The Fundamentals of Revenue Management: The Cornerstone of Revenue Strategy

About this course: With a fixed capacity, a highly disposable product and high fixed costs, hotels are a natural candidate for the application of revenue management. Originally developed by the airlines in the 1970s, these analytics-based techniques help predict consumer behavior at the hotel’s market level so that the hotel can sell each room each night at the optimum price. With modern-day rising acquisition costs and distribution complexities, revenue management techniques have increasingly been adopted by both small and large hotel companies, making a comprehensive understanding of segmentation, forecasting and pricing an essential requirement for today’s hospitality professionals. The purpose of this course is to provide a core understanding of the fundamentals of revenue management, which ties into the larger picture of revenue strategy. The course is structured to provide an insightful look into Revenue Management. Created in conjunction with Duetto, this course is hosted by a group of revenue management leaders in both theory and with hands-on experience at properties around the world. Upon completion of the course students should be empowered with industry best practices, which can be applied across the vast diversification the hotel industry to empower those to optimize profits. Duetto delivers powerful revenue strategy solutions to the world’s leading hotels and casinos, combining unparalleled expertise with world-class cloud-based technology. Acknowledgement: Bela Nagy, Agnes Roquefort , Jonathon Liu, Frederic Toitot, Pierrick La Masne, Markus Keller - ACCOR Simone Truscello - ACE HOTELS. Richard Valtr - MEWS SYSTEM. Jean-Luc Chrétien - FAST BOOKING. Jeannette Ho - FAIRMONT RAFFLES HOTELS & RESORTS. Chinmai Sharma - TAJ HOTEL & RESORTS. Cindy Estis Green - KALIBRI LABS. Jason Thielbar - RED LION. Christopher Cooper - ROCCO FORTE. Rom Hendler - SANDS. Rafi Rejerano - AB Hotels. Riko Van Santen - KEMPINKI HOTELS & RESORTS. Vinod Sukhija - BANYAN TREE HOTELS & RESORTS. Olivier Flement - WALT DISNEY COMPANY. Cidalia Pinto Coehlo - LOUVRE HOTELS. Trevor Stuart-Hill - REVENUE MATTERS. Vincent Cusma, Marco Benvenuti, Eric Stoessel, Gayle Ehrean, Nevin Reed - DUETTO. Claire Bertrand, Vincent Chatain, Jessica Moses, Benjamin Six (ESSEC Business School), Emilie Dupré (IMAGE-IN), Gregory Halidy (TRIPLAY)

Created by:  ESSEC Business School

• Taught by:  Peter O'Connor, Professor of information systems, Director of the MBA in Hospitality Management

  Information systems

• Taught by:  Augustin Cacot, Director of Customer Success, EMEA

  DUETTO

• Taught by:  Nathaniel Green, Senior Global Solutions Engineer

  DUETTO

Basic Info Course 2 of 4 in the Hotel Management: Distribution, Revenue and Demand Management Specialization Language English How To Pass Pass all graded assignments to complete the course. User Ratings 4.6 stars Average User Rating 4.6See what learners said Coursework

Each course is like an interactive textbook, featuring pre-recorded videos, quizzes and projects.

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ESSEC Business School For over a century, ESSEC has been developing a state-of-the-art educational program that gives the individual pride of place in its learning model, promoting the values of freedom, openness, innovation and responsibility. Preparing future managers to reconcile personal interests with collective responsibility, giving consideration to the common good in their decision-making, and weighing economic challenges against the social costs are some of the objectives ESSEC has set for itself. Its ultimate goal? To create a global world that has meaning for us all.

Syllabus


WEEK 1


Getting Started with Revenue Management



Welcome! In this first module, you will understand what revenue management is, why it’s important, simple steps to get started, how revenue management can increase profit through booking curve management and how effective yielding can improve a hotel’s profits. Moving forward, we’ll share best practices and better prepare you for today’s complex digital age.


11 videos, 4 readings, 3 practice quizzes expand

1. Video: Welcome back!
2. Video: Fundamentals of Revenue Management: The Cornerstone of Revenue Strategy
3. Video: EDC and the importance of Revenue Management
4. Video: History of Revenue Management
5. Video: Shift in consumer behavior
6. Reading: Complementary Readings
7. Practice Quiz: Practice Lesson 1
8. Video: Overview of Revenue Management
9. Video: Introduction to Segmentation
10. Video: Introduction to Forecasting and Budgeting
11. Video: Introduction to Pricing
12. Reading: Complementary Reading
13. Practice Quiz: Practice Lesson 2
14. Video: How Revenue Management can increase Bottom line
15. Video: Effective Yielding
16. Reading: Complementary Readings
17. Practice Quiz: Practice Lesson 3
18. Reading: Complementary Readings

WEEK 2


Introduction to Segmentation



In this second module we will discuss segmentation 101, four things to consider while determining segmentation, as well as our best practices in regards to working with properties who need to go through a re-segmentation exercise, and presenting you with some key takeaways.


9 videos, 2 readings, 2 practice quizzes expand

1. Video: Overview of Segmentation
2. Video: What is Segmentation?
3. Video: Evolution in Segmentation1
4. Video: Evolution in Segmentation2
5. Reading: Complementary Reading
6. Practice Quiz: Practice Lesson 1
7. Video: Types of Segmentation
8. Video: Strategic Segmentation
9. Video: Considerations of Determining Segmentation
10. Video: Re-segmentation Process
11. Video: Industry Best Practices
12. Reading: Complementary Readings
13. Practice Quiz: Practice lesson 2

WEEK 3


Introduction to Forecasting & Budgeting
In this third module, you will have an overview of forecasting and its basic terminology, explore forecasting goals, trends and tools, and understand how to link forecasting and budgeting together.


11 videos, 3 readings, 3 practice quizzes expand

1. Video: Introduction to forecasting and budgeting
2. Video: Basic terminology
3. Video: What is Forecasting?
4. Video: Why Forecast?
5. Reading: Complementary Readings and Videos
6. Practice Quiz: Practice lesson 1
7. Video: Start with Reservation and Market Data
8. Video: Competitor Pricing & Online Review Data
9. Video: Air Traffic and Weather Data
10. Reading: Complementary Readings and Videos
11. Practice Quiz: Practice lesson 2
12. Video: Revenue System vs Excel
13. Video: Evaluating Forecast accuracy
14. Video: Budgeting
15. Video: Best Practices
16. Reading: Complementary Readings and Videos
17. Practice Quiz: Practice lesson 3

WEEK 4


Introduction to Pricing



This last module should help tie together concepts from the previous three modules to give you a practical understanding of the fundamentals of revenue management. You will understand why pricing is important, the difference between common pricing strategies, and what are the 7 most common pricing mistakes. After that we will revisit the topic of Big Data, automated systems, and system connectivity as it and discuss best practices for pricing.


7 videos, 3 readings, 2 practice quizzes expand

1. Video: Overview and Basic Vocabulary
2. Video: Hotel Pricing Strategies
3. Video: How to increase Rates
4. Reading: Complementary Readings and Videos
5. Practice Quiz: Practice lesson 1
6. Video: Seven most common Pricing mistakes
7. Video: BAR vs Open Pricing
8. Video: Revenue Strategy: key to optimizing profit
9. Reading: Complementary Readings and Videos
10. Practice Quiz: Practice lesson 2
11. Video: Conclusion
12. Reading: If you want to go further...

Graded: Final Exam