mbstone
Nov 1, 08, 8:36 pm
http://online.wsj.com/article/SB122506790177270673.html#articleTabs%3Darticle
[It] is tricky to make cuts in a business in which customers count on some level of extravagance. Harrah's customers have been especially spoiled by perks they earn through a loyalty plan, called Total Rewards, that is similar to airline frequent-flier programs.
"The question for Harrah's is: How to maintain profitability while maintaining the brand?" asks John Boushy, a former Harrah's executive. Harrah's is scrambling to cut costs where it can, laying off hundreds of employees, deferring development projects key to its growth plans -- like a Margaritaville-themed casino in Mississippi -- and trimming customer services. It is putting off refurbishment of casinos that need facelifts.
[It] is tricky to make cuts in a business in which customers count on some level of extravagance. Harrah's customers have been especially spoiled by perks they earn through a loyalty plan, called Total Rewards, that is similar to airline frequent-flier programs.
"The question for Harrah's is: How to maintain profitability while maintaining the brand?" asks John Boushy, a former Harrah's executive. Harrah's is scrambling to cut costs where it can, laying off hundreds of employees, deferring development projects key to its growth plans -- like a Margaritaville-themed casino in Mississippi -- and trimming customer services. It is putting off refurbishment of casinos that need facelifts.