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.
Learning Activities
The methods of instruction for this course will include a combination of lecture/seminar, case analysis, and revenue management simulation exercise.
Means of Assessment
Assessment will be in accordance with the Douglas College Evaluation Policy.
| 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% |
To pass the course, students must achieve a cumulative grade of 50% on a weighted average basis in all non-group assessments as well as 50% overall in the course.
Students must write midterm(s) and the final examination to pass the course.
Students may conduct research as part of their coursework in this class. Instructors for the course are responsible for ensuring that student research projects comply with College policies on ethical conduct for research involving humans, which can require obtaining Informed Consent from participants and getting the approval of the Douglas College Research Ethics Board prior to conducting the research.
Learning Outcomes
Upon completion of this course, the successful student will be able to:
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Articulate the impact of supply and demand as well as the role of value in pricing.
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Demonstrate how cost relates to the principles of pricing and the link between quality, service and price perceptions
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Create differential pricing, given various demand scenarios.
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Discuss how and why Revenue Managers must work as part of an effective team in order to achieve success.
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Articulate the legal and ethical aspects of revenue management.
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Explain how and why demand forecasting incorporates historical, current and future data.
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Explain how market segmentation is used to optimize business and manage different demand scenarios.
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Explain how and why distribution channels are managed in order to optimize results and how to manage inventory according to demand.
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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.
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Discuss how data is obtained and best used for revenue management decision making, control purposes and inventory allocation.
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Differentiate between a rooms budget and forecast and explain the necessary steps to complete and manage each.
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Perform and interpret basic Occupancy, ADR, RevPAR, IPC (index percent change) and PC (percent change) calculations.
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Demonstrate how to read and interpret a STAR (Smith Travel Accommodation Report).
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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.