Revenue Optimisation

This subject is available under ICMS undergraduate degrees, please click the button below to find an undergraduate course for you.

Subject Code:

THE302A/THE302B

Subject Rationale:

THE302A

Revenue optimisation is about becoming the architect of your own fortune. A hotel room, an airline seat or a restaurant seat is a perishable product. As a result, customer satisfaction and pricing remain the most important dynamic variables, which are subject to revenue management. In an increasingly crowded market, successful tourism, hospitality and event businesses must engineer maximum returns from predominantly perishable products and services constrained by capacity.

Revenue management provides a framework to implement strategies that optimise revenue in various industry related contexts. As a field of study, it draws together concepts from marketing, economics, finance and psychology. This subject will review the application of tools and techniques used to achieve the goals of revenue management and the financial tools used to measure the efficiency of such techniques. Students will analyse, the tension between the mechanics of revenue optimisation and consumer behaviour, psychological and ethical considerations and the social and political environment as just some examples.

THE302B

In the tourism, hospitality and events industries, revenue optimisation is critical for financial performance and long-term success. Hotel rooms, restaurant tables, airline seats and event tickets are all perishable products -once unsold, the opportunity to earn revenue is lost. Understanding how to manage these assets through strategic pricing and demand forecasting is a key capability for future industry leaders.

Through applied learning and real-world scenarios, students will develop the analytical and decision-making skills needed to design and implement effective revenue strategies. They will explore pricing models, forecasting techniques and performance indicators by drawing on insights from marketing, economics, finance and behavioural psychology. The subject also encourages students to critically examine how consumer behaviour, ethical considerations, technology and regulatory environments influence revenue outcomes. By the end of the subject, students will be prepared to make informed, ethical and commercially sound decisions in complex service environments.

Learning Outcomes:

THE302A

a) Explain the evolution of revenue management in the service industry.
b) Critically analyse revenue management strategies.
c) Prepare strategies that optimise revenue and performance in a range of industry related settings.
d) Assess the impact of legal, ethical and social issues on revenue management practices.

THE302B

a) Evaluate the evolution of revenue management in the service industry and its impact on business performance
b) Critically analyse revenue management strategies and their effectiveness in industry-related contexts
c) Design strategies that optimise revenue and performance in a range of industry-related settings
d) Assess the legal, ethical and social implications of revenue management practices

Student Assessment:

Note: (G) = Group assessment