Module 10 – The Foundations of Revenue Optimisation

Duration 2 hours approx

  • Learn the basics of economics in pricing, including the principles of supply and demand and the role of price elasticity
  • Ever wondered why some consumers just have to buy a 5 star room whatever the cost? Find out what type of consumer they are!
  • Want to know what pricing strategies are available to you rather than simply increasing the price when occupancy increases?


What will you learn?

This module introduces the principles of supply and demand and the price response function or price elasticity and how it influences pricing. We look at how elasticity can be measured and how it relates to the concept of willingness to pay, the implication of the Price Volume Trade-Off followed by the different pricing methodologies that exist, how they work and why differential pricing provides an opportunity to generate higher revenues.

What will you get

  • 8 easy to follow video tutorials introduce the economics behind pricing
  • Understand the concept of supply and demand, and willingness to pay
  • An introduction to different pricing methodologies and why they do and don’t work in real life
  • The maths behind differential pricing, how it can go wrong but also how it can make more money
  • ‘Test your Understanding’ with our Knowledge Check
  • Need some additional support? Become a member of Revenue Academy and join a live session here, and get some great discounts!

Content and Topics

1) Introduction

2) Topic 1 Revenue Optimisation and the price response function

3) Topic 2 Measuring the Price Response Function and Elasticity

4) Topic 3 Contribution Margin and Price Elasticity

5) Topic 4 Pricing methodologies

6) Topic 5 Differential pricing

7) Topic 6 Types of Differential Pricing

8) Summary

9) Knowledge check – 10 questions

This is for you if you

  • Are unsure about differential pricing , what it is and how it works
  • Want to know your options for pricing strategically and which methodology is best for you
  • Want to understand the pitfalls in operating a differential pricing strategy and how to work with them
  • Are an aspiring revenue manager within a hotel who wants to make a valuable contribution to optimise incoming revenues
  • Are a revenue manager that wants to fine tune your skills


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