Sales and Revenue Management2016-2017

Level 744-7730-00S

Sheffield Business SchoolModule leader - Natalie Haynes

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Table of Contents

What's this module about?......................................................3Module Overview.....................................................................6Module aims............................................................................7Module Learning Outcomes.....................................................7Schedule of Study....................................................................8Reading List...........................................................................12Task Brief 1...........................................................................12Task Brief 2...........................................................................16

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What's this module about?Sales and Revenue Management is an exciting and dynamic subject. No longer just the domain of specialist revenue and sales managers all hospitality managers will now benefit from understanding and being able to apply revenue and sales management principles. Revenue Management began in the airline industry where it was originally termed yield management. It was then adopted by the hotel sector and is now spreading to restaurants, bars, conference and meetings venues, events management, visitor attractions and even car rental. Integral to an understanding of revenue management is an appreciation of strategic sales management and this module also promotes understanding in this area. So no matter where your particular interests lie, studying this module will be of great benefit in your future career.

This module will introduce you to all the major revenue and management principles and practices and give opportunities to put these into practice in workshops and seminars. We want you to leave this module with not just an overview of how to calculate and present revenue facts and figures but show you how you can use these figures to make strategic business decisions vital for the success of an organisation.

Indicative content:

• Revenue and yield management strategies and applications• Application of revenue management at the operations level• Non-traditional applications of revenue management• Analysing revenue, sales and competitor information• Strategic sales processes and techniques• Account management and account revenue maximisation• Problems with revenue management• Relationships between sales and revenue departments• Business performance

How will this module deliver the relevant industry sector skills and competencies?

The following employability skills will be focused upon throughout this module.

This module prepares you for a career in hospitality where an understanding of revenue and sales management will be increasingly vital to your success in whichever sector you choose to develop your career. In studying this module you will develop and enhance several key skills and competencies along the way, all of which are important in your work life and study.

Communication To be able to communicate both verbally and in written form your ideas, knowledge and conclusions and the evidence underpinning these.

Data analysis and synthesis To analyse and interpret data collected during your research.

Innovation and creativity To come up with new ideas, concepts, solutions or procedures and to be able to apply them to new or existing situations.

Knowledge integration and complexity To be able to integrate knowledge, manage complexity and develop conclusions based on incomplete or inadequate information.

Problem Solving To identify problems and develop appropriate solutions.Research and management of information To identify, find and choose the relevant information and

use it in a proper format.Self-Management To be able to use your time and activities effectively for the

delivery of your objectives.

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What is the current research context that this module applies?This module will draw on the latest research from the field of revenue and sales management and students will be challenged to apply this theoretical information to practical scenarios. The area of revenue and sales management research is constantly expanding and tutors keep abreast of all major changes and actively followed in researching and publishing in this area. Students are encouraged to do the same and a comprehensive reading list accompanies this module to provide a guide to develop students' knowledge and understanding of the existing research.

How is internationalisation delivered and applied within the module?Hospitality is a global phenomenon and therefore studying revenue management must take into account the global marketplace. Revenue managers must understand how consumers from different areas of the globe and different cultures will react to the revenue management decisions they make. As the internet and global booking agents have come to the fore it is possible to target customers from all over the world. This module will examine the global context and how this may affect the revenue management decisions managers make, in both seminars and workshops.

How does this module embed Principles of Responsible Management Education?A key part of many businesses competitive strategy is to have a strong ethical revenue and sales plan and procedures in place. When investigating these strategies you will be expected to consider the importance of CSR in your sector, citing recent examples of issues in the media.

How will this module be delivered (learning and teaching the module?This module will be delivered in a two hour weekly lecture and a one hour seminar session. The lecture will provide grounding in the basic knowledge and principles' and seminars and workshops will explore specific issues and applications of techniques and provide formative feedback for the assignment. Learning will be supported by case studies and revenue and sales data provided by STR Global.

The assessment should be seen as part of your learning approach. The module aims to be interactive and to get the most out of it, be prepared to participate fully. Come to classes prepared, having read any hand-outs or directed book/article readings that the lecturers may ask you to prepare and be prepared to discuss these as required. In order to prepare for classes, where needed, learning materials will be made available in advance to ensure that students can make a valuable contribution.

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Assessment PackageThe assessment tasks that you are required to submit for this module focus on the following learning outcomes

Evaluate revenue and sales management and its benefits Discuss the strategic levers of revenue management and how they can be manipulated to

increase revenue Review and apply revenue and sales management in terms of its component parts and

critical considerations Critically analyse competitive and market data to make key revenue management

decisions.

How will Blackboard be used with this module?Blackboard will be used by this module in a number of ways. Initially you will view it as a point of access to learning materials - lecture slides, hand-outs, etc. As the semester progresses further learning resources will be available and discussion boards may be used to facilitate self-directed learning.

The reading list is available from the Blackboard site, you should familiarise yourself with this and read extensively throughout the whole module. You are required to undertake the directed reading as a minimum, finding additional sources of literature and pursuing your own quest for knowledge is our expectation of you!

The Grade Centre within Blackboard will be used to provide you with feedback on your performance and inform you of the actual grades you achieve. See specific task briefs for further details.

Blackboard will be used in several ways in this module. It will be one of the main ways we will communicate with you. We will post announcements on the Blackboard site and send e-mails to you from here. There are also two forums set up on Blackboard. The first one is to set up a discussion about the future of revenue management and students are encouraged to post their ideas and research on this forum to be discussed in class. The second forum allows students to ask questions not covered in class or to share hints and tips covering things such as assessment and resources with their colleagues and tutors. Making an active contribution to these forums will support your learning and assessment.

How will student feedback be obtained on this module and how will this be used?The opportunity for formative feedback will be provided during seminar sessions and will take many forms. Summative feedback will be provided by your tutor and via blackboard within three weeks of submission of the assessment.

Module team

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The module team will discuss any aspect of the module during timetabled sessions. Outside of scheduled times, members of the team may be contacted directly by telephone or email.

Tutor Telephone E mail

Natalie Haynes 0114 2253101 n.haynes@shu.ac.uk

Philip Murray 0114 2255246 p.murray@shu.ac.uk

David Egan 0114 2253101 d.j.egan@shu.ac.uk

Module Overview

Module Title: Sales and Revenue Management Module Code: 44-7730-00S

Academic Year: 2016-2017

Level: 7 Credits: 15 Semester: 2

Course: MSc International Hospitality Management

Module Leader: Natalie Haynes Module Team:Natalie HaynesDavid EganPhilip Murray

Assessment Method Weighting Submitted When

1. An individual written review of a simulated sales and revenue problem conducted during an allocated seminar session. 500 words

20% Week 35w/c 20th March 2017

2. An individual report where students will be expected to develop a sales and revenue strategy based on simulated scenario provided by tutors, linked to the simulated sales and revenue problem 3500 words

80% Week 41

w/c 1st May 2017

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Module aimsThe aims of the module are to:

1. Enable students to understand the principles of revenue management and its application within the hospitality and tourism industry.

2. Provide students with an appreciation of how to make strategic pricing decisions using relevant data.

3. Develop students' knowledge of strategic sales techniques and account revenue maximisation.

4. Encourage an appreciation of the links between the sales and revenue functions within hospitality and tourism organisations.

Module Learning OutcomesBy engaging successfully with this module a student will be able to:

1. Interpret and critically analyse a range of data in order to make convincing strategic price, revenue and sales decisions.

2. Recommend a sales and revenue strategy for a simulated hospitality organisation and defend those strategies in a group situation.

3. Evaluate how the relationship between sales and revenue teams impacts upon the overall success of a hospitality organisation.

4. Appraise the impact of current sales and revenue management trends on the industry and market conditions.

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Schedule of Study

University Week Lecture Seminar Directed Reading

week 28

Introduction to the module and the

Purpose and Principles of Revenue

Management

Introduction to assessment

Chapter 1 - Revenue Management for the

Hospitality Industry (see key text for full reference)

Chapter 1 - Revenue Management for

Hospitality and Tourism (see key text for full

reference)

KIMES, S.E. (2010). The future of revenue

management. Journal of Revenue and Pricing

Management, 10 (1), 62-72.

CROSS, R.G., HIGBIE, J.A. and CROSS, D.Q. (2009). Revenue Management's

Renaissance: A Rebirth of the Art and Science of

Profitable Revenue Generation. Cornell

Hospitality Quarterly, 50 956), 56-81.

week 29 Strategic SellingIntroduction to STR

Monthly STAR reports

BORG, S & FREYTAG, P. (2012). Helicopter View:

An Interpersonal Relationship Sales

Process Framework. Journal of Business and Industrial Marketing, 27

(7), 559-571

HOHENSCHWERT, L. (2012). Salespeople's

Value Creation Roles in Customer Interaction: An Empirical Study. Journal of Consumer Behaviour,

11 (2), 145-166

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week 30Pricing and Value

Strategies Introduction to STR pipeline and trend reports

Chapter 2 - Revenue Management for the

Hospitality Industry (see key text for full reference)

PEKGUN, P. et al (2013). Carlson Rezidor Hotel

Group Maximizes Revenue through improved demand

management and price optimization. Interfaces,

43 (1), 21-36.

ROHANI, A. (2012). Impact of dynamic pricing

strategies on consumer behaviour. Journal of

Management Research, 4 (4), 143-159.

MATHIES, C., GUDERGAN, S.P. and WANG, P.Z. (2013). The Effects of

Customer-Centric Marketing and Revenue

Management on Travellers' Choices.

Journal of Travel Research, 52 (4), 479-493

week 31 Inventory ManagementSTR Data Group Data

Exercise

Chapter 8 - Revenue Management for Hospitality and Tourism (see key text for full reference)

Chapter 7, 10-11 Revenue Management for the

Hospitality Industry (see key text for full reference)

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week 32

Assessment Task 1 Briefing and

Distribution Channel Management

STR Monthly STAR Report Support Session -

understanding the data used for the assessment

LAW, R., LEUNG, R., LO, A., LEUNG,D. & FONG, L.

(2015). Distribution channels in hospitality and tourism: Revisiting

disintermediation from the perspectives of hotels and

travel agencies. International Journal of

Contemporary Hospitality Management, 27 (3), 431-

452.

STANGL, B., INVERSINI, A. & SCHEGS, R. (2016).

Hotels' dependency on online intermediaries and their chosen distribution channel portfolios: Three

country insights. International Journal of

Hospitality Management, 52, 87-96

week 33 Elective week Elective Week N/A

week 34 Strategic Account Management

Group problem discussions - task 1

assessment

SPEAKMAN, J.I.F & RYALS, L. (2012). Key

Account Management: The Inside Selling Job. Journal

of Business $ Industrial Marketing, 27 (5), 360-369.

week 35 Assessment Task 2 Briefing Session

STR Monthly STAR Report Support Session -

understanding the data used for the assessment

No set reading

week 36 The future of revenue and sales management

SPIN - The Sales Conversation

WANG, L.X., YOOJOUNG HEO, C., SCHWARTZ, Z.,

LEGOHEREL, P. & SPECKLIN, F. (2015).

Revenue Management: Progress, Challenges and

Research Projects. Journal of Travel and

Tourism Marketing, 32 (7), 1-15

week 37Assessment Guidance Assessment Guidance

No set reading - work on assessment 2

week 38 Easter Vacation Easter Vacation No set reading - work on assessment 2

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week 39 Easter Vacation Easter VacationNo set reading-work on

assessment 2

week 40 Assessment Guidance Assessment Guidance No set reading- work on assessment 2.

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Reading List

The online resource list for this module is available at https://shu.rl.talis.com/lists/7979F069-D8B4-5B27-16C5-CC00A51B696F.html

This list is available on the module Blackboard site (Support resources section) or through the Library Gateway link to reading lists https://shu.rl.talis.com/ (search by name of the module or module code).

Task Brief 1

Module Title: Sales and Revenue Management

Assessment Title: Case Study – Revenue and Sales Business Problem Resolution

Individual/Group: Individual written memo

Weighting: 20%

Submission Date: Please submit via the Blackboard site in week 35 (see assessment scheduler for specific time and date

Instructions To Students For Submission Of This Coursework

You are required to respond to a business scenario-based problem based on the hotel case study scenario and the revenue/market data given. Your response will be in the format of an individually composed 500 word, formal memo written to the hotel's General Manager. You will assume the role of the hotel's Sales and Revenue Manager.

To support your problem resolution you will be placed in peer support groups within your seminars. These groups must be no larger than five people. Your peer support group will get the opportunity to analyse the problem together in the seminars and present your ideas in a formal debate facilitated by your seminar tutor in week (TBC).

These debates will not be assessed but will provide you with valuable formative feedback. Your group will be presented with ONE of the four scenarios below and this scenario is the one you must also respond individually to.

1. One of your key airline accounts who provide you with 500 room nights per annum is threatening to move to a competitor hotel due to being offered a cheaper price. What would you do?

(first, segmentation figures, year day figure.shouldn’t reduce the rate. Adding value2. You have noticed that last month's occupancy figures show your occupancy is below that of your competitor set what would you do?

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3. Your sales manager wants to take some very low-rated conference business for January. Do you want this business?

4. You notice that a large area of unused space outside your main conference room is not contributing to revenue generation. What would you do?

You will be supplied with the following supporting information:

A guidance sheet on writing a business memo. A STAR report from STR for the case study hotel. A Market Pipeline from STR for the case study destination The Market Trend report from STR for the case study destination The case study report.

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Assessment Criteria – Task 1

Module Title: Sales and Revenue Management Level 7Assessment Title: Case Study – Revenue and Sales Business Problem

ResolutionWeighted: 20%

% Range

CRITERIA 1 (20%) CRITERIA 2 (20%) CRITERIA 3 (20%) CRITERIA 4 (20%) CRITERIA 5 (20%)

Awareness of sales and revenue management trends

Application of appropriate theory

Critical analysis of the case study material

Evaluation, synthesis and recommendations

Utilisation of business communication

80 - 100% Outstanding Work

+ Above expectations; fully referenced without error with up-to date appropriate high quality sources being used to identify trends.

+ Above expectations with extraordinary ability to apply appropriate theory.

+ Analytical approach to the case study taken with in-depth discussions. Questions and compares related knowledge in a rigorous manner.

+ Above expectations with extraordinary ability to evaluate and synthesis material and make innovative and realistic recommendations.

+ Without flaw, free from grammatical error, fluent and logical in thought, of perfect quality, suitable for immediate presentation to a management board.

70 - 79%Excellent Work

Extensive evidence of integrating appropriate supplementary sources which are used to identify trends.

Extensive evidence of the ability to apply appropriate theory.

Exceptional knowledge and in-depth understanding of principles and concepts related to the case study.

Extensive evidence of the ability to evaluate and synthesis material and make realistic recommendations.

Outstanding, well-directed presentation, logically and coherently structured, using correct grammar and spelling. Could be presented to a board with very minor amendments.

60 - 69% Evidence of reading good Good evidence of the Good knowledge and in- Good evidence of the Good, well-directed

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Good quality work

supplementary sources which are used to identify trends.

ability to apply appropriate theory.

depth understanding of principles and concepts related to the case study.

ability to evaluate and synthesis material and make realistic recommendations.

presentation, logically structured, using correct grammar and spelling. Could be presented to a board with minor amendments.

50 - 59%Satisfactory Work

Evidence of reading a satisfactory range of supplementary sources which are used to identify trends.

Satisfactory evidence of the ability to apply appropriate theory.

Satisfactory knowledge and a good understanding of principles and concepts related to the case study.

Satisfactory evidence of the ability to evaluate and synthesis material and make realistic recommendations.

Satisfactory quality presentation, well structured, using correct grammar and spelling. Could be presented to the board after significant amendments.

40 - 49%Marginal Fail

Minimal evidence of reading with very few trends identified.

Very limited evidence of the ability to apply relevant theory.

Limited and/or superficial knowledge of key principles and concepts related to the case study.

Very limited evidence of the ability to evaluate and synthesis material and make realistic recommendations.

Poor presentation and structure, grammar and spelling. Could only be presented to the board after major review and re-write.

0-39%Fail

No evidence of reading and no trends identified.

No evidence of the ability to apply relevant theory.

No evidence of understanding the key principles and concepts related to the case study.

No evidence of the ability to evaluate and synthesis material and make realistic recommendations.

Inadequate presentation and structure, grammar and spelling. Unacceptable for presentation to the board.

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Task Brief 2

Module Title: Sales and Revenue Management

Assessment Title: Sales and Revenue Plan for a case study resort hotel

Individual/Group: Individual

Weighting: 80%

Submission Date: Please submit electronically via Blackboard week 41. Please check your assessment scheduler for the precise time and date.

DETAILED INSTRUCTIONS TO STUDENTS

Your are required to analyse the case study scenario and revenue/market date given to generate a sales and revenue plan, which will need to address the strategies which the hotel needs to implement into order to develop revenue and profit over the forthcoming 12 months.

The plan should be written as a formal business report. You will again assume the role of the hotel's Sales and Revenue Manager and you will be writing the report to be read by the hotel's General Manager.

Your report must be 3500 words (+/- 10%) and must be correctly referenced following SHU guidelines.

Your report will include:

An introduction stating the aims and objectives of the report (250 words) An analysis of the current revenue and sales situation of the hotel and the

market (600 words) An outline of the future key challenges and opportunities you can identify for

the hotel and the market (600 words) A recommendation of the selling techniques to be used by the team e.g.

consultative selling (500 words). Five key recommended revenue and sales strategies that cover both price

and non-price methods that address the new competitor, the market and current situation of the hotel, covering all revenue producing streams including rooms, food and beverage, spa, conferences and events. (1200 words)

A concluding statement supporting why you will feel your five revenue and sales strategies should be considered by management (350 words)

Guidance to students: Use of academic and professional literature. Your recommendations and

ideas must be supported by hotel and market data as well as revenue and sales theory.

Use all case study documents and revenue/market data. Consider the solutions to the problems presented in Task 1.

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You will be supplied with the following supporting information: A STAR report from STR for the case study hotel. A Market Pipeline from STR for the case study destination The Market Trend report from STR for the case study destination The case study report.

Feedback & Feed-forward Strategy for the Module and how students can access their Feedback

You will be provided with verbal feedback on class activities (poster presentations and presentations of journal findings). Review meetings will be held with the whole class and the module tutor throughout the duration of the module to generate formative feedback on work in progress for assignment two, and there will be a final briefing session towards the end of the semester. Summative feedback on both assignment one and two will be provided. This will comment on how well the assessment criteria and learning outcomes have been met and will also use a specially designed proforma. You will be able to clarify any outstanding issues after assignment one in one-to-one discussions with the module tutor. Your feedback will be e mailed to you using your SHU e mail address.

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Assessment Criteria – Task 2

Module Title: Sales and Revenue Management Level 7

Assessment Title: Sales and Revenue Plan for a case study resort hotel Weighted: 80%

% Range

CRITERIA 1 (20%) CRITERIA 2 (20%) CRITERIA 3 (20%) CRITERIA 4 (20%) CRITERIA 5 (20%)

Awareness of sales and revenue management trends

Application of appropriate theory

Critical analysis of the case study material

Evaluation, synthesis and recommendations

Utilisation of business communication

80 - 100% Outstanding Work

+ Above expectations; fully referenced without error with up-to date appropriate high quality sources being used to identify trends.

+ Above expectations with extraordinary ability to apply appropriate theory.

+ Analytical approach to the case study taken with in-depth discussions. Questions and compares related knowledge in a rigorous manner.

+ Above expectations with extraordinary ability to evaluate and synthesis material and make innovative and realistic recommendations.

+ Without flaw, free from grammatical error, fluent and logical in thought, of perfect quality, suitable for immediate presentation to a management board.

70 - 79%Excellent Work

Extensive evidence of integrating appropriate supplementary sources which are used to identify trends.

Extensive evidence of the ability to apply appropriate theory.

Exceptional knowledge and in-depth understanding of principles and concepts related to the case study.

Extensive evidence of the ability to evaluate and synthesis material and make realistic recommendations.

Outstanding, well-directed presentation, logically and coherently structured, using correct grammar and spelling. Could be presented to a board with very minor amendments.

60 - 69%Very Good Work

Evidence of reading very good supplementary sources which are used to identify trends.

Very good evidence of the ability to apply appropriate theory.

Very good knowledge and in-depth understanding of principles and concepts related to the case study.

Very good evidence of the ability to evaluate and synthesis material and make realistic recommendations.

Very good, well-directed presentation, logically structured, using correct grammar and spelling. Could be presented to a board with minor amendments.

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50 - 59%Good Work

Evidence of reading a good range of supplementary sources which are used to identify trends.

Good evidence of the ability to apply appropriate theory.

Good knowledge and a good understanding of principles and concepts related to the case study.

Good evidence of the ability to evaluate and synthesis material and make realistic recommendations.

Good quality presentation, well structured, using correct grammar and spelling. Could be presented to the board after significant amendments.

40 - 49%Acceptable Work

Evidence of reading the directed reading and some supplementary sources but with few trends identified.

Occasional evidence of the ability to apply appropriate theory.

Appropriate knowledge and understanding of principles and concepts related to the case study.

Occasional evidence of the ability to evaluate and synthesis material and make realistic recommendations.

Orderly presentation and structure with acceptable grammar and spelling. Could only be presented to the board after major review.

35- 39%Marginal Fail

Minimal evidence of reading with very few trends identified.

Very limited evidence of the ability to apply relevant theory.

Limited and/or superficial knowledge of key principles and concepts related to the case study.

Very limited evidence of the ability to evaluate and synthesis material and make realistic recommendations.

Poor presentation and structure, grammar and spelling. Could only be presented to the board after major review and re-write.

0- 34%Fail

No evidence of reading and no trends identified.

No evidence of the ability to apply relevant theory.

No evidence of understanding the key principles and concepts related to the case study.

No evidence of the ability to evaluate and synthesis material and make realistic recommendations.

Inadequate presentation and structure, grammar and spelling. Unacceptable for presentation to the board.

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