Ders Planı

CLASS 1

Lesson plan / PRICING AND REVENUE MANAGEMENT

Lesson Information

Course Credit	3.0
Course ECTS Credit	5.0
Teaching Language of Instruction	Türkçe
Level of Course	Bachelor's Degree, TYYÇ: Level 6, EQF-LLL: Level 6, QF-EHEA: First Cycle
Type of Course	Faculty Elective
Mode of Delivery	Face-to-face
Does the course require compulsory or optional work experience?	F
Course Coordinator	Prof. Dr. MUSTAFA NAFİZ DURU
Instructor (s)	Prof. Dr. ALİ GÜNEŞ
Course Assistant

Purpose and Content

The aim of the course	Even though pricing decisions are considered as the key drivers of profitability they are not properly managed by most companies. The purpose of this course is to get a thorough understanding of how to set and adjust prices in order to maximize profitability especially by utilizing Revenue Management techniques in industries with limited inventory and perishable products such as airline and hospitality industries.
Course Content	1) Introduction to Pricing 2) Different approaches to setting prices and their applications in the industry. 2) Introduction to Revenue Management, 3) Concept of Expected Marginal Revenue and its application in Single source capacity control. 4) Network capacity control 5) Overbooking and their various applications throughout the industry.

The aim of the course

Even though pricing decisions are considered as the key drivers of profitability they are not properly managed by most companies. The purpose of this course is to get a thorough understanding of how to set and adjust prices in order to maximize profitability especially by utilizing Revenue Management techniques in industries with limited inventory and perishable products such as airline and hospitality industries.

Course Content

1) Introduction to Pricing 2) Different approaches to setting prices and their applications in the industry. 2) Introduction to Revenue Management, 3) Concept of Expected Marginal Revenue and its application in Single source capacity control. 4) Network capacity control 5) Overbooking and their various applications throughout the industry.

Learning Outcomes

Adequate knowledge in mathematics, physical sciences and the computer engineering subjects of individual branches; the ability to implement theoretical and practical knowledge in the respective areas to modeling and solving computer engineering problems.
Ability to reflect the developments in Information and Communication Technologies to the applications of Information Technology.
Ability to identify, define, formulate and solve complex computer engineering problems; ability to select and implement the appropriate analysis and modeling methods in this respect.
Ability to design experiments for analysing computer engineering problems, to conduct experiments, to collect data, to analyse and interpret the results.
Ability to design a complex informtacis system, process, device or product to meet specific requirements under realistic restrictions and conditions; ability to implement the modern design methods for this purpose.
Ability to use, choose and develop modern techniques and means required for computer engineering applications; ability to use information technologies effectively.
Ability to work effectively in interdisciplinary and multi-disciplinary teams; ability to work individually..
Knowledge of applications in business life like project management, risk management and change management; awareness about entrepreneurship, innovativeness and sustainable development.
Awareness of the necessity of lifelong learning; ability to reach information, follow the latest developments in science and technology; ability to ensure self-renewal perpetually.
Ability to communicate efficiently both in oral and written ways in Turkish; knowledge of at least one foreign language; ability to effectively prepare reports and understand written reports, prepare design and production reports, effective presentation, giving and receiving clear and understandable instructions.
Knowledge on the effects of informatics applications on health, environment and safety in terms of universal and social aspects and information about the problems of the era; awareness on the legal results of informatics solutions.
Acting in line with ethical principles, sense of professional and ethical responsibility; knowledge on the standards of engineering applications.

Weekly Course Subjects

1	Introduction to pricing : Importance of pricing, Pricing as an art and science
2	Elasticity of Demand,Value Based Pricing, Psychological aspects of pricing
3	Introduction to Revenue Management (RM): Origins of Revenue
4	Management, RMs applicability conditions, Components of Revenue Maximization
5	Differential Pricing, Segmentation, Fare product restrictions
6	Booking controls, Single source RM
7	Littlewood’s Two-Class Model and Decision tree approach
8	Mid term exam
9	Concept of Expected Marginal Revenue
10	Capacity Allocation with Multiple Fare Classes
11	Expected Marginal Seat Revenue (EMSRa) Algorithm
12	Expected Marginal Seat Revenue (EMSRb) Algorithm
13	Overbooking: Network Revenue Management
14	Practical applications of Pricing and Revenue Management in different industries

Resources

1-The instructor’s intension is to make sure that the material covered during the lectures is as complete as possible. Therefore, there is no required textbook. However the following books would make it easier to understand concepts covered in the lectures. Familiarity with probability-statistics ,optimization techniques and calculus is required. Some of the calculations will require using Matlab and Excel.
Recommended Book: Pricing and Revenue Optimization, Stanford University Press, by Robert L. Phillips, 2005.
Recommended Book: The Theory and Practice of Revenue Management by K. Talluri andG. Van Ryzin. Kluwer Academic Publishers, 2004.

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Lesson Information

Purpose and Content

Learning Outcomes

Weekly Course Subjects

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