About the course
Pricing and revenue optimization have been used at airlines and hotels for a long time, while markdown management systems are in a period of rapid adoption at retailers. Dynamic and customized pricing are also being developed for a number of other industries.
The course “Pricing and revenue management” provides a comprehensive introduction to how various companies should set and (frequently) adjust their prices on goods, services, and events, in order to maximize profitability. With increasing competition within most business areas, price is one of the most important variable in order to improve operating profit.
Examples of topics that will be covered in the course are:
- Basic price optimization
- Price differentiation
- Pricing with constrained supply
- Revenue management
- Markdown management
- Customized pricing
Additionally, the course will briefly include the topic “price hedonism”, where the objective is to analyze what attributes, and to what degree, they contribute to the overall price on various goods and services.
One of the most important goals for the course is to provide the students with the insights and tools that enable them to help a future manager to identify and capture pricing and revenue optimization opportunities. Pricing and revenue management is a relatively new and “hot” topic, and there are potentially many interesting research questions that can be addressed in Master theses. It would be particularly interesting to apply many of the now known techniques on pricing and revenue optimization to new (local) markets. Analyses of potential improvements in operating profit for local businesses within the tourism and event industry would be particularly interesting.
Basic understanding of business economics.