Revenue Management: An Introduction

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Revenue Management An Introduction
MIST 8990UGA Evening MBA Program Fall Semester
2005
Course Instructors Robert G. Cross, CEO Revenue
Analytics Patrick G. McKeown, Professor Emeritus
of MIS
Plus---a variety of visiting speakers
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Overview

• Most Chief Financial Officers admit that their
  firms transactions are leaving 1 to 5 margin
  on the table. For the typical firm, a 1 error in
  pricing equates to 7 on the bottom line.
• This course will teach no-tech, low-tech, and
  high-tech Revenue Management methods that
  managers can use to
  
• increase revenue without increasing products or
  promotions predict consumer behavior
  
• tap into new markets
• and deliver products and services to customers
  effectively and efficiently.

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Instructors

• Patrick G. McKeown, (pmckeown_at_uga.edu) retired
  professor of MIS and former department head.
  
• Bob Cross, (rcross_at_revenueanalytics.com) CEO of
  Revenue Analytics and father of revenue
  mangement
  
• Speakers include faculty from UGA and experts in
  revenue management from industry

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Speakers

• UGA Faculty
• Richard Watson, MIS
• Hugh Watson, MIS
• Jay Aronson, MIS
• Greg Trandel, Econ
• Industry
• Trent Ball, Delta Airlines
• Dick Niggley, RevenueAnalystics
• Jon Higbee and colleagues, Manugistics

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Course Objectives

• After completing this course, you should be able
  to
  
• Describe the concepts of revenue management and
  its application in both public and private
  organizations,
  
• Discuss the revenue management process.
• Understand state-of-the-art revenue management
  applications.
  
• Discuss the use of optimization and other
  quantitative techniques for revenue management.
  
• Apply revenue management to actual situations and
  develop a recommendation for its application.
  
• AND

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• Use revenue management to make more money!

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Textbook and Course Outline

• Textbook Revenue Management Hardcore Tactics
  for Market Domination by Robert G. Cross
  (available from Amazon.com or other online
  booksellers.)
• The syllabus for this course can be found at
  http//www.terry.uga.edu/pmckeown/RevMan05
  
• Student evaluation will be based on class
  participation, team projects, and a final exam.
  
• Students are expected to attend ALL classes.
  Missing more than one day WILL result in removal
  from class.

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Team Projects

• The class will be divided into teams of size 4 or
  5 and assigned a topic for a revenue management
  project.
  
• On September 24, each team will make a brief
  presentation on their analysis of the topic and
  turn in an one page executive summary of their
  analysis.
• On the last day of class, Oct 15, each team will
  make a longer presentation on their project to
  the class.
  
• This presentation should consider all aspects of
  revenue management (including, but not limited
  to, the core concepts of revenue management and
  the revenue management process) as applied to one
  the possible projects.

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Teams

• During the morning and lunch break periods on the
  first day, students are asked to create teams
  
• During the afternoon break, Dr. McKeown should be
  informed of team membership
  
• Once teams are completed, they should review the
  projects and determine preference ordering for
  the projects
  
• Teams will select a project based on a draft
  order which will be drawn by lottery

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Grading

• Participation in discussion of cases and RM
  Exercises 10
  
• Team presentation of project 40
• Short Presentation 5
• Long Presentation 25
• Executive Summary 10
• Final Exam 30
• A team write-up of an RM application 20

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Cases and Exercises

• There are 3 cases and 3 in-class exercises that
  you will be asked to discuss
  
• For cases, you will need to have read the case
  before class and answered any case questions. If
  there are no questions (as with the Orthodontics
  Case), you should analyze how the author has or
  has not applied the Revenue Management Process
  and Core Concepts
• You should be ready to discuss your answers and
  analysis in class
  
• For in-class exercises, your team will be asked
  to develop a solution which you will very briefly
  present to the class (1 minute, max)