Revenue Management is used by many service-based organisations to enable prices to be set strategically to maximise revenue and profitability. An understanding of revenue management practices will enable you to apply data-based decision making to answer important questions such as what to sell when to sell, who to sell to, and at what price. Topics covered include revenue management metrics; demand forecasting; value-based pricing; inventory management; distribution channel management; and competitor benchmarking. You will learn about the role of Revenue Manager and how this professional role interacts with and is influenced by, other departments within an organisation to optimise revenue outcomes. You will put your skills in revenue management into practice as you work in teams to manage a simulated hotel using the Hotel Operations, Tactics and Strategy (HOTS) system to implement strategic pricing and revenue management decisions.
|Academic unit:||Bond Business School|
|Subject title:||Strategic Pricing and Revenue Management|
Delivery & attendance
|Attendance and learning activities:||Attendance at all class sessions is expected. Students are expected to notify the instructor of any absences with as much advance notice as possible. Students will work in groups regularly as they operate a simulated Hotel system called HOTS. Time must be spent outside of scheduled class time on subject preparation including completion of activities for the compulsory HOTS rrequirements.|
|Prescribed resources:|| |
|[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
Assumed knowledge is the minimum level of knowledge of a subject area that students are assumed to have acquired through previous study. It is the responsibility of students to ensure they meet the assumed knowledge expectations of the subject. Students who do not possess this prior knowledge are strongly recommended against enrolling and do so at their own risk. No concessions will be made for students’ lack of prior knowledge.
Assumed Prior Learning (or equivalent):
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.
Subject Learning Outcomes (SLOs)
On successful completion of this subject the learner will be able to:
- Critically evaluate the competitor environment with regards to customer value and pricing strategy.
- Develop and justify demand forecasts for accommodation businesses.
- Compare the pricing and rate management strategies used by service organisations to maximise revenue.
- Evaluate the effectiveness of the pricing and revenue management strategies of accommodation and service-based businesses.
- Implement strategies to maximise revenue for accommodation services.
- Interpret key revenue management metrics for accommodation and service based businesses.
- Demonstrate effective contribution to a team which is responsible for implementation of management decisions intended to maximise revenue in a simulated hotel.
|Class Participation||Completion of online activities and discussion questions.||30%||Ongoing||1, 2, 3, 4, 5, 6, 7.|
|Written Report||Individual Departmental report on first quarter’s revenue and operational performance of allocated simulated hotel.||30%||Week 5||3, 4, 5, 6.|
|Oral Presentation §||Executive Management Team Oral Presentation of the first 9-months’ revenue and operational performance of allocated simulated hotel.||10%||Week 7||2, 3, 4, 5, 6, 7.|
|Written Report||Individual Report on 2-Year revenue and operational performance of allocated simulated hotel.||30%||Week 12||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.
|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.|
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.
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.
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.
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.
Additional subject information
A peer-evaluation system will be used in this subject to help determine the individual marks for all group assessments. As part of the requirements for Business School quality accreditation, the Bond Business School employs 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.
An introduction to the role of revenue management in service industries will be provided. Subject expectations will be outlined along with a detailed overview of subject assessments.
The concept of strategic pricing is introduced and its relationship to customer value is considered.
Activities, cases and group discussions will consider how accommodation and other service-based businesses vary prices for their services based on customer characteristics and a range of other factors.
How does a service business know how many customers to expect? The typical strategies used by accommodation businesses to forecast customer demand will be explained.
What is the most profitable way to manage a service’s inventory? The techniques used to manage inventory in a way that maximises revenue are explored to answer this question!
A range of tools and applications will be considered that enable accommodation and other service operators to sell inventory through a diverse set of distribution channels.
A range of analytical methods available to assess the performance of revenue management strategies are considered. Tools commonly used by the accommodation industry to monitor their revenue performance will also be demonstrated.
Applications of pricing and revenue management strategies specific to Food and Beverage services will be explored.
A range of case study applications of pricing and revenue management strategies specific to the Cruise Industry and Luxury Day Spa sector will be explored.
The diverse applications of revenue management will be reinforced as a range of case studies from the entertainment, sports and events sectors are considered.