The research, co-authored by Seul Ki Lee, an assistant professor at Temple University’s School of Tourism and Hospitality Management, analyzed monthly promotional allowance and expenditure data from 11 casinos inside the Atlantic City market place from 2008 to 2010. Atlantic City could be the second largest gaming industry within the U.S. along with the fifth biggest within the world. One of the most well-known complimentary offerings contain cost-free rooms, food, beverages, gaming credit and money. These binding promotions usually be provided mainly because they force travelers to remain in the providing casino to redeem the promotions. Less-popular travel reimbursement, bus and free of charge parking delivers are not as binding, therefore not straight benefiting the casino that problems them. But researchers located that casinos could see additional game wagers of $8.45 from every single dollar spent on their very own travel and parking promotions compared to only a $2.51 return on each and every dollar spent on room, food or beverage giveaways. In addition, a substantial a part of that $2.51 is accounted for by demand ‘taken away’ from neighboring casinos, implying that, from the market viewpoint, it’s distant from gain. Travel and parking promotions could create more demand by consumer spillover – an $11.19 return on the dollar – for the complete Atlantic City casino industry, which the researchers concluded has “the only economically feasible and good direct and neighbor effects on gaming demand.” “Serious gamers who come to Atlantic City each and every weekend will likely still come no matter if or not they are rewarded with totally free rooms or dining credits,” Lee mentioned. “These provides are not necessarily generating new demand for the market as a complete, but casino operators are reluctant to pursue promotions that might advantage the whole technique as an alternative to them exclusively.” The researchers recommend having a regional administration or unbiased third-party, such as a single marketing and advertising agency, to coordinate joint-promotion travel and parking programs because an agreement across the market could stop casinos from providing binding promotions when other people decide on not to. “Las Vegas presents itself as a destination as opposed to respective casinos,” Lee mentioned. “In the end, it’s extremely crucial for Atlantic City to match the efforts of Las Vegas or Macau in China for the reason that there’s competitors not just in the industry but among markets. Destination campaigns like the new ‘Do AC’ will be a good framework into which such marketing applications can be integrated.” Lee co-authored the research write-up with SooCheong Jang, an associate professor at Purdue University. “Spillover From Complimentary Item-Based Promotions: Evidence from Atlantic City,” appeared in the Journal of Hospitality & Tourism Research.