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Pricing and Revenue Management

Pricing and Revenue Management

Code: PRM8RB001
Extent: 3 ECTS (81 h)
Timing:
Language: English
Level: Professional studies
Type: Free-elective

Prerequisites
Principles of Marketing and Sales, Basics of Travel and Tourism Industry, Basics of Business Mathematics (Excel), eCommerce in Hospitality and Tourism, Introduction to Hospitality and Tourism, Financial Accounting and Reporting, Tourism Management, Customer Oriented Development in Tourism, Strategic Management and Business development (studied prior or can be done simultaneously)

Learning outcomes
The objective is to provide understanding and tools of pricing and revenue management. Enhance students capabilities to use these methodologies to drive the efficiency, profitability and competitiveness of a service company. The course supports worklife-orientation, business management skills in an international settings with its holistic view to the hospitality and travel industries.

After successful accomplishment of the course the student should:
• understand that a successful business requires adequate revenues and a positive operational cash flow to generate profits
• pinpoint potential customer segments, anticipate needs and wants of customers, understand consumer behavior and their how these affect the business potential
• identify capacity bottlenecks and make adjustments to the business accordingly
• be able to utilize Ecommerce to support sales and marketing
• recognize the strategic impact of revenues to the business, organize resources accordingly and follow thru key strategic business decisions.
• use good interpersonal communication skills to communicate effectively
• be interested to put more emphasis on the commercial business development of a service entity
• understand revenue and profitability financials cause and effects and can discuss about these in a professional matter with all key stakeholders

Course contents
• Revision of managerial accounting basics related to revenue generation
• Principles of Customer insight, Business foresight and Business Intelligence
• Channel management and optimization
• Support functions responsibilities in terms of company wide profits and interrelationships
• Risk management and forecasting customer behavior
• Tools, means and key metrics
• Organizational change management from revenue perspective
• Introduction to strategic and operational decision making capabilities and prioritization
• New developments

The course provides an introduction to the principles of pricing and revenue management. Core of the course is correct capacity management, right pricing actions and optimum multi-channel sales approach. Issues like how to support other functions to succeed with good pricing and revenue management in the global market place, how an organization can create and sustain competitive advantage, how to understand the business environment will be dealt with.

Cooperation with the business community and other organizations
The course includes projects and assignments with serviced various companies. The substance content is kept updated with close co-operation with the industry, the consulting and the education substance experts.

International
The international partners for the course are educational institutions and coaching and consulting entities.

Teaching and learning methods
The course is conducted in a work-shop setting for all students. The timetables and needs of our partners are taken also into consideration the best possible manner.
Lectures 21 h
Self-study 59 h
The assessment of one’s own learning 1 h

In full-time study setting, for other types of set-ups breakdown may vary. Depending the amount of lecture time allocated, experience level of the students and latest development in the field of study more specific issues are raised with individual learning, facilitated group work, industry experts visits and case studies in order to allow the student to learn about the strategic options hospitality and travel businesses are facing.

Recognition of Prior Learning, RPL  (in Finnish AHOT)
The required skills and competences can be demonstrated by a skills examination.
For an AHOT-option a minimum of 2 years work experience in pricing, sales and marketing or revenue management in expert or managerial level are required.

Teacher with the main responsibility for the course
Aija Juvonen

Course materials
• The Price Advantage, Marn-Roegner-Zawada, Wiley-Finance, latest edition
• Introduction to Revenue Management for the Hospitality Industry: Principles and Practices for the Real World, Tranter & Parker, Wiley-Press, 2008

In addition there are materials used at the workshops, as well as, actual articles, research and study papers. These are communicated by the instructor at the beginning of the course.

Assessment
Course Assignments (individual and/or group)
Final Examination
Active Course Participation
The impact of different assessment criteria to the final grade will be told during contact hours.

Assessment focus
• Key principles, terminology, tools and methods of Pricing and Revenue Management
• Specific hospitality and travel industry related matters
• Active usage of latest and high quality reference and research materials
• Proactive attitude, thinking skills and communication capabilities
• Evidence of capability to apply learnt theories and practices

The course is evaluated on a scale excellent (5), very good (4), good (3), satisfactory (2), fair (1), fail (0). The assessment criteria is presented on a scale 1 - 3 - 5.

Grade 1
The Student can name basic terms, methods and principles of Pricing & Revenue Management. The student recognizes the hospitality and travel industries related specific features. The student is able to use basic information sources to support own learning of this substance. The student can apply basic pricing and revenue management techniques using personal guidance and under supervision of an expert.

Grade 3
The Student may apply the basic pricing and revenue management principles, methods and tools in an educational setting. The student knows how to solve basic problems and challenges of Pricing and Revenue Management for hospitality and travel industries. The student can use the quality resources for the knowledge transfer on the substance topic. The student can apply pricing and revenue management techniques using given instructions.

Grade 5
The student possesses critical reasoning on pricing and revenue management tools, methods and principles presented in the context of hospitality and travel industries. The student knows how to apply learnings in actual situation. The student has a proactive attitude in relation to the business development in hospitality and travel and can skillfully, without help, apply pricing and revenue management techniques and basic tools.