Report: Identifying customers and catering to needs

Analysts from Bernstein found that 42 per cent of Chinese customers, on their most recent visit to the MSAR, 'stayed at or gamed for a majority of their time at a Sands property'

The average Chinese gaming consumer is '36 years old, is more likely to be male, very likely lives in a Tier 1 or Tier 2 city, earns RMB19,000 per month (US$34,00 per year), and has visited Macau three times in the past 12 months, with a gaming budget of at least RMB20,000 (US$3,000),' state Bernstein analysts in their recent report.
They sought to quantify Chinese 'premium' consumption in the MSAR, noting that 'all Macau gaming spending can reasonably be called premium'. This is not to be confused with Premium Mass, but refers to the overall gaming and non-gaming spending by this demographic, in particular given their repeat-visit nature.

The most important factor in choosing which property in the MSAR to reside and gamble in is 'Functionality': the quality of the casino and that of its hotel rooms and non-gaming offerings.
The motivations for this functionality encompass status seeking: 'perception that the property is appropriate for the customer, the desire to increase tier of rewards programme, etc.', and can be targeted through 'organised efforts, including advertising, direct contact by a casino host, a travel agent’s package trip, trip planned via a junket agent, and rewards programme communication'. In addition, the property recommendations come from 'family, friends and business colleagues'.
While affordability is based upon ‘hotel room pricing, the opportunity to receive a free room, and increased personal wealth (which is linked to the willingness to spend more)'. Younger customers (21-29) are more driven by status motivators and are less sensitive to affordability motivators like room pricing, while customers aged 45 or older are more likely motivated by recommendations from friends, family members and colleagues.
'Motivation drivers are similar across income levels,' noted the analysts.

The analysts found that 42 per cent of Chinese customers, on their most recent visit to the MSAR, 'stayed at or gamed for a majority of their time at a Sands property', justified by the largest number of both hotel rooms and gaming tables amongst the six operators.
Wynn and Melco have the 'highest percentage of higher-income visitors,' with 'personal monthly income above RMB15,000', making up 84 per cent and 83 per cent of overall clientele, respectively. The group notes it expects Wynn to 'do well in the higher-end segments', while Melco's 'strength with younger customers may give the company a long-term advantage'.
Sands 'dominates as the brand of choice for visitors', while MGM 'needs to execute well on its expansion to Cotai,' which 'will be critical in determining whether MGM can step up into the upper tier in the race for China's gaming customers'.
SJM 'may have a long-term problem due to its aging customer base with a preference for the Peninsula environment' and must 'execute well' on its Grand Lisboa Palace.
Galaxy, in the long run, 'will develop a similar critical mass benefit (as Sands) as it expands Galaxy Macau (Phase 3 and builds a new integrated resort in Cotai (Phase 4)'.