Revenue Management & Pricing Analytics

Pricing is central to the modern business environment. Nowadays, the same product is accessible to consumers through different distribution channels, which (usually) target customer categories with different needs. In the case of services, there are options available, where the consumer chooses which service to use. It is not enough for companies to set the proper prices; they should revise them quite often. Price setting affects demand and acts as a control variable both in normal situations (indicative example is the setting of tolls on highways) and in abnormal situations, such as the recent pandemic and the Suez Canal blockage, resulting in the efficient utilisation of existing inventory and the limitation of shortages. A modern business should be able to adapt immediately to changes in consumer preferences and influence demand to achieve its goals.

The course aims to introduce the students to topics related to revenue optimisation and revenue management and the appropriate selection of prices for the different distribution channels. Emphasis is placed on sectors of the economy, such as tourism, the provision of services, and sectors that require the use of digital tools and the adoption of new technologies (an illustrative example is the flourish of the Sharing Economy). The course has a practical character, providing at the same time the appropriate theoretical background. It aims at familiarising the students with theoretical concepts and existing technologies, focusing on their implementation.