lOM oA RcPSD 266 833 4

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lOM oA RcPSD |266 833 4

HC Revenue management 1: the basis

Conditions for revenue management:

-perishable products/service -high fixed costs -low variable costs -limited and fixed inventory -time criterial -highly segmented Selling….

At the right price:

-price elasticity: how much does price influence the demand?

-cost and value based pricing -set various prices for various segments

-customer centric approach: place customers in the middle. Focus on their

needs&wants

The right product:

-segmenting should lead to differentiating

-implementing price conditions: price fencing

-price fencing is neccessary to prevent customers from buying the cheaper product

At the right time:

-displacement analysis:

• which customer will you except when one room left? Could you have

made more revenue by accepting different guests? What is the optimal business mix?-forecasting

-supply and demand: when do we offer what price & product?

To the right customer:

-segmenting -optimal business mix

In the right place:

-Inventory management, PUP WS Revenue Management 1

Questions from sheet:

1.What elements should an organisation look at to determine a price? What tools exist to deterime a ‘right’ price?

Elements: cost/value based pricing, competition,

forecasting Tools: bench marking, swot analysis

2.Why is it important for an organisation to understand customer worith and customer value?To analyze the optimal business mix, to offer the right price. 2 / 3

lOM oA RcPSD |266 833 4 3.How can revenue managers prevent accepting the ‘wrong’ customers?What analytical tool does an organisation use to asses customer worth?

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