Melbourne Cup - The TAB and your Business

November 2006

Over the past twelve months in particular we have seen an aggressive almost non-democratic approach by the new owners of the NSW TAB and the way they deal with hoteliers, particular country hoteliers, whom provide their service to country New South Wales at a loss and the demands they have placed on these venues to keep their TAB operations.

In some cases both in the metropolitan area and country New South Wales the TAB has been shown the door due to reduced commissions offered if a venue could not met the new platform of Platinum, Gold, Silver or Bronze class which was of major concern to these hoteliers, only for them to find that their gaming revenues increase, bar sales increased, and though they may have lost a small number of patrons, they have been able to hold the bulk of their customers and provide alternative facilities or entertainment.

In certain cases venues that had a TAB in 2005, but did not in 2006 still ran Melbourne Cup Day functions and attracted a completely different clientele for luncheons with sweeps and fashions of the fields being offered with increase in sales by up to 25% for the day.

This of course does not always hold true for larger TAB venues with sales over $40,000 per week, but it would appear hold true for TAB venues with sales up to $30,000 per week.

Interesting times for the TAB and Hoteliers in what is a market that is far different to that in Victoria.

John Williams

 

Send mail to bligh@jtw.com.au with questions or comments about this web site.
Copyright © 2007 JTW Group Hotel Brokerage & Valuation
Last modified: 03/06/08