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Online course

Manage Your Prices: an Introduction to Pricing Strategy and Revenue Management

Learn to use pricing strategies to increase your firm’s revenue, and set the right price for the right person at the right time.

Free:

  • Access to the course for its duration + 14 days, regardless of when you join (this includes access to articles, videos, peer review steps, quizzes)
  • No access to course tests
  • No certificate

Upgraded:

  • Unlimited access to the course, for as long as it exists on FutureLearn (this includes access to articles, videos, peer review steps, quizzes)
  • Access to course tests
  • A Certificate of Achievement when you complete the course

Find out more

Manage Your Prices: an Introduction to Pricing Strategy and Revenue Management

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Why join the course?

How do airlines, hotels, resorts and other organisations manage their prices? Why are these prices apparently unrelated to costs and different for each consumer? And what are the underlying reasons and processes behind these prices?

Open the black box of pricing strategy and revenue management

This free online course will open the black box of revenue management – the widespread pricing strategy that the travel, leisure and other industries use to generate additional revenue, by setting prices according to people’s preferences and willingness to pay.

You will explore the methods at the core of many revenue management systems, discovering the answers to questions such as:

  • Do all customers have the same sensitivity to price?
  • How can a firm use its knowledge on demand, to charge different people different prices for the same product?
  • Why do the prices vary over time?
  • How can a firm slightly differentiate its product in order to charge widely different prices to different people?
  • How can you define the right set of prices to increase the firm’s profit?
  • What is the outcome for the individual consumer? And for consumers as a whole?

Step into a pricer’s shoes and set your own pricing strategy

Throughout the course you will practice what you learn through practical pricing problems, pricing simulation games and interactive case studies. For example, you will step into the shoes of a pricer and set an airline’s pricing strategy over a period of time.

By the end of the course, you will be able to:

  • Demonstrate your knowledge and understanding of pricing strategies;
  • Compare and evaluate different pricing schemes in different sectors of industry;
  • Design a pricing framework in a real-life revenue optimisation situation;
  • Implement revenue management in your business, and experiment with price setting and capacity allocation.

Learn with revenue management specialists from aviation and other industries

The course has been developed by ENAC (Ecole Nationale de l’Aviation Civile) – a university specialising in the economics and strategy of the aviation industry, where revenue management originated.

Throughout, ENAC educators will also be joined by experts from other sectors that are successfully using revenue management techniques, giving you a variety of perspective and experiences.

Download video: standard or HD

Skip to 0 minutes and 7 secondsWhile planning your future holidays, have you ever wondered how to get the best prices for your airplane ticket or accommodation? How do airlines, hotels, car rentals, theme parks or even a small Bed & Breakfast set prices which can vary overnight and be quite different from one customer to another? Their secret recipe is known as Revenue Management, or Yield Management. Thanks to a subtle understanding of customer behavior, firms are able to sell their products to the right client, at the right time, for the right price and in so doing, dramatically increase profits. Nowadays, Revenue Management techniques have been adopted by entire sectors of the service industry, such as transport, hospitality and catering, rental, sport and leisure… and even the arts!

Skip to 0 minutes and 57 seconds And that’s not to mention the so-called sharing economy, whose business is forecast to multiply by 20 within the next 10 years. Hi. I’m Christophe Bontemps. I will be your lead professor for this course, and I’m inviting you to a four week journey of experiments and discoveries into the secret world of revenue management and dynamic pricing. My objective here is to enable you to gain real operational skills, so we’ll focus on practice all along the trip.

Skip to 1 minute and 28 seconds You will have to take decisions during real-life case studies, play online sessions of dynamic business games, solve problems and discuss all issues with your pals. At the end of the day, you should be able to put into place solid revenue management techniques for any kind of applicable business, and also to play the game as a “clever” consumer. Apart from knowing how to read a curve, attending this course does not require any academic prerequisites. So, whatever your background and motivation, this course should be easy for you to follow and it should even be fun! Well… are you ready to join in? If so, see you soon on the course!

What topics will you cover?

  • Basic economic concepts : supply and demand, consumer welfare, demand elasticity
  • Economic foundations of Price discrimination
  • The three types of price discrimination and product differentiation
  • Pricing under uncertainty
  • EMSR (Expected Marginal Seat Revenue)
  • Risk analysis, overbooking
  • Dynamic pricing strategies in various competitive environments
  • History of revenue management
  • Features of revenue management techniques
  • Strategic decisions in revenue management
  • Implementation of revenue management techniques in various businesses

When would you like to start?

  • Date to be announced

What will you achieve?

  • Demonstrate knowledge and understanding of the economic concepts of efficient pricing
  • Implement price discrimination in any applicable business
  • Apply strategic pricing and quota allocation in an environment of limited competition
  • Manage pricing schemes under uncertainty
  • Design a framework of price discrimination and revenue management

Who is the course for?

This course is designed for professionals who want to adopt pricing strategy and revenue management techniques in their organisation. You could be working in an industry where this practice is already common – such as at a travel, rental, catering or leisure business – or in a sector where it is emerging – such as at a mobile app developer or an e-commerce retailer.

The course is open to anyone, so may also interest consumers who are keen to understand why prices vary and how revenue management – which gives discounts to many and high prices to a few – works in many areas of their everyday’s life.

Who will you learn with?

Christophe Bontemps

Christophe Bontemps is a faculty member of the Toulouse School of Economics and professor at ENAC. He holds a PhD in applied mathematics and a Master in computer science.

Nathalie Lenoir

Nathalie Lenoir is a researcher and professor at ENAC. She has been teaching revenue management for more than 15 years. She holds a Master in transportation and a PhD in economics.

Who developed the course?

Free:

  • Access to the course for its duration + 14 days, regardless of when you join (this includes access to articles, videos, peer review steps, quizzes)
  • No access to course tests
  • No certificate

Upgraded:

  • Unlimited access to the course, for as long as it exists on FutureLearn (this includes access to articles, videos, peer review steps, quizzes)
  • Access to course tests
  • A Certificate of Achievement when you complete the course

Find out more

Get extra benefits, upgrade this course. For $79 you’ll get:

Unlimited access

Upgrading will mean you get unlimited access to the course.

  • Take the course at your own pace
  • Refer to the material at any point in future

If you’re taking a course for free you have access to the course for its duration + 14 days, regardless of when you join. If you upgrade the course you have access for as long as the course exists on FutureLearn.

Access to tests

When you upgrade you’ll have access to any tests during the course.

  • Validate your learning
  • Ensure you have mastered the material
  • Qualify for a certificate

To receive a Certificate of Achievement you need to take any tests and score over 70%. You don’t get access to tests if you choose to take a course for free.

A Certificate of Achievement

Upgrading means you’ll receive a Certificate of Achievement when you complete the course.

  • Prove your success when applying for jobs or courses
  • Celebrate your hard work
  • Display on your Linkedin or CV

To receive a Certificate of Achievement you need to mark 90% of the steps on the course as complete, and score over 70% on any course tests.

Course highlights Get a taste of this course before you join:

  • Case study: the airline manager dilemma
    Case study: the airline manager dilemma
    video

    This cartoon video exposes an easy decision problem of an airline manager of one flight. How to increase his profit with a single price strategy?

  • Consumer welfare
    Consumer welfare
    video

    Is price discrimination good or bad for customers? Before answering, watch Nathalie Lenoir explain the concept of consumer welfare.

  • Price elasticity
    Price elasticity
    article

    When prices change, how much do the quantities demanded change? This is what price elasticity measures. In this article, Nathalie Lenoir explains how.