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

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.