What are people looking at? What aren’t they looking at? How do you leverage all of that data that has just sat in a repository until now? There’s huge potential.”
MGM Resorts International, which partnered with Four Winds Interactive for its digital solutions throughout its U.S. properties (including all of its Las Vegas properties consisting of 42,000 hotel rooms, 350 food and beverage venues, three million sq. ft. of convention space and 1.5 million sq. ft. of casino floor), has implemented dynamic digital displays. These pull content from multiple sources to communicate information for guests regarding restaurants and menus, convention information, wayfinding, social media engagement and promotions at the right time. For example, a wayfinding sign can change depending on the time of day. “In the morning, it tells you where the café is or where the convention center is. As it gets closer to noon, it shows you restaurants. As shows let out, it shows you where the nightclubs are,” explained Dearborn. “Those signs are morphing throughout the day. At midnight, no one needs to know where the convention center or the pool are—they’re closed.”
“Dynamic content typically implies the separation between media and data,” said Levin. “By keeping data separate from media files, data is easy to change. Easy-to-change data can drive big benefits.” Examples include changing the pricing of menu board items, changing the min/max value of a table and updating screens when a meeting location has changed. “One of the most powerful aspects of our software is live data, and MGM has done a great job of using that functionality to its advantage,” he said.
“The key for MGM was having its graphics department create the graphic elements, but give individual F&B outlets control over their data,” continued Levin. “A great example is the big video wall that exists at the check-in/checkout area at the MGM Grand. It frequently shows content from Twitter, and the MGM F&B outlets figured out how to tweet their own specials to show up on that wall. They took control of using the visual communications network to maximize visibility and drives increased revenue.”
Dearborn noted that, because of the size and scale of the company, he knows very quickly if something is working. For instance, since implementing dynamic digital displays, MGM’s food and beverage operation has realized incremental revenue of $100,000. In addition, food and beverage promotions on table displays in resort lounges have generated 37% more sales.
“We pushed out an offer for one of our Cirque du Soleil shows and were able to track the offer, so we know it worked,” he added. The 10-day promotion was able to sell more than 1,000 additional tickets, resulting in increased revenue of $86,000.
According to Dearborn, right now is the most exciting time to be in the business because the solution has been proven out. “It ends all discussions. One of the biggest hurdles was getting operations to buy in, and that’s why I love the data part of it—it ends all of those arguments,” he said, adding that the company recently hired a chief analytical officer, which speaks to how important this trend is.
And, certainly, the ability to generate even more ancillary revenue is a boon in Las Vegas in particular, since the Las Vegas casino market these days typically sees 30% of its revenue from gaming and 70% from non-gaming— hotels, restaurants, shows and retail. Dearborn noted that this is true for MGM. He also said that Las Vegas hotels are uniquely able to market to their guests because they know exactly who is in town. “We know when the rodeo is in town. We know when the men’s apparel show is in, when CES is in town,” he said. “You go to Times Square, there’s a mass of humanity, but it’s a plethora of people. But, here, we know who is in town. It’s a huge advantage we have.”
The biggest challenge for Dearborn—now that the system has been proven to work—is balancing the different revenue areas. “What I worry about now is suddenly there’s this flood where everybody wants into the system— food & beverage, entertainment, retail, the hotel guys, the gaming guys,” he said. “It goes back to the old motto where you’re awash in offers. That’s the dangerous part: being able to, in a real-time way, push out specific things at specific times to specific people.” HB