Revenue Management and Pricing Analytics

Catalog description

The practices of Revenue Management and Pricing Analytics (RMPA) use historical sales data to analytically estimate demand forecasts that are then used in optimization models to set and update capacity (or prices) through the various channels to specific customer segments in an attempt to maximize profits. The practice of segmentation has transformed the transportation and hospitality industries and are increasingly important in industries as such retail, telecommunications, banking, healthcare and manufacturing. However, while capacity-constrained industries such as the airlines and hotels typically optimize on the capacity to make available to each customer segment, price optimization (by customer segmentation in the forms such as seasonal time-based pricing; package-based pricing; channel-based pricing; and coupons, mail-in rebates, and promotion codes) is more frequently used for less capacity constrained industries such as retailing and banking. This course guides students & professional on how to identify and exploit revenue management and pricing opportunities in different business contexts. (Offered as an elective in the Business Analytics concentration of the Graduate School of Technology’s M.S. program in Data Analytics.)