REVENUE MANAGEMENT COURSE OUTLINE

TABLE OF CONTENTS

1. An Introduction to Revenue Management

      1.1 Introduction
      1.2 History
      1.3 Peoples' Express Airlines
      1.4 National Car Rental
      1.5 Defining Revenue Management


2. Demand-based Pricing

      2.1 Innovative RM pricing
      2.2 Examples of time dependent value
      2.3 Growing revenues through pricing
      2.4 A worked example: Fixed and Variable Pricing
      2.5 A worked Example: Dynamic Pricing
      2.6 Products that fit the dynamic pricing framework


3. Understanding Demand

      3.1 The demand curve
      3.2 Clustering and market segmentation
      3.3 The demand side of RM
      3.4 Demand models
      3.5 Demand curve estimation
      3.6 Booking curves
      3.7 Incorporating demand forecasting errors
      3.8 Revenue maximizing prices
      3.9 Exercises


4. Computing Revenue Maximizing Prices

      4.1 Single period example
      4.2 A two period problem
      4.3 Computing variable prices
      4.4 Dynamic price calculation
      4.5 Forecast errors
      4.6 Common Additional Constraints
      4.7 Market share
      4.8 The Revenue Management System
      4.9 Exercises


5. Pricing to Multiple Market Segments

      5.1 Market segmentation and "Clustering"
      5.2 Traditional market segments
      5.3 E-commerce segmentation
      5.4 Segmentation and pricing
      5.5 Exercises


6. Revenue Maximizing Pricing of Discount Packages

      6.1 The concept of discounts
      6.2 Optimum discounting
      6.3 The Concorde Hotel
      6.4 Revenue maximizing with discounts
      6.5 Concorde Hotel multi-period problem
      6.6 Further enhancing revenues
      6.7 Introducing overbooking
      6.8 Exercises


7. Managed Overbooking

      7.1 Introduction to overbooking
      7.2 Managing the overbooked customer
      7.3 Managing to minimize "no-shows"
      7.4 Determining overbooking limits
      7.5 Calculating the overbooking limit
      7.6 Exercises


8. Multiple Product Classes

      8.1 Allocating inventory to multiple product classes
      8.2 Managed upgrades
      8.3 Exercises


9. Management Issues

      9.1 Customer-related issues
      9.2 Employee-related issues
      9.3 Technical issues