Industry Expert Shares on How to Build Long-Term Relationships with Key Clients

Earlier, Instructor Mr. James Wong invited Dr. Raymond Lo, Senior Vice President, Head of International Marketing of Melco Resorts and Entertainment, to conduct a guest lecture for students enrolled in the Master of Science programme in “Luxury Hospitality and Health Service Management.” The session focused on sharing insights into how Macau's hospitality and gaming industries establish long-term relationships with key clients.

Dr. Lo began by noting that while the number of visitors to Macau has recovered year-on-year post-pandemic, their length of stay has shortened, and per-capita spending has shown a declining trend. He analyzed that since 2014, revenue from VIP room operations in Macau's casinos has significantly decreased. During the pandemic (2020–2022), gaming revenue declined annually, with 2022 hitting the lowest point since 2004. However, by 2024, mass-market revenue drove an overall recovery, reaching 79% of 2019 levels and surpassing VIP business revenue.

Dr. Lo elaborated on how his department collects and analyzes customer data to segment clients into different tiers, issuing corresponding VIP cards for each level. Simultaneously, clients are categorized based on their gaming preferences within the casino. Resources are then allocated, and personalized services are provided according to the client's preferences. For example, low-net-worth clients may receive discount coupons, while high-net-worth clients are offered dedicated butler services—all aimed at enhancing engagement and brand loyalty across different client segments.

Dr. Lo also mentioned that casinos periodically host exclusive, high-privacy events for top-tier VIP clients, such as collaborative exhibitions with luxury brands or dining experiences featuring world-renowned chefs. These initiatives are designed to strengthen support from high-end clients.

The measures outlined above are all grounded in data collection and analysis, enabling the development of tailored service strategies for different client tiers. The ultimate goal is to enhance customer loyalty to the brand and encourage repeat consumption.

Course instructor Mr. Wong added that customer loyalty is a critical focus in the service industry. It not only relates to repeat business but also aims to turn customers into vital channels for secondary marketing for the enterprise or brand. Through this seminar, students gained a deeper understanding of how Macau's hospitality industry enhances customer loyalty and further appreciated the significant role customer loyalty plays in the development of an enterprise or brand.