Introduction to Revenue Management & Business Data Analytics

课程简介：

The essence of revenue management is to sell the right product to right customers at right prices – a method of profitably managing limited and perishable capacity. This course helps students to apply the principles of revenue management. Main topics include yield management techniques, demand forecasting, classic allocation models and heuristics, LP models and bid prices, and overbooking. Excel programming with data analytics will be used to gain hand-on experiences.

The course consists of eight three-hour seminars and the course materials are primarily based on research articles. Please try your best to read the articles for each lecture. We will be using a combination of lectures, discussion, class exercise, and computer exercises to enhance your understanding of modern revenue management.

授课安排：

Lecture / Date/Time / Topics & Readings
1 / March 16
6:00pm-9:00pm / Introduction to Revenue Management
Readings: Kimes (1989a, 1989b)
2 / March 17
6:00pm-9:00pm / Forecasting I: Basic Techniques
Readings: Weatherford et al (2001), Weatherford & Kimes (2003)
3 / March 18
9:00am-12:00am / Forecasting II: Advanced Techniques
Readings: Chen and Kachani (2007)
  • Case: Zeni and Lawerence (2004)

4 / March 18
2:00pm-5:00pm / Classical Allocation Models
Readings: Littlewood (2005)
5 / March 19
9:00am-12:00am / Heuristic Methods for Multiclass Problems
Readings: Belobaba (1989), Baker and Collier (1999)
6 / March 19
2:00pm-5:00pm / LP Models for RM – Part I
Readings:
  • Glover, et al (1982)

7 / March 20
6:00pm-9:00pm / LP Models for RM – Part II
Readings:
  • Harewood (2006)

8 / March 21
6:00pm-9:00pm / Overbooking
Required Readings:
  • Rothstein (1985), Toh and DeKay (2002)

Readings (I will provide softcopies of all these papers):

  1. S. E. Kimes. The Basics of Yield Management. Cornell Hotel and Restaurant Administration Quarterly, 30(3):14–19, 1989a. (Introduction)
  2. S.E. Kimes. Yield Management: A Tool for Capacity-Constrained Service Firms. Journal of Operations Management, 8(4), 348-363, 1989b. (Introduction)
  3. L.R. Weatherford, S.E. Kimes and D.A. Scott. Forecasting for Hotel Revenue Management: Testing Aggregation against Disaggregation. Cornell Hotel and Restaurant Administration Quarterly, 42(4): 53-64, 2001. (Forecasting I)
  4. L.R. Weatherford and S.E. Kimes. A Comparison of Forecasting Methods for Hotel Revenue Management. International Journal of Forecasting, 19(2): 401-415. (Forecasting I)
  5. C. Chen and S. Kachani. Forecasting and Optimisation in Hotel Revenue Management. Journal of Pricing and Revenue Management, 6(3):163-174, 2007. (Forecasting II)
  6. K. Littlewood. Forecasting and Control of Passenger Bookings. Journal Revenue and Pricing Management, 4(2):111-123, 2005. (Classic Allocation Models)
  7. P.P. Belobaba. Application of a Probabilistic Decision Model to Airline Seat Inventory Control. Operations Research, 37(2):183-197, 1989. (Heuristic Methods)
  8. K. Baker and D. Collier. A Comprehensive Revenue Analysis of Hotel Yield Management Heuristics. Decision Sciences, 30(1): 239-63, 1999. (Heuristic Methods)
  9. F. Glover, R. Lorenzo and M. McMilllan. The Passenger Mix Problem in the Scheduled Airlines. Interfaces, 2(3):73-80, 1982. (LP Models – Part I)
  10. S.I. Harewood. Managing a Hotel’s Perishable Inventory Using Bid Prices. International Journal of Operations and Production Management, 26(10):1108-1122, 2006. (LP Models – Part II)
  11. M. Rothstein. OR and the Airline Overbooking Problem. Operations Research, 33(2):237-248, 1985. (Overbooking)
  12. R.S. Toh and F. DeKay. Hotel Room-inventory Management: An Overbooking Model. Cornell Hotel and Restaurant Administration Quarterly, 43(4):79-90, 2002. (Overbooking)

Cases

  1. R.A. Skumsky. SkyJet, 2003.
  2. D. Chen and M. Freimer. Understanding the Bid Price Approach to Revenue Management: A Case of the Revenue Inn. 2004
  3. H.Z. Zeni and K.D. Lawerence. Unconstraining Demand Data at US Airways. 2004.
  4. G.I. van Ryzin. TNG, 1998.
  5. I. Popescu. Easy Profit – A Revenue Management Pilot. INSEAD Case 606-022-1, 2006.

Optional Readings:

  1. P.P. Belobaba. Airline Yield Management: An Overview of Seat Allocation Control. Transportation Science, 21:63-73, 1987. (RM – Overview)
  2. L. R. Weatherford and S. E. Bodily. A taxonomy and research overview of perishable-asset revenue management: Yield management, overbooking and pricing. Operations Research, 40(5):831–844, 1992. (RM – Taxonomy)
  3. J.I. McGill and G.J. van Ryzin. Revenue Management: Research Overview and Prospects. Transportation Science, 33(2):233-256, 1999. (Airline RM – Survey)
  4. G.J. van Ryzin and K.T. Talluri. Revenue Management. In RW. Hall (ed), Handbook of Transportation Science (2nd Ed), pp.599-659, Kluwer Academic Publishers, 2003. (RM – Survey)
  5. E. Orkin. Wishful Thinking and Rocket Science. Cornell Hotel and Restaurant Administration Quarterly, 39(4):15–19, 1998. (RM – General)
  6. S.L. Brumelle, J.I. McGill. Airline Seat Allocation with Multiple Nested Fare Classes. Operations Research, 41(1):127-137, 1993. (Allocation Model)
  7. S.L. Brumelle, J.I. McGill, T.H. Oum, K. Sawaki and M.W. Tretheway. Allocation of Airline Seat between Stochastically Dependent Demands. Transportation Science, 24:183-192., 1990. (Allocation Model)
  8. P.E. Pfeifer. The Airline Discount Fare Allocation Problem. Decision Sciences, 20(1), 149-157., 1989.
  9. R. D. Wollmer. An airline seat management model for a single leg route when lower fare classes book first. Operations Research, 40(1):26–37, 1992. (Allocation Model)
  10. M.Z.F. Li and T.H. Oum. A Note on the Single Leg, Multifare Seat Allocation Problem. Transportation Science, 36(6):349-353, 2002. (Allocation Model)
  11. L. R. Weatherford. EMSR versus EMSU: Revenue or Utility? Journal of Revenue and Pricing Management, 3(3):277–284, 2004. (Heuristics)
  12. V. Liberman and U. Yechiali. On the Hotel Overbooking Problem- an Inventory System with Stochastic Cancellations. Management Science, 24(1):1117-26, 1978. (Hotel Overbooking)
  13. E. Shlifer and Y. Vardi. An Airline Overbooking Policy. Transportation Science, 9(2):101-114, 1975. (Overbooking)
  14. S.E. Bodily and P.E. Pfeifer. Overbooking Decision Rules. Omega, 20:129-133, 1992. (Overbooking)

Reference Books:

Cross, Robert A. 1997. Revenue Management: Hard-Core Tactics for Market Domination. New York: Broadway Books.

Phillips, Robert. 2005. Pricing and Revenue Optimization. California: Stanford University Press.

Talluri, Kalyan T. and Van Ryzin, Garrett J. 2004. The Theory and Practice of Revenue Management. Springer.