Revenue Management

N/A

The Revenue Management course unit consists of theoretical lectures and problem solving classes, some of them through the use of a Revenue Management System. Students will be encouraged to participate in classes with their own proposed problems, according to their observation, so they can reflect and research about it, as well as by comparing it with the diverse contents learned throughout the course. It is intended that this way students can apply acquired concepts and theories in specific situations. The assessment will be continuous, based on two assessment sheets, which will take place in the 4th and 6th class of the course. The continuous assessment model focuses on: participation and attendance (P&A), ability to solve practical exercises (PE), and preparation of two assessment sheets (AS). The final grade corresponds to the weighted average: 35% P&A + 15% PE + 50% AS. The student is approved with a final grade higher than 9.45 values.

1) To identify revenue maximization opportunities, seeking to promote a culture of revenue management in the organization, from the framing of this discipline in the organization’s strategy to the daily responsibilities and tasks;
2) To implement the main tasks and tools of Revenue Management in the daily activity of Hotel Management, namely:
• Analyze key performance indicators
• Take yield management measures • Understand and prepare a revenue forecast
• Prepare and conduct Strategy Meetings
• Structure the processes of organizational communication;
3) To apply the knowledge acquired in the preparation of a Strategic Plan adjusted to the reality of the hotel unit, which will include the components of Revenue Management;
4) To create a flexible Pricing Structure, based on market segmentation that allows optimizing the business mix at each time of the year.

1. Revenue Management Basic Concepts
1.1. Inventory Perishability
1.2. Limited capacity
1.3. Seasonality
1.4. Price sensitivity
1.5. Law of Supply and Demand
2. Revenue Management: From Analytical to Strategic Approach
2.1. Revenue manager profile
2.2. Evolution of the Revenue Management role in organizations
3. Variables to consider for pricing
3.1. Price Structure vs. Distribution Channels
3.2. Strategic plan
3.3. Action Plan
3.4. Prediction
3.5 Yield management
4. Development of the Strategic Plan
4.1. External Analysis
4.2. Internal Analysis
4.3. Analytical data
4.4. Segmentation
4.5. Strategic Guidelines
5. Revenue Plan
5.1. Behavior patterns
5.2. Strategic Guidelines
6. Forecasting and Control
6.1. Forecasting Models
6.2. Yield management

• - Practical Exercises - 15.0%
• - Attendance and Participation - 35.0%
• - Frequency - 50.0%

NAO

Cross, Robert G. (1997). Revenue Management: Hard-Core Tactics for Market Domination. New York: Broadway Cross, Robert G. & Higbie, J. & Cross, D. (2009). Revenue Management’s renaissance: a rebirth of the art and science of profitable revenue generation. Cornell Hospitality Quarterly Lindon, Denis & Lendrevie, Jacques & Lévy, Dionísio, Pedro & Rodrigues, Joaquim Vicente (2004). Mercator XXI Teoria e Prática do Marketing Bayoumi, A. E.-M., Saleh, M., Atiya, A. & Aziz, H. A. (2013). Dynamic pricing for hotel revenue management using price multipliers. Journal of Revenue and Pricing Management Iyengar, A. & Suri, K. (2012). Customer profitability analysis – Na avant-garde approach to revenue optimisation in hotels. International Journal of Revenue Management Beck, J., Knutson, B., Cha, J. & Kim, S. (2011). Developing revenue managers for the lodging industry. Journal of Human Resources in Hospitality & Tourism