Strategic Pricing and Revenue Management

Strategic Pricing and Revenue Management

Strategic Pricing and Revenue Management

General Information

It is our mission to make pricing and revenue management in the hospitality industry more customer-oriented, more creative and more value-driven. We seek to learn how consumers of hospitality services perceive and process price information, and how they utilise price cues to form price judgments and make choices between alternative service offerings. In addition, we aim to learn more about market demand, with a specific focus on estimating room price elasticity, forecasting room demand, and improving forecasting accuracy. Our research directly contributes to the bottom-line and is relevant to industry, education and academia.

Through funding we help the hospitality industry to develop and implement pricing and revenue management performance through:

  • Academic Research
  • Training & Consultancy
  • Workshops and Education

Our hotel school students are sometimes involved in the above activities or are supervised by us in their research activities in the last phase of their degree programme.

Overview of some key projects:

  • Development of an online training programme to train Revenue Managers how to measure forecasting accuracy, in co-operation with IHG Intercontinental Hotels Group, Western Europe.
  • Development of a simulation tool to optimise conditioned and non-conditioned BARs over the booking horizon, in co-operation with Hilton Hotels & Resorts, The Netherlands.
  • Development of a city revenue optimisation tool (across brands for one hotel group/chain), in co-operation with Accor Hotels, The Netherlands.
  • Development of two revenue management tools for small and independent hotels in the Netherlands, including an automated rate positioning diagram and an occupancy forecasting tool, as well as a training programme and revenue management game, in co-operation with various hotels (e.g. CourtGarden, Mimosa, Dennenheuvel, Ros van Twente, Charme Hotels), and international academic partners (e.g. VirTech University, Cornell, VU Amsterdam).

Our Expertise

We specialise in price setting, pricing strategies, demand forecasting and hospitality revenue management training. We have advanced knowledge of consumer psychology, operations research, economics and pricing management, and the statistical techniques (e.g. discrete choice modelling, conjoint analysis) to determine user preferences and willingness-to-pay.

Faculty

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