Revenue Management and Pricing

Predicting consumer behavior at the property level while optimizing room inventory and price is crucial to maximizing revenue potential and profit maximization. The intangible elements of changing demand, the perishable nature of the hotel product, the complexity of the hotel business (different market segments, length of stay and use of other products) and the strength of competition require tracking and measurement. Managing yield, manipulating price, and making constant and rapid changes are accomplished by means of data analysis techniques. Revenue Management requires a commitment to a continuous systematic analysis of demand, competition and product/service offerings. Hotel professionals must be capable of utilizing data-analysis techniques and financial models to forecast consumer behavior, price, competition and the optimal mix of business during peak, shoulder and valley seasons. Using financial statement data in business analysis as the framework the course explores financial and cost analysis, demand forecasting and prospective business analysis.