Application

This unit describes the performance outcomes, skills and knowledge required to make, implement, and monitor pricing decisions to maximise yield and business profitability.
The unit applies to senior personnel who work autonomously and are responsible for making strategic business decisions.
It applies to supplier organisations in the tourism, travel and hospitality industries, in particular to the accommodation, tour operations and tour wholesaling sectors.
The skills in this unit must be applied in accordance with Commonwealth and State/Territory legislation, Australian/New Zealand standards and industry codes of practice.
No occupational licensing, certification or specific legislative requirements apply to this unit at the time of publication.

What You'll Learn

Assessment Requirements

Performance Evidence

Evidence of the ability to complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and:
• using each of the following at least once, develop, implement and monitor a total of six different pricing initiatives for:
• products
• services
• trading periods
• market segments
• determine the relevance of the following factors when developing each of the above pricing initiatives:
• revenue management principles
• industry distribution and marketing considerations.

Knowledge Evidence

Demonstrated knowledge required to complete the tasks outlined in elements and performance criteria of this unit:
• key principles and terminology of revenue management:
• dynamic and static pricing
• market penetration index
• matching supply and demand
• performance metrics
• perishability
• responsiveness and timing
• revenue generation index
• shaping demand through price
• types of business performance data used in revenue management:
• financial reports
• historical trends
• market analysis
• no-show reports
• occupancy and load reports
• sources of business
• supply and demand analysis
• mechanisms and collateral that support initiatives in different market segments:
• channel management systems
• global distribution systems
• online requirements:
• promotions
• proprietary websites
• third party websites
• types of promotions
• sector-specific factors that impact revenue management initiatives:
• financial:
• fixed and variable operating costs
• profit margin requirements
• industry commission and mark-up procedures
• cost of distribution networks
• external market factors:
• competitor activity
• complementary activity
• travel capacity
• special conditions:
• block out dates
• inclusions
• payment requirements
• stay controls
• aspects of consumer protection law that impact on pricing and distribution.

Assessment Conditions

Skills must be demonstrated in an operational business environment. This can be:
• an industry workplace; or
• a simulated industry environment set up for the purposes of assessment.
Assessment must ensure access to:
• current information and communications technology
• current industry and business data.
Assessors must satisfy the Standards for Registered Training Organisations’ requirements for assessors.

Foundation Skills

• {'skill': 'Reading skills to:', 'description': 'interpret business performance information.'}
• {'skill': 'Numeracy skills to:', 'description': 'analyse business performance data; calculate different commission and mark-up structures; assess profitability scenarios.'}
• {'skill': 'Problem-solving skills to:', 'description': 'interrogate business information and develop business strategies in response; develop strategic responses to business performance challenges.'}
• {'skill': 'Technology skills to:', 'description': 'work with financial and forecasting models and online distribution channels.'}

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