Displacement and Negotiated Pricing

Description

Group events, conferences and negotiated business bookings frequently account for over 50% of hotel room reservations. This course will prepare you to develop your own data-driven, systematic approach to group pricing.

You’ll also learn how to anticipate displacement—specifically how a property estimates the number of future arrivals that will have to be turned away when at capacity. Predicting transient business (non-group, individual business travelers) amid negotiated bookings is also a component when considering the effects of displacement on customer satisfaction.

Forecasting displacements and setting parameters for negotiating price will help you determine the number of rooms to allocate to each customer segment. Another key metric is win rate—the probability that a group will accept the quoted price—and the trade-offs to be made around profit margins.

Who Should Enroll in This Course?

This course is designed for general managers, revenue and finance managers, operations, sales, marketing and other hospitality professionals who are responsible for the financial performance of their organization. Professionals with at least 3 years of experience in their industry will see the greatest benefits. This course provides advanced instruction in revenue management and teaches the industry-critical skills and advanced techniques used by top performers the world over.

Enrollment

To register, contact an Enrollment Counselor at info@ecornell.com or 1-866-326-7635 (+1-607-330-3200 from outside the United States).

Certificate programs are eligible for eCornell Payment Plans. Discounts are available for military personnel, veterans, and Cornell University Alumni. eCornell programs are not eligible for financial aid or federal Pell Grants. Contact an enrollment counselor for more information.

Certificate Information

This course can be applied toward the following certificate:
 

• Advanced Hospitality Revenue Management: Pricing and Demand Strategies

Additional Information

Benefits to the Learner

Upon completion of this course you will be able to:

• Employ transient revenue management techniques and negotiated selling.
• Learn how to calculate optimal market mix.
• Determine the optimal mix of negotiated versus transient business.
• Evaluate requests for group/negotiated business.

Authoring Faculty

Chris K. Anderson, PhD, Associate Professor, Operations Management

Sponsoring School

Cornell University's School of Hotel Administration

Total Learning Time

Approximately 6-12 hours over a 2-week period.