King Abdul-Aziz University Tourism Institute (KAUTI) With Consulting Support of Ecole hôtelière de Lausanne (EHL)
1. Preamble Information
Course Title Accommodation V—Revenue Management Course Number HT 335 S4
Credit 1
Prerequisites None
Number of Hours 12 Classroom hours.
Facilitator Dr. Mohammad Abdulaziz.
Last Update 2012
2. Course Description
Hospitality is probably the most diverse but specialized industry in the world. It is certainly one of the largest, employing millions of people in a bewildering array of jobs around the globe. Sectors range from the glamorous five-star resort to the less
fashionable, but arguably more specialized, institutional areas such as hospitals, industrial outfits, schools and colleges. Yet of these many different sectors, catering has to be the most challenging.
King Abdul-Aziz University Tourism Institute (KAUTI) With Consulting Support of Ecole hôtelière de Lausanne (EHL)
Knowledge 1. Explain the philosophy and basic concepts surrounding a revenue management approach
2. Appreciate the customer price-value relationship, the power of price as a stimulator of demand and reaction to the dynamic marketplace with creative tools and solutions
3. Define the cost-volume profit relationship by discussing the role of fixed and variable costs in revenue management decision making
4. Utilise tools, calculations and benchmarks to manage hotel revenue such as PMS, budget, RevPar, RevPASH, RevPAU, marketing intelligence reports, competitor data and forecast accuracy
Competencies 5. Discuss managerial aspects for revenue management application in a hotel
6. Discuss the steps required to successfully install revenue management system
7. Appreciate how IT, people and hotel budgets or excessive cost cutting can affect the success of revenue management
8. Evaluate data management techniques and their effect on successful revenue management and judge different computerized revenue management systems
Mindset 9. Implement simple forecasting and optimization techniques by 9.1 Forecasting room night demand using pickup method 9.2 Using statistics to analyse, monitor and evaluate revenue
performance
9.3 Using demand control charts as a tool to make decisions on whether to open or close rate buckets
9.4 Setting up and employing linear programming in order to allocate capacity using a spreadsheet
9.5 Employing probabilistic approaches (bid pricing) for capacity-rate allocations
9.6 Carrying out overbooking calculations in order to develop possible overbooking policies for hotels
9.7 Setting up a decision model for group reservations and corporate allotment
10. Implement sales techniques, training and performance evaluation to achieve revenue management targets