Hospitality Revenue and Yield Management

Course Description:

Revenue Management is critical to the hospitality industry due to the perishable nature of a service based product. The fundamental principles and concepts of revenue management that we will cover in this course are capacity management, duration control, demand and revenue forecasting, discounting, overbooking practices, displacement analysis, channel management, and pricing execution.

This course provides an introduction to both the theory and the practice of revenue management and pricing. Fundamentally, revenue management is an applied discipline; its value derives from the business results it achieves. At the same time, it has strong elements of an applied science and the technical elements of the subject deserve rigorous treatment. The plan of this course is to discuss both these practice and theory elements.

Building on a combination of lectures, case studies the course develops a set of methodologies that students could use to identify and develop opportunities for revenue optimization in different business contexts including the transportation and hospitality industries, retail, media and entertainment, financial services, health care and manufacturing, among others. The course places particular emphasis on discussing quantitative data-driven models and their implementations.

Learning Outcomes:

Upon successful completion of this course, students will be able to:

1. Have a thorough knowledge of revenue management, strategic pricing, customer’s perception of value, differential pricing, constraint supply, and the role of hospitality revenue manager.
2.  Forecast demand
3. manage inventory and prices
4. Manage distribution channel and administer various sources of rooms reservation
5. Know pricing strategies and various approaches to pricing
6. View how different organizations are utilizing specialized applications of revenue management and revenue optimizations principles.
7. Understand the importance of revenue management in various economic conditions.