Course Methodology
This course will provide participants with activities concerning the knowledge, skills, and competencies required to develop and execute fundamental revenue management processes in their organizations. Also, participants will learn how to integrate multiple data sources and analyze them to improve business performance through price optimization, demand forecasting, availability control, and inventory allocation.
Course Objectives
By the end of the course, participants will be able to:
- Gain insight into revenue management principles.
- Apply different forecasting methods to drive future demand.
- Develop the right pricing strategy and relevant measures.
- Optimize the use of existing inventory through proper allocation and capacity control.
- Discuss the key trends in revenue management for different businesses.
Target Audience
This course is designed for marketing and sales department heads and managers (B to B and B to C), business professionals, business owners, entrepreneurs starting a business, and any professional with business experience wishing to update their skills and learn new revenue management and pricing techniques.
Target Competencies
- Forecasting
- Inventory management
- Analytical thinking
- Financial decision making
- Strategic insight
- Pricing strategies
- Negotiation skills
- Communication skills
- Statistical analysis
- Economic savviness
- Margin analysis
What is revenue management (RM)?
- Definition and a brief history
- Objectives, principles, and elements of RM
- Necessary conditions for revenue management
- Revenue management vs. yield management
- The importance of revenue management
- RM terms and performance indicators
Pricing strategies
- Introduction to pricing strategies
- Business foundations for successful pricing strategies
- Pricing – perspectives from different industries
- Value-Based Pricing
- Types of pricing strategies
- Key KPIs behind pricing strategies
- Common mistakes in pricing
RM and Forecasting
- 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
- Overbooking
- A quick introduction
- Policies concerning overbooking
Inventory allocation and capacity control
- The basics of inventory allocation
- Expected marginal revenue
- Nested reservation system
- Protected level vs. booking limit
- Group management
Implementation of revenue management systems
- How can a revenue management system help
- Features of a revenue management system
- Revenue management and data sources, analytics, and visualization
