Hashimoto: Casino Management: A Strategic Approach © 2008 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Chapter 13 LOCATION AND TRANSPORTATION Chang Lee, New Mexico State University

Hashimoto: Casino Management: A Strategic Approach © 2008 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Accessibility 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 All Rights Reserved. Casino Locations 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 All Rights Reserved. Location by Type of Market Convenience – located within easy driving distance from major urban areas, but not convenient by air. Pleasure – require long distance travel; convenient by air, but not located within easy driving distance from a major urban area. 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 All Rights Reserved. Transportation and Casinos Factors influencing travelers ’ choices of transportation: 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 All Rights Reserved. Modes of Transportation Preferred types of transportation shifted from cheaper to faster and more convenient. Air travel dominates long-distance and middle- distance 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 All Rights Reserved. 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 All Rights Reserved. Ground Transportation Rail transportation was major mode of travel in the U.S. until 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 All Rights Reserved. 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 All Rights Reserved. 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 All Rights Reserved. Importance of Location and Transportation in Casinos 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 All Rights Reserved. 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 All Rights Reserved. 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.