Segmentation and Price Optimization

Description

Segmenting your customer base is critical to developing a variable pricing scheme. By identifying core groups of customers and their purchasing habits, you can target them accordingly by setting prices that will help you win their business over your competition. Without proper segmentation, however, dynamic pricing can backfire, which can alienate consumers and turn them into perpetual deal-seekers.

This course expands upon the central concepts in revenue management—RevPAR (Revenue Per Available Room) and RevPASH (Revenue Per Available Seat Hour)—with the goal of selling the right room or reserving the right table for the right person at the right time. Get your organization properly managing inventory and using market-based pricing to maximize revenue.

If you can achieve a workable segmentation and variable pricing scheme, you won’t need to adjust prices as often. Many hotels and hospitality organizations have used stable prices to create a marketing advantage, by providing stable rates for customers who appreciate consistency. Finding the right mix in variability and stability in pricing, and setting upgrade policies, are what generate repeat business from happy customers and create an environment for sustained profitability.

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:

• Make smart pricing decisions based on market segmentation.
• Evaluate the relationship between segmentation and discounting.
• Understand variable versus dynamic pricing.
• Predict the diluting impact of poor segmentation.
• Use inventory management, price optimization and market-based pricing techniques.
• Develop an upgrade policy, and evaluate its marginal value.

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.