This short course provides students with an overview of this important discipline and is an ideal supplement to a marketing, front office, or general operations class.
A solid understanding of revenue management’s key concepts and the selective application of its most effective strategies and tactics have become mission critical for most hospitality operations. This NEW book explores the applicability of revenue maximization strategies and their operational aspects.
Readers will learn the difference between strategic and tactical revenue management and why that distinction is critical, the tools that are available to revenue managers and when to use them, the broad range of information needed to effectively maximize revenue, vital issues to consider before implementing revenue management tactics, how revenue management is often misunderstood and applied inappropriately, the significant potential consequences of using revenue management poorly, as well as the benefits it can provide when done well.
Course Description: This course will give students a basic understanding of the revenue management process. It addresses the proper use and importance of revenue management in hospitality operations and describes the wide range of elements that must be considered in order to use revenue management effectively.
Objectives: At the completion of this course, students should be able to:
- Explain the concept of revenue management and the history of its development.
- Identify the business traits that create the environment appropriate for the use of revenue management.
- Distinguish between strategic and tactical revenue management and explain why this distinction is important.
- Identify internal and external measures that can be used to judge a property’s performance.
- Discuss the challenges that managers have in determining the effectiveness of revenue management tactics and strategies.
- Explain how forecasting demand and room availability drives tactical revenue management.
- Identify ways to implement tactical rate management and stay controls to maximize hospitality revenue.
- Define capacity management and how to use it for revenue management.
- Perform and use displacement analysis.
- Explain how revenue management plays a role in generating demand and creating marketing strategies for a hospitality property.
- Explain how strategic pricing and revenue streams management contribute to revenue management efforts at the strategic level.
- Identify opportunities for strategic packaging and ways to manage distribution channels for the greatest effect.
- Describe the capabilities of automated revenue management systems.