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HRTM71-205: Strategic Pricing and Revenue Management May 2018 [Standard]

General information

The focus of this subject is on hospitality industry pricing strategies and revenue management. This subject combines elements of yield management, technology, and data collection to produce an interactive approach to managing return. The financial methods for determining pricing structures and revenue optimization form the basis of the subject. Topics include pricing theory; marginal return measures; Rev Par; and competitive analysis. A simulated hotel package Hotel Operations, Tactics and Strategy (HOTS) is used to enable students to explore the revenue performance outcomes of key hotel management decisions they are responsible for making.

Details

Academic unit:Bond Business School
Subject code:HRTM71-205
Subject title:Strategic Pricing and Revenue Management
Subject level:Postgraduate
Semester/Year:May 2018
Credit points:10

Delivery & attendance

Timetable: https://bond.edu.au/timetable
Delivery mode:

Standard

Workload items:
  • Seminar: x12 (Total hours: 24) - Seminar
  • Computer Lab: x12 (Total hours: 24) - Computer Lab
  • Personal Study Hours: x12 (Total hours: 72) - Study time including review of materials.
Attendance and learning activities: Students should aim to attend all classes as class preparation and participation activities take place in all sessions and count towards the final grade for this subject. Students will work in groups regularly during computer laboratory/seminars where a system called HOTS will be used. Time must be spent outside of scheduled class time on subject preparation including completion of activities for the compulsory HOTS computer laboratory classes.

Resources

Prescribed resources:
  • David K. Hayes,Allisha Miller (2011). Revenue Management for the Hospitality Industry. Hoboken: John Wiley and Sons , 352.
After enrolment, students can check the Books and Tools area in iLearn for the full Resource List.
[email protected] & Email:[email protected] is the online learning environment at Bond University and is used to provide access to subject materials, lecture recordings and detailed subject information regarding the subject curriculum, assessment and timing. Both iLearn and the Student Email facility are used to provide important subject notifications. Additionally, official correspondence from the University will be forwarded to students’ Bond email account and must be monitored by the student.

To access these services, log on to the Student Portal from the Bond University website as www.bond.edu.au

Enrolment requirements

Requisites: ?

Nil

Restrictions: ?

Nil

Assurance of learning

Assurance of Learning means that universities take responsibility for creating, monitoring and updating curriculum, teaching and assessment so that students graduate with the knowledge, skills and attributes they need for employability and/or further study.

At Bond University, we carefully develop subject and program outcomes to ensure that student learning in each subject contributes to the whole student experience. Students are encouraged to carefully read and consider subject and program outcomes as combined elements.

Program Learning Outcomes (PLOs)

Program Learning Outcomes provide a broad and measurable set of standards that incorporate a range of knowledge and skills that will be achieved on completion of the program. If you are undertaking this subject as part of a degree program, you should refer to the relevant degree program outcomes and graduate attributes as they relate to this subject.

Find your program

Subject Learning Outcomes (SLOs)

On successful completion of this subject the learner will be able to:
  1. Conduct a competitor analysis and internal assessment of approaches to pricing for relevant hospitality market segments.
  2. Develop occupancy forecasts for the hospitality operation.
  3. Compare and contrast the various pricing and rate management strategies used by hospitality operators to maximise revenue.
  4. Evaluate the effectiveness of the pricing and revenue management strategies of selected hospitality operations.
  5. Develop strategies to maximise revenue for hospitality businesses.
  6. Summarise key revenue related operating statistics in hospitality.
  7. Evaluate management decisions which aim to maximise performance outcomes within a simulated hotel environment

Assessment

Assessment details

TypeTask%Timing*Outcomes assessed
Class Participation A series of activities will be conducted in class and/or online which students must show evidence of contributing to effectively. 10% Ongoing 1, 2, 3, 4, 5, 6, 7.
Written Report Individual Departmental Report on HOTS Hotel Progress 30% Week 5 4, 5, 6, 7.
Oral Presentation § Group Presentation on HOTS Performance and Future Planning 20% Week 7 1, 2, 3, 4, 5, 7.
Written Report § Group Report on HOTS Revenue Management Performance 20% Week 12 1, 2, 3, 4, 5, 6, 7.
Paper-based Examination (Closed) n/a 20% Final Examination Period 1, 2, 3, 4, 5, 6.
  • § Indicates group/teamwork-based assessment
  • * Assessment timing is indicative of the week that the assessment is due or begins (where conducted over multiple weeks), and is based on the standard University academic calendar
  • C = Students must reach a level of competency to successfully complete this assessment.

Assessment criteria

High Distinction 85-100 Outstanding or exemplary performance in the following areas: interpretative ability; intellectual initiative in response to questions; mastery of the skills required by the subject, general levels of knowledge and analytic ability or clear thinking.
Distinction 75-84 Usually awarded to students whose performance goes well beyond the minimum requirements set for tasks required in assessment, and who perform well in most of the above areas.
Credit 65-74 Usually awarded to students whose performance is considered to go beyond the minimum requirements for work set for assessment. Assessable work is typically characterised by a strong performance in some of the capacities listed above.
Pass 50-64 Usually awarded to students whose performance meets the requirements set for work provided for assessment.
Fail 0-49 Usually awarded to students whose performance is not considered to meet the minimum requirements set for particular tasks. The fail grade may be a result of insufficient preparation, of inattention to assignment guidelines or lack of academic ability. A frequent cause of failure is lack of attention to subject or assignment guidelines.

Quality assurance

For the purposes of quality assurance, Bond University conducts an evaluation process to measure and document student assessment as evidence of the extent to which program and subject learning outcomes are achieved. Some examples of student work will be retained for potential research and quality auditing purposes only. Any student work used will be treated confidentially and no student grades will be affected.

Study information

Submission procedures

Students must check the [email protected] subject site for detailed assessment information and submission procedures.

Policy on late submission and extensions

A late penalty will be applied to all overdue assessment tasks unless an extension is granted by the subject coordinator. The standard penalty will be 10% of marks awarded to that assessment per day late with no assessment to be accepted seven days after the due date. Where a student is granted an extension, the penalty of 10% per day late starts from the new due date.

Policy on plagiarism

University’s Academic Integrity Policy defines plagiarism as the act of misrepresenting as one’s own original work: another’s ideas, interpretations, words, or creative works; and/or one’s own previous ideas, interpretations, words, or creative work without acknowledging that it was used previously (i.e., self-plagiarism). The University considers the act of plagiarising to be a breach of the Student Conduct Code and, therefore, subject to the Discipline Regulations which provide for a range of penalties including the reduction of marks or grades, fines and suspension from the University.

Bond University utilises Originality Reporting software to inform academic integrity.

Feedback on assessment

Feedback on assessment will be provided to students within two weeks of the assessment submission due date, as per the Assessment Policy.

Disability support

If you have a disability, illness, injury or health condition that impacts your capacity to complete studies, exams or assessment tasks, it is important you let us know your special requirements, early in the semester. Students will need to make an application for support and submit it with recent, comprehensive documentation at an appointment with a Disability Officer. Students with a disability are encouraged to contact the Disability Office at the earliest possible time, to meet staff and learn about the services available to meet your specific needs. Please note that late notification or failure to disclose your disability can be to your disadvantage as the University cannot guarantee support under such circumstances.

Subject curriculum

An introduction to the role of revenue management in the hospitality industry will be provided. An overview of the subject and its assessment requirements will also be discussed. Required Reading = Chapter 1. Note that there is no second class this week

The concept of strategic pricing will be introduced and its relationship to guest value considered. Required Reading = Chapters 2 and 3. Additional readings may also be found on iLearn.

This computer laboratory class will introduce students to a simulated hotel software system known as HOTS. Students will work in teams during the semester using HOTS to practice implementation of revenue management and other key hotel decisions.

Activities, cases and group discussions will consider how hotels and resorts vary prices for their services based on guest characteristics and a range of other factors. Required Reading = Chapter 4. Additional readings may also be found on iLearn.

Finish test cycling. Overview of Staffing, Training and Advertising decisions in HOTS. Live cycling to start in this session.

This topic will introduce the typical strategies used by accommodation properties to forecast future guest occupancy levels. Required Reading = Chapter 6. Additional readings may also be found on iLearn.

Complete first 3 months of trading. Assessment of Financial Positions.

This topic will introduce a range of strategies used by hoteliers to manage their room inventory in a way that maximises the revenue potential of the property. Required Reading = Chapter 7. Additional readings may also be found on iLearn.

Continue analysis and team decision making. Bank Loan Requirements. Completion of first 6 months of trading.

A range of tools and applications will be considered that enable hotels and other hospitality operators to sell inventory through alternative distribution channels. Required readings = Chapter 8. Additional readings may also be found on iLearn.

Continue analysis and team decision making.

This class will enable groups to consolidate their HOTS hotel work to date in preparation for presentations later this week.

Students will present in groups on their performance to date in HOTS and outline their future plans which may also include substantiating the need for an additional bank loan if required.

A range of analytical methods available to assess the performance of revenue management strategies are introduced in this class. Tools commonly used by the hotel industry to monitor their revenue performance will also be demonstrated. Required Reading = Chapter 9. Additional readings may also be found on iLearn.

Review feedback on group presentations. Continue decision making and analysis of team's hotel performance. Complete any outstanding activities from Class 1.

This topic will explore applications of pricing and revenue management strategies and problems related specifically to the Food and Beverage sectors. Required Reading = Chapters 10 and 11. Additional readings may also be found on iLearn.

Continue decision making and analysis of team's hotel performance. Complete any outstanding activities from Class 1.

This topic will explore specific case studies of pricing and revenue management strategies and problems related to the Cruise, Spa and Luxury Resort sectors. Required Reading = Tranter et al (2008). Chapter 17 (available on iLearn).

Continue decision making and analysis of team's hotel performance. Complete any outstanding activities from Class 1.

This topic will explore specific case studies of pricing and revenue strategies and problems related to the Entertainment, Events and Theme Park sectors. Required Reading = Tranter et al (2008). Chapter 16 or 18 (available on iLearn).

Team's spend this class working towards their final reports based on completion of 2 years of trading of their HOTS hotel. Reports are due in Week 12.

This topic will provide students with an awareness of the challenges which typically face the Revenue Manager and pricing strategies, including addressing potential ethical issues related to pricing strategy. Required Reading = Chapter 5 (pp. 133-147). Additional readings will be provided on iLearn.

This topic will bring together all the skills students have learned to assess the overall application of Revenue Management to the pursuit of developing stronger hotel businesses. Required Reading = Chapter 13.This final class will review the key issues covered during the semester in preparation for the final examination.

Approved on: Nov 13, 2017. Edition: 1.0
Last updated: Nov 16, 2017.