Lecture: 2 hours
Seminar: 2 hours
Combination of lecture/seminar, case analysis and revenue management stimulation simulation exercise.
- 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
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.
|Case study analysis||10-20%|
|Group project and presentation(s)||15-20%|
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.