Revenue Management in Hospitality

Faculty
Commerce & Business Administration
Department
Hospitality Management
Course Code
HOSP 3100
Credits
3.00
Semester Length
15
Max Class Size
35
Method Of Instruction
Lecture
Seminar
Typically Offered
To be determined
Campus
Online

Overview

Course Description
This course focuses on skills revenue managers require to manage revenue through demand and supply management, value propositions and pricing. Effective leadership in forecasting, demand analysis, market segmentation, purchase behavior analysis and distribution management are key areas covered. Key aspects of maximizing assets for a greater return on investment are examined. Analysis of political, economic, socio-cultural and technological forces is undertaken to predict opportunities for profit maximization.
Course Content
  • Introduction to Revenue Management
  • Strategic pricing
  • Value pricing
  • Differential pricing
  • The Revenue Manager's role
  • Forecasting demand
  • Segmentation and buyer behaviour
  • Distribution channel management
  • Specialized applications of Revenue Management
Methods Of Instruction

Combination of lecture/seminar, case analysis and revenue management stimulation simulation exercise.

Means of Assessment
Case study analysis 10-20%
Quiz(zes) 10-20%
Group project and presentation(s) 15-20%
Individual assignment(s) 20-25%
Final exam 30%
Total 100%
Learning Outcomes

Upon completion of the course the student will be able to:

  • Articulate the impact of supply and demand as well as the role of value in pricing.

  • Demonstrate how cost relates to the principles of pricing and the link between quality, service and price perceptions

  • Create differential pricing, given various demand scenarios.

  • Discuss how and why Revenue Managers must work as part of an effective team in order to achieve success.

  • Articulate the legal and ethical aspects of revenue management.

  • Explain how and why demand forecasting incorporates historical, current and future data.

  • Explain how market segmentation is used to optimize business and manage different demand scenarios.

  • Explain how and why distribution channels are managed in order to optimize results and how to manage inventory according to demand.

  • Apply case analysis to break down and evaluate revenue management situations, synthesizing information to drive profit maximization recommendations and decisions in order to best optimize results.   

  • Discuss how data is obtained and best used for revenue management decision making, control purposes and inventory allocation.

  • Differentiate between a rooms budget and forecast and explain the necessary steps to complete and manage each.

  • Perform and interpret basic Occupancy, ADR, RevPAR, IPC (index percent change) and PC (percent change) calculations.

  • Demonstrate how to read and interpret a STAR (Smith Travel Accommodation Report).

  • Explain the concepts of dynamic and open pricing.

Textbook Materials

David K. Hayes & Allisha A. Miller, Revenue Management for the Hospitality Industry, John Wiley, (latest edition)

or similar textbook(s) or materials as approved by the department.

Use of only Commerce and Business faculty approved calculator.

Requisites

Prerequisites

Corequisites

No corequisite courses.

Equivalencies

No equivalent courses.

Requisite for

This course is not required for any other course.

Course Guidelines

Course Guidelines for previous years are viewable by selecting the version desired. If you took this course and do not see a listing for the starting semester / year of the course, consider the previous version as the applicable version.

Course Transfers

Institution Transfer Details Effective Dates
Athabasca University (AU) AU ADMN 1XX (3) 2013/09/01 to -
Capilano University (CAPU) CAPU TOUR 200 (3) 2013/09/01 to -
College of the Rockies (COTR) COTR TRMP 2XX (3) 2013/09/01 to -
Kwantlen Polytechnic University (KPU) No credit 2013/09/01 to -
Simon Fraser University (SFU) No credit 2013/09/01 to -
Thompson Rivers University (TRU) TRU HOSP 3XXX (3) 2013/09/01 to -
University of British Columbia - Vancouver (UBCV) No credit 2013/09/01 to -
University of Northern BC (UNBC) No credit 2013/09/01 to -
University of the Fraser Valley (UFV) UFV BUS 2XX (3) 2013/09/01 to -
University of Victoria (UVIC) No credit 2013/09/01 to -

Course Offerings

Winter 2021

There aren't any scheduled upcoming offerings for this course.