Quantitative pricing and revenue optimization

  • Teaching

    Details

    Faculty Faculty of Management, Economics and Social Sciences
    Domain Information Systems
    Code UE-EIG.00130
    Languages English
    Type of lesson Lecture
    Level Master
    Semester SA-2020

    Schedules and rooms

    Summary schedule Tuesday 13:15 - 16:00, Hebdomadaire
    Struct. of the schedule 3h par semaine durant 14 semaines
    Contact's hours 42

    Teaching

    Teachers
    Description

    Pricing and revenue optimization, also called revenue management, is a quantitative approach to setting and updating pricing and product availability decisions in a consistent and effective fashion. This approach has proven particularly successful in the airline industry, where fares and ticket offerings dynamically change as a function of the number of free seats, forecast of future demand and specific request characteristics. 
    Fostered by the development of online business and big data technologies, the adoption of revenue management has not only changed the airline sector but disruptively transformed the transportation, hospitality and advertising industries. In fact, revenue management is becoming increasingly important in a broad range of sectors including finance, retail and manufacturing.
    Through a mix of lectures, case studies and guest speakers, we thoroughly discuss tactical decisions related to pricing and capacity allocation faced by companies that have some power to divide their customers into segments and to charge different prices to each segment. We first introduce the basics on pricing with and without a capacity (also called supply) constraint, then discuss price differentiation aspects and look at revenue optimization problems including customer segmentation. From these single resource problems, we move to the network case, in which multiple resources are used to provide a service. We also address overbooking aspects for dealing with no-shows and cancellations, and discuss markdown management for clearance of the inventory.
    We typically use (relatively simple) quantitative models to address the revenue optimization problems under study. We therefore assume that the students have some basic knowledge of mathematical modeling and optimization including how to mathematically describe an optimization problem, how to implement it in a spreadsheet, how to get a solution, and how to interpret it.

    Training objectives

    The students gain a good understanding of the main issues and opportunities in pricing and revenue optimization, and learn to identify and exploit these opportunities in different business contexts.

    Softskills
    No
    Off field
    No
    BeNeFri
    Yes
    Mobility
    Yes
    UniPop
    No

    Documents

    Bibliography

    Textbook (mandatory): Phillips R.L., Pricing and Revenue Optimization, Stanford University Press, 2005.

  • Dates and rooms
    Date Hour Type of lesson Place
    15.09.2020 13:15 - 16:00 Cours PER 21, Room D130
    22.09.2020 13:15 - 16:00 Cours PER 21, Room D130
    29.09.2020 13:15 - 16:00 Cours PER 21, Room D130
    06.10.2020 13:15 - 16:00 Cours PER 21, Room D130
    13.10.2020 13:15 - 16:00 Cours PER 21, Room D130
    20.10.2020 13:15 - 16:00 Cours PER 21, Room D130
    27.10.2020 13:15 - 16:00 Cours PER 21, Room D130
    03.11.2020 13:15 - 16:00 Cours PER 21, Room D130
    10.11.2020 13:15 - 16:00 Cours PER 21, Room D130
    17.11.2020 13:15 - 16:00 Cours PER 21, Room D130
    24.11.2020 13:15 - 16:00 Cours PER 21, Room D130
    01.12.2020 13:15 - 16:00 Cours PER 21, Room D130
    15.12.2020 13:15 - 16:00 Cours PER 21, Room D130
  • Assessments methods

    Examen oral - SA-2020, Session d'hiver 2021

    Date 21.01.2021 08:00 - 22.01.2021 17:30
    Assessments methods By rating
    Descriptions of Exams

    Examination time: 90 Min.

    AUFDATIERUNG 16.11.2020 (Covid-19)
    neue Evaluationsform: mündliche Prüfung (15 Minuten)

    Examen oral - SP-2021, Session de rattrapage 2021

    Assessments methods By rating
    Descriptions of Exams

    Examination time: 90 Min.

    AUFDATIERUNG 16.11.2020 (Covid-19)
    neue Evaluationsform: mündliche Prüfung (15 Minuten)

  • Assignment
    Valid for the following curricula:
    Branche secondaire Master: informatique de gestion 30 [MA]
    Version: 2020/SA_V01
    Cours > Modules management > MAR: Marketing
    Cours > Module Wirtschaftsinformatik > DADS: Data Analytics & Decision Support

    Business Communication - Information Systems 90 ECTS [MA]
    Version: 2020/SA_V01
    Courses - 60 ECTS > Option Group > Information Management > Cours > Modules management > MAR: Marketing
    Courses - 60 ECTS > Option Group > Information Management > Cours > Module Wirtschaftsinformatik > DADS: Data Analytics & Decision Support

    Business Communication - Management 90 ECTS [MA]
    Version: 2021/SA_V01
    Courses - 60 ECTS > Chosen Option > Management > 30 ECTS parmi les modules : > MAR: Marketing

    Complementary learnings in SES
    Version: ens_compl_ses
    MA course offering for Mobility Students

    Data Analytics & Economics 90 [MA]
    Version: 2020/SA-v01
    Courses min 63 ECTS > Mandatory Modules (45 to 63 ECTS) > Module II: Economics of Markets and Organisations (Eco)

    Data Analytics 30 [MA]
    Version: 2020/SA-v01
    À choix 9 crédits ECTS > DADS: Data Analytics & Decision Support

    Economics 90 [MA]
    Version: 2021/SA_V02
    Information pour l'étudiant (à définir) > Business Economics > 369 - Option : "Business Economics"
    Information pour l'étudiant (à définir) > Quantitative Economics > 369 - Option : "Quantitative Economics"

    European Business 90 ECTS [MA]
    Version: 2017/SA_v01
    Courses - 63 ECTS > Modules - Min one extra module with 12 ECTS > One complete module taken from the following list > MAR: Marketing

    Gestion d'entreprise 30 [MA]
    Version: 2020/SA_V01
    Es müssen zwei der folgenden aufgeführten Wahlmodule belegt werden > MAR: Marketing

    Information Management 90 ECTS [MA] - SA/2019
    Version: 2019/SA_V01
    Classes - min. 45 ECTS > Modules management - max. 15 ECTS > MAR: Marketing
    Classes - min. 45 ECTS > Modules IT Management - min. 22 ECTS > DADS: Data Analytics & Decision Support
    Classes - min. 45 ECTS > Module IT and IT Management > DADS: Data Analytics & Decision Support

    Information Management 90 ECTS [MA] - SA/2020
    Version: 2020/SA-v01
    Classes - min. 45 ECTS > Module IT and IT Management > DADS: Data Analytics & Decision Support
    Classes - min. 45 ECTS > Modules management - max. 15 ECTS > MAR: Marketing
    Classes - min. 45 ECTS > Modules IT Management - min. 22 ECTS > DADS: Data Analytics & Decision Support

    Management 90 ECTS [MA]
    Version: 2017/SA_v01
    Courses: min. 63 ECTS > 3 modules with min 12 ECTS each > MAR: Marketing

    Management 90 ECTS [MA] - SA/2021
    Version: 2021/SA_V01
    Courses: min. 72 ECTS > Modules - min 54 ECTS > Groupe d'élément de validation du Module MAR > MAR: Marketing

    Marketing 90ECTS [MA]
    Version: 2021/SA_V01
    Courses > Groupe d'élément de validation du Module Marketing > MAR: Marketing

    Sciences économiques et sociales
    Version: 2018/SP_v01 ses_BeNeFri
    Course > MA course offering for BeNeFri Students

    1026 6 International and European Business 90 [MA]
    Version: 2021/SA_V01
    Courses > Modules > One complete module taken from the following list > Groupe d'élément de validation du Module MAR > MAR: Marketing