newjerseynewsroom.com

It is imperative that the AC casino operators, the State of New Jersey, the AC Alliance, the CRDA and the ACCVB all put maximum effort into convincing a visitor friendly airline to start service into AC International from various Southeastern metropolitan cities. Atlanta, Jacksonville, Charlotte, Nashville, Norfolk-Virginia Beach, Richmond and Raleigh Durham have service from Southwest, Airtran, Spirit and jet Blue; all airlines that concentrate on FIT (frequent independent travelers), and packages for individuals, who are paying their own travel costs. This article mentions that our visitors are down from 35 million to 29 million last year; but the line run busses, that I started in fall 1978, mid-week days only without subsidy, have declined from 14 million in 2006 to 3.2 million last year. This is primarily because our largest markets, Philadelphia, New York City and North-Central New Jersey, now have their own gaming much more convenient to them in Eastern PA and at Yonkers and Aqueduct. This impact is most damaging to Atlantic City, mid-week. New markets are too distant to consider bussing, so we need a better way to attract markets from the South, where there are no convenient casino locations, with the possible exception of the Cherokee Indian Casino in Western North Carolina. Our current advertising campaign seems to be concentrating on some previous bases, Philadelphia, New York City, Baltimore and North-Central New Jersey, but they all have gaming that is much more convenient, so we need to find some new customers. And they are in the Southeast. It will require the guaranteed purchase of airline seats from AC casino operators, and some marketing and advertising support from the Alliance, but our future depends on air. Let’s Do It.

What air service also does is to provide customers who will require several nights in a hotel, multiple meals, retail purchases and yes casino play, that won't involve the same level of room and meal comps and giveaway’s, that our previous visitors learned to expect. For every 100, 000 air arrivals (averaging 2 nights stay), AC resorts should expect 110,000 to 120,000 room nights (based on 80% to 90% double occupancy), 350,000 to 400,000 meals, and $75 to $100 per night in casino losses. This adds up to $10 to $12 million in room revenues, $6 to $8 million in food/ beverage sales, and $15 to $20 million in casino win. The room department should take 60% to 70% of the revenues to the room department bottom line ($7 to $8 million); possibly $1 million in food/bev. profits; and $6 to $10 million in casino department earnings. This equates to variable profits of $14 to $19 million on average spending of $310 to $400 per air visitor. I am also assuming that new customers would not expect 30% to 50% of their casino losses to be offset with promotional allowances and costs, as is now the case. The first 6 months of 2012 saw Resorts, my old haunt; give back 51% of their win in promotional costs from a win that was already down over 50% from the same period in 2006. This was the year that slot casino opened in Pennsylvania and commenced the current AC death spiral. We can turn things around, with continued cost control and the start of commercial air service, to allow AC to replace our old day trippers with new visitors. And we should also consider that the convention trades, including corporate meetings, trade shows and association events prefer air to all other forms of transportation. So a new service from Atlanta or Raleigh-Durham opens AC to the rest of the country, while improving our ability to attract mid-week group business.