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Who should attend
- General managers
- Revenue managers
- Marketing managers
- Hospitality professionals responsible their organization's financial performance
About the course
Increasing sales and profits entails a comprehensive revenue-management strategy that includes creating and managing customer demand and establishing a marketing strategy built around rigorous control systems. Doing this better than the other players in the market will produce a clear, competitive yield advantage.
This certificate program consists of five two-week courses. The series builds on the fundamental principles of pricing and revenue management to give you advanced tools and techniques to make strategic hotel pricing decisions, set inventory controls, and encourage demand manipulation to drive profits and overall organizational performance. You can complete all five courses and earn your certificate in as little as three months.
This program was developed with revenue-management expert Christopher Anderson, PhD, associate professor in the School of Hotel Administration at Cornell University. Professor Anderson’s research focuses on revenue management and service pricing, and he advises world-renowned hospitality, service, and consumer goods firms on optimizing and executing their revenue-management strategies.
Price and Inventory Controls
Technology- and Internet-savvy consumer behaviors have fundamentally changed the way in which revenue is managed. This online course encourages those schooled or experienced in traditional revenue management to elevate and fine-tune their approach to price manipulation, length of stay, and demand and availability control. This curriculum will prepare students to succeed in this new, highly competitive hospitality landscape.
You'll investigate individual cases and strategies used by the world's top airlines, casinos, hotels and car rental businesses. Learn how these top companies optimize their price setting and inventory control measures to generate maximum profit and minimize systematic inefficiencies.
Price Sensitivity and Pricing Decisions
Pricing strategy is the central component in your overall profit performance. This online course prepares you to anticipate the impact certain pricing decisions will have on consumer demand and thrive in a highly competitive environment.
You'll learn to measure demand sensitivity to your price changes, measure the overall impact and even analyze and improve upon your competitors' strategies. See how pricing strategies in economic declines can bring volatility and bring about a "price war" situation, like that of the airline industry. This course also provides the tools to conduct a break-even analysis, which is used to determine a baseline volume and price that will generate positive revenue.
Closely aligned with the break-even analysis is the concept of price elasticity, which is the measurement of change in demand as it relates to a change in price. By measuring demand sensitivity, running a break-even analyses and forecasting price elasticity you'll be able to develop a measured, data-driven approach to pricing strategy geared toward positive revenue generation and sustained profitability for your operation.
The course Price and Inventory Controls is required to be completed prior to starting this course.
Segmentation and Price Optimization
Segmenting your customer base is critical to developing a variable pricing scheme. By identifying core groups of customers and their purchasing habits, you can target them accordingly by setting prices that will help you win their business over your competition. Without proper segmentation, however, dynamic pricing can backfire, which can alienate consumers and turn them into perpetual deal-seekers.
This course expands upon the central concepts in revenue management—RevPAR (Revenue Per Available Room) and RevPASH (Revenue Per Available Seat Hour)—with the goal of selling the right room or reserving the right table for the right person at the right time. Get your organization properly managing inventory and using market-based pricing to maximize revenue.
If you can achieve a workable segmentation and variable pricing scheme, you won't need to adjust prices as often. Many hotels and hospitality organizations have used stable prices to create a marketing advantage, by providing stable rates for customers who appreciate consistency. Finding the right mix in variability and stability in pricing, and setting upgrade policies, are what generate repeat business from happy customers and create an environment for sustained profitability.
Displacement and Negotiated Pricing
Group events, conferences and negotiated business bookings frequently account for over 50% of hotel room reservations. This course will prepare you to develop your own data-driven, systematic approach to group pricing.
You'll also learn how to anticipate displacement—specifically how a property estimates the number of future arrivals that will have to be turned away when at capacity. Predicting transient business (non-group, individual business travelers) amid negotiated bookings is also a component when considering the effects of displacement on customer satisfaction.
Forecasting displacements and setting parameters for negotiating price will help you determine the number of rooms to allocate to each customer segment. Another key metric is win rate—the probability that a group will accept the quoted price—and the trade-offs to be made around profit margins.
Search Engines and Online Selling: Stimulating Incremental Demand
Today's consumers rely less upon traditional travel agents and more on web-based research when booking travel. In this online course you'll learn to develop online strategies designed to improve your standing in Internet search results, called Search Engine Optimization (SEO), and increase your visibility to target customers.
Learn how to optimize your position on Internet search results and increase conversions: the moment when a search becomes a purchase. Online travel agencies are especially popular because they provide one-stop convenience and notifications for consumers searching for deals and promotional opportunities. The success of online travel agency is largely attributable to their marriage of leading-edge technology and a keen insight into consumer behavior patterns.
KEY COURSE TAKEAWAYS
- Estimate the marginal value of capacity
- Understand the effects of price, length of stay, demand, and availability controls on revenue
- Employ a strategic, proactive approach in pricing decisions
- Anticipate the reaction of your competitors regarding price changes
- Determine the best structure to post the right prices online
- Convey an understanding between transient revenue management and negotiated selling
- Know the role of online channels and the opportunities they provide in demand creation and management
- Effectively use and improve search engine marketing
WHAT YOU'LL EARN
- Advanced Hospitality Revenue Management: Pricing and Demand Strategies Certificate from Cornell Hotel School
- 40 Professional Development Hours (PDHs)
Chris K Anderson is a Professor at the Cornell School of Hotel Administration. Prior to his appointment in 2006, he was on faculty at the Ivey School of Business in London, Ontario Canada. His main research focus is on revenue management and service pricing. He actively works with industry, acros...
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