Fundamentals of Revenue Management and Pricing Strategy

Overview:

Introduction

Participants in this course will engage in activities relating to the knowledge, skills, and competencies needed to create and implement basic revenue management processes in their organizations. Participants will also gain knowledge about how to combine various data sources and analyze them to enhance business performance through price optimization, demand forecasting, availability control, and inventory allocation.

Course Objectives:

At the end of this course the participants will learn about:

• Gain knowledge of the fundamentals of revenue management.
• Utilize various forecasting techniques to influence future demand.
• Create the appropriate pricing strategy and pertinent metrics.
• Improve the use of current inventories through effective capacity management and allocation.
• Talk about the major trends in revenue management for various industries.

Targeted Audience

This course is intended for business professionals, business owners, entrepreneurs starting a business, marketing and sales department heads and managers (B to B and B to C), as well as any professional with business experience wishing to update their skills and learn new revenue management and pricing techniques.

Course Outline

Unit 1:What is revenue management (RM)?

• Definition and a quick overview
• Goals, guiding principles, and components of RM
• Conditions required for revenue management
• Management of yields vs revenue
• Managing revenue is important
• RM terminology and performance measures

Unit 2: Pricing strategies

• A description of pricing tactics
• Business principles for effective pricing tactics
• Different industry perspectives on pricing
• Pricing based on value
• Different pricing tactics
• Principal KPIs underlying pricing schemes
• Common pricing blunders

Unit 3: RM and Forecasting

• The economics of revenue management

  • The economics of revenue management
  • Demand management
    • Unconstrained demand vs. constrained demand
  • All about forecasting
    • What is forecasting?
    • Why is forecasting so important?
    • Booking curve and pickup forecasting
    • Forecasting methods
    • Error measurement
    • Useful forecasting tips

Unit 4:Inventory management and capacity management

• The fundamentals of inventory placement
• anticipated marginal income
• Protected level vs. booking limit in a nested reservation system
• group leadership

Unit 5: Adoption of revenue management techniques

• How a revenue management system can be beneficial
• A revenue management system's characteristics
• Data sources, analytics, and visualization for revenue management