2014FS: 53038 Quantitative Models in Revenue Management

Pricing and revenue optimization is a quantitative approach for managing and updating pricing decisions in a consistent and effective fashion. This approach has proven particularly successful in the airline industry, car rentals, hotel room bookings, etc., and is fostered by the development of e-commerce. This course – as part of the course cycle “Selected Topics in Decision Support” – introduces basics on pricing (finding optimal prices, the “right” price differentiation, etc.) and revenue management. It addresses capacity allocation of a single resource to multiple customer classes, network management (multiple resources), overbooking (allowing also for no-shows and cancellations), and markdown management (reducing prices to clear inventory). Textbook (mandatory): Phillips R.L., Pricing and Revenue Management, Stanford University Press, 2005. Course Targets: The course provides an introduction to Revenue Management. It is geared to students in Information Systems, as well as students in Management with quantitative orientation.