lOMoARcPSD|2668334
, lOMoARcPSD|2668334
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.
, lOMoARcPSD|2668334
3. How can revenue managers prevent accepting the ‘wrong’ customers?
What analytical tool does an organisation use to asses customer worth?
, lOMoARcPSD|2668334
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.
, lOMoARcPSD|2668334
3. How can revenue managers prevent accepting the ‘wrong’ customers?
What analytical tool does an organisation use to asses customer worth?
