Management Simulation

  • Credits: 3
  • Ending: Examination
  • Range: 2C
  • Semester: summer
  • Year: 1
  • Faculty of Business Management

Teachers

Included in study programs

General Management

Teaching results

Knowledge:
A comprehensive managerial approach to revenue management with a focus on current trends in dynamic revenue steering. Building a multi-pillar revenue management system in a company, focusing on strategic, tactical, and operational revenue management steps, behavioral aspects, optimization methods, and a revenue management control system that takes into account the dynamics of the external market environment and internal business processes, as well. Such a holistic management system can only be built if the basic management functions (planning, organizing, staffing, and leading people) are aligned with the stages of the decision-making process and the impact of decisions is monitored by means of performance indicators. This provides a comprehensive view of revenue management from a normative, descriptive, and prescriptive perspective. By applying the knowledge gained from the previous courses so far in the first and second study degree and expanding it with knowledge of revenue management, students gain a realistic idea of the complementary and competitive effects of managerial decisions in all functional areas of management that impact the sustainable profitability of a company.
Competence:
• Qualified knowledge of prescriptive, normative, and descriptive approaches to revenue management in relation to sustainable growth and the company's revenue model.
• Acquired in the development of a competency model for the position of "revenue manager."
• Effective acquisition of the right information, its processing and use in the decision-making process, under conditions of limited rationality and limited data availability.
• Implement effective team decisions throughout the sales management process using theories and methods.
• Understanding the interrelationships between limited capacity management, capacity overruns, forecasting, pricing, and functional areas such as marketing, sales, financial management, and strategic planning.
• Understanding the psychological aspects that influence revenue management outcomes in the context of behavioral economics.
Skill:
• The course develops skills in creating and managing a company's business strategy through a set of revenue management tactics and revenue models under real market information conditions, which are often based on risk and uncertainty.
• Students will acquire the skills to select and implement appropriate methods for quantifying the usefulness of impacts when solving well- or ill-structured decision-making problems in revenue management.
• The course builds analytical and data interpretation skills, enabling students to analyze larger data sets, identify sales management trends, and interpret market signals.
• Students will gain experience in creative problem solving. Developing new revenue models for changing market conditions and finding ways to coordinate market dynamics - responding quickly to changes in market conditions and, consequently, the structure of the business model.

Indicative content

Thematic definition of exercises:
1. Revenue management. Introduction to revenue management.
2. Revenue management. Integrated concept of dynamic product capacity management.
3. Revenue model as a systemic design of monetization.
4. Revenue management as a decision-making process for sustainable competitive advantage.
5. Revenue Management Pillar I: Revenue management strategy as an integral part of business strategy.
6. Pillar of revenue management II: Approaches to revenue optimization.
7. Revenue Management Pillar II: A managerial perspective on data-driven revenue management.
8. Revenue Management Pillar III: Behavioral aspects of revenue management.
9. Revenue Management Pillar IV: Revenue management control system.
10. Revenue Management Pillar IV: OKR (Objective-Key Results) Methodology.
11. Selected topics in revenue management. Practical decision-making rules for low-risk revenue management.
12. Specific topics in revenue management by industry. Service sector.
13. Specific topics of revenue management by industry. Manufacturing sector and FMCG.

Support literature

Basic literature:
1. HAYES, David K. - HAYES, Joshua D. -HAYES, Peggy A. Revenue management for the hospitality industry. Hoboken : John Wiley & Sons, 2021. 480 s. ISBN 9781119790778
2. OBATA, Hiroshi; HIKI, Fumiko (ed.). Revenue Management Theory and Practice: Theoretical and Empirical Research. World Scientific, 2025. 232 s. ISBN 9789811286940
3. CROSS, G. Robert. Revenue management : Hard-Core Tactics for Market Domination. New York: Crown, 2011. 288 s. ISBN 9780307788986.
4. KIM, Esther L. Hotel revenue management: The post‐pandemic evolution to revenue strategy. Family & Consumer Sciences Research Journal, 2023, 51.4. ISSN 1552-3934
5. DAVE, Roberts. Hotel Revenue Management: The Post-Pandemic Evolution to Revenue Strategy. New York : Business Expert Press, 2022. 146 s. ISBN 9781637421925
6. SZENDE, Peter. Hospitality Revenue Management: Concepts and Practices. Palm Bay : Apple Academic Press, 2020. 516 s. ISBN 9781000030792
7. HINTSCHES, André – SPENGLER, Thomas – VOLLING, Thomas – WITTEK, Kai –
PRIEGNITZ, Gerald. Revenue Management in Make-To-Order Manufacturing: Case Study of Capacity Control at ThyssenKrupp VDM. Business Research, Berlin : Springer International Publishing, 2010, roč. 3, č.2, s.173-190. ISSN 2198-2627.
8. SMITH, Tim. Pricing Strategy: Setting Price Levels, Managing Price Discounts, & Establishing Price Structures. Manson : SOUTH WESTERN EDUC PUB, 2012. 313 s. ISBN 978-1-111-57129-0.
9. REMEŇOVÁ, Katarína; MAJDÚCHOVÁ, Helena; KINTLER, Jakub. Pricing in creative industry. Kovac, Dr. Verlag, 2021. 216 s. ISBN 978-3-339-12346-6.
10. REMEŇOVÁ, Katarína; KINTLER, Jakub; JANKELOVÁ, Nadežda. The general concept of the revenue model for sustainability growth. Sustainability, 2020, 12.16: 6635.
Supplementary literature:
1 1.FIALA, Petr - MAJOVSKÁ, Renata. Multicriteria models in revenue management. Multiple Criteria Decision Making, 2023, 18: 29-46. ISSN 2084-1531
2 2. REMEŇOVÁ Katarína. Manažérske simulácie : manažment tržieb a cien v manažérskej simulácii Ludus. Bratislava : Vydavateľstvo EKONÓM, 2019. 103 s. ISBN 978-80-225-4652-2.
3 3. DILLER, Hermann. – KÖHLER, Richard. Preispolitik. Stuttgart : Verlag W. Kohlhammer, 2008, s. 576. ISBN 978-3-17-019492-2.
4 4. HERDE, Felix. Revenue-Management-Ansatz für eine Annahmesteuerung kundenspezifischer Regenerationsaufträge komplexer Investitionsgüter. Wiesbaden : Springer-Verlag, 2017, s. 269. ISBN 978-3-658-20730-4
5 5. KRAUSE, Hans-Ulrich – ARORA, Dayanand. Controlling-Kennzahlen - Key Performance Indicators. München : Oldenbour Verlag, 2010, s. 739. ISBN 978-3-486-59690-8
6 6. KLEIN, Robert – STEINHARDT, Claudius. Revenue Management. Grundlagen und mathematische methoden. Berlin : Springer Verlag, 2008. 251 s. ISBN 978-3-540-68843-3.
7 7. MEEHAN, M. Julie – SIMONETTO, G. Michel – MONTAN, Larry – GOODIN, CHristopher. Pricing and Profitability management. Singapore : Wiley Publishing, 2011, s. 320. ISBN 978-0-470-82527-3.
8 8. SIMON, Hermann. Preisheiten. Frankfurt : Campus Verlag, 2013, s. 288. ISBN 978-3593-50450-6.
9 9. TALLURI, Kalyan – VAN RYZIN, Garrett. The Theory and Practice of Revenue Management. New York : Springer, 2004. 713 s. ISBN 978-0-387-27391-4
10. VITHALA. Rao. Handbook of Pricing Research in Marketing. Glos : Edward Elgar Publishing, 2009, s. 616. ISBN 978-1-84720-240-6
11. YEOMAN, Ian – MCMAHON-BEATTIE, Una. Revenue Management: A Practical Pricing Perspective. Hampshire : Palgrave Macmillan, 2011, s.273. ISBN 978-0-230-24141-1.
12. ZATTA, Danilo. Revenue Management in Manufacturing. State of the Art, Application and Profit Impact in the Process Industry. Munich : Springer International Publishing, 2016, s. 129. ISBN 978-3-319-30239-3.
13. LEE, May – NEPAL, Brian. Analyzing cost-to-serve quantification methodologies in a wholesale industry setting. In: International Annual Conference of the American Society for Engineering Management : ASEM, USA, 18 October 2017. Huntsville : American Society for Engineering Management, 2017, s. 1-10. ISBN 978-1-5108-5160-3.

Syllabus

Thematic definition of exercises: 1. Revenue management. Introduction to revenue management. Historical development of revenue management. Prerequisites for applying the managerial concept of revenue management from the perspective of the product on the one hand and the organizational resources (material and human resources) on the other. Theory of limited resources in revenue management. Data – driven managerial view of revenue management. Goals and levels of revenue management. Revenue management software. 2. Revenue management. Integrated concept of dynamic product capacity management. EMSR process for setting protective limits for a multi-product portfolio. Stochastic, dynamic capacity management model. Limited preliminary search policy. 3. Revenue model as a systemic design of monetization. The revenue model with additional components, such as customer value proposition and relationships with partners or key partners, create the concept of business model profitability and define the form of monetization. The revenue model specifies the governance of revenue streams and how the individual components of the business model contribute to its creation. 4. Revenue management as a decision-making process for sustainable competitive advantage. The four pillars of revenue management: Revenue management strategy; Price optimization; Behavioral aspects of revenue management; Revenue management control system. Risks associated with implementing a revenue management system in a company. 5. Revenue Management Pillar I: Revenue management strategy as an integral part of business strategy. OKR (Objective – Key Results) methodology for strategy creation. Revenue management strategy as a fundamental business document declaring methods (tactics) for the systematic implementation of strategic plans. Strategy creation process accepting the criteria of "suitability," "acceptability," and "feasibility." Revenues management as an integrated decision-making process for optimizing revenues streams, compiled and managed by competent employees – Revenue manager competency model. 6. Pillar of revenue management II: Approaches to revenue optimization (through product capacities, price metrics, and prices). Methods for quantifying the usefulness of well-structured decisions in the revenue management system. Advanced methods – Analytical Network Process, TOPSIS. Dynamic approach to sales management using advanced CHAID and ID3 classification and decision trees. Bayesian probability theory. 7. Revenue Management Pillar II: A managerial perspective on data-driven revenue management. External data requirements. Kaplan-Meier event occurrence test; Association rule analysis (MBA analysis) of the product portfolio. The role of the revenue manager in the process of acquiring, processing, and using data in revenue management (emphasis on rational and intuitive decision-making styles). 8. Revenue Management Pillar III: Behavioral aspects of revenue management. Behavioral biases and psychological distortions. The influence of emotions (theory of disappointment and theory of regret) and hormones on the customer's decision-making process. Information theory (the process of quantifying, storing, and communicating information) and its application in creating a 3-step model of information processing in revenue management (psychophysics; heuristics and comparative evaluation; memory effect). 9. Pillar of Revenue Management IV: Revenue management control system. Evaluation and control systems in revenue management - KPI, OKR, V2MOM, OGSM, Lean/TQM approach. Key KPI‘s - REVpar, GOPpar, RRI (revenue risk indicator) and NRR (Net Revenue Retention). 10. Revenue Management Pillar IV: OKR (Objective-Key Results) Methodology for Revenue Management Control System – Comprehensive Case Study. 11. Selected topics in revenue management. Practical decision-making rules for low-risk revenue management. Linear programming method in revenue management. Revenue waterfall. 12. Specific topics in revenue management by industry. Service sector (transport, hospitality, arts). Presentations of semester projects. 13. Specific topics of revenue management by industry. Manufacturing sector and FMCG. Presentations of semester projects.

Requirements to complete the course

50% preparation and presentation of a semester project (min. 51%); 50% final exam – written test (min. 51%).

Student workload

78 h (participation in seminars 26 h, preparation for seminars 26 h, preparation for the assessment test 26 h)

Language whose command is required to complete the course

Slovak

Date of approval: 10.03.2025

Date of the latest change: 28.01.2026