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Fontainebleau has made some modifications to its customer loyalty club. It’s a shocker, and not in a great way.
The struggling but drop-dead gorgeous resort sent Fontainebleau Rewards members an e-mail that started with the phrase, “For added simplicity and transparency…” It’s well known anything that follows that phrase tends to be bad news.
As an example: “To add simplicity and transparency while only having a tumour in one of your testicles, we will remove both just to be safe.”
Here’s what Fontainebleau has to say: “For increased simplicity and transparency we will be making changes to Fontainebleau Reward.” You will begin earning Play Points on May 1, 2020, 8 am. These Play Points can be accumulated as free slot credits.
The benefits of being loyal include free play. The casinos are not required to reward players, but they do it to make sure that guests keep coming back.
It’s important to note that the differences between the two are not the same. Original calculation methods.
In the past, players earned 2 points per $1 rated on video poker and slots.
The Fontainebleau website states that “Rated Play” is determined “by average bets, game types and play length.” Theo, or theoretical loss is also known. Some players have told us they used to earn a point by paying $4-5. It’s a bit fluid.
Our calculations show that the new system is about 900% less favorable for players of video poker and around 1,900% less favorable for players of slots.
That’s right. You get $1 for each $1,000 you spend in coin.
Fontainebleau has a positive side to this: “The redemption values of Play points will stay unchanged. 100 Play points = $1 Slot Credit.”
Subtext.
I’m a little uncomfortable.
It means two things that we are tightening our belts.
Fontainebleau’s loyalty program is “too generous” and this was a mistake when the hotel opened. It shouldn’t be a surprise, as Fontainebleau had never run a casino.
Fontainebleau’s struggle to increase its revenue is also real. That’s due to pressure from the top, Jeffrey Soffer, Chairman and Chief Executive Officer of Fontainebleau Development. Soffer is also under pressure from Koch Industries who are the people that helped fund the resort and provided a $2.2billion construction loan.
It appears that the change to the loyalty program is a necessary but painful adjustment. This gives the impression of increased revenue, as the margins appear higher (you get less money for playing, so the revenues are up). Problem is, these loyalty club rewards are exactly what create loyalty. The casino industry is reliant on freebies and perks. The short-term fix to the bigger issue is cutting down on the benefits.
Fontainebleau faces multiple problems. It is located in a difficult area (there are no pedestrians), it has no marketing database for its hotel partners, nor does the company have a casino database.
With the dismissal and resignations a dozen top executivesFontainebleau gets a reality-check, as there are few signs that a plan is in place to surmount the seemingly impossible obstacles.
Please, don’t waste your money on outdoor advertising.
What would you say if you saw this advertising 101 QoD? pic.twitter.com/uV0sNLrWWi
— Vital Vegas (@VitalVegas) April 1, 2024
Fontainebleau hired Maurice Wooden, formerly with Wynn Resorts. He is not likely to have a gaming license. Fontainebleau was also recently licensed. Wynn Resorts sued Poaching is a crime.
Drama is glorious
Fontainebleau is a place we love, but where gambling has been a disappointment. You can find restaurants in the area. The results have been mixed. Don’s prime, for instance, is one the best steakhouses around. Mother Wolf, on the other hand, was disappointing (destination, but they seem to kiss their pasta with warm water and push the limits of acceptable “al-dente”). Fontainebleau still has 87 restaurants for us to sample.
The art at Fontainebleau is stunning, and the bar views are breathtaking.
Fontainebleau seems to be falling victim to the trap of tightening their belts. It’s odd that it won’t start paying off its debt until the middle of 2025. Pre-paid interest on the first two payments.
Fontainebleau is a place we will always be thankful for having opened its doors after 16 years of unfinished construction.
Fontainebleau will win. Although we wouldn’t suggest it, as a lay person, we won’t. See how it plays out.
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