This unit introduces students to revenue management which is a demand based pricing system employed in the international hospitality and tourism industry. The use of revenue management is a critical factor in the setting of price in the hospitality and tourism industry and, coupled with information technology, especially the internet, is having long term strategic impacts on the industry. This unit also explores the role and function of the revenue manager, the key executive responsible for managing the pricing and supply policies in hotels, airlines and ground transport firms within the hospitality and tourism industry. Students will engage in a range of activities including practical problem solving sessions, team work, case study analysis, online learning activities, peer discussion and review, and self-reflection. This range of activities will help them critically review key roles and approaches to revenue management to optimise revenue management practices that may be employed in diverse local and global contexts.

Unit details

Location:
Study level:
Undergraduate
Credit points:
12
Unit code:
BHO3312

Prerequisites

BEO1105 - Economic Principles

BEO1106 - Business Statistics

Learning Outcomes

On successful completion of this unit, students will be able to:
  1. Critically review the role and importance of revenue management in hospitality, tourism and events;  
  2. Critically reflect upon the role and function of the revenue manager and revenue management in terms of its component parts, strategic factors and critical considerations;  
  3. Recommend, justify and manage analytical procedures including demand analysis, forecasting, pricing, and revenue optimisation that are appropriate to solve complex and unpredictable problems in businesses and support the long term strategic directions of organisations; and  
  4. Work collaboratively in teams to apply and present a broad and coherent body of knowledge grounded in current literature on revenue management practices to optimise revenue management practices in local and global contexts.  

Assessment

Assessment type Description Grade
Test Online Multiple Choice & Short Answer Quiz 10%
Case Study Simulation Case Study (Individual) 30%
Report Research Report 30%
Presentation Group Presentation: Instructor assessment (20%), Peer Evaluation (10%) 30%

Required reading

Segmentation, Revenue Management, and Pricing Analytics.
Bodea, T. and Ferguson, M. 2014,
New York, Routledge

Recommended Readings: Phillips, RL. 2005, Pricing and revenue optimization Stanford University Press, Stanford. Tranter, KA Stuart-Hill, T & Parker, J 2014 An introduction to revenue management for the hospitality industry : principles and practices for the real world/ Pearson, Essex. Talluri, KT & Van Ryzin, G 2004 The theory and practice of revenue management, Kluwer Academic, Boston, Mass.

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