Service Analytics Research Group

Revenue Management

Lecture and exercise course for master students

Prof. Dr. Catherine Cleophas (lecture)
Lena Hörsting (exercise course)



Revenue Management considers the formulation and solution of tactical and operative pricing problems given methods of operations research. It is based on the sophisticated implementation of quantitative, computer-based planning approaches aiming to maximize revenue. The main instruments are demand forecasting, pricing, capacity-controls, and overbooking. Major application areas are in the service sector, particularly airlines, car rental companies as well as hotels and restaurants. Other application areas include peak-load pricing for energy or telecommunication suppliers as well as mark-down management in the retail industry. 


The course will cover the following basic topics as well as selected advanced methods:
  • Revenue mangement objectives, conditions, and planning process
  • Concepts of price differentiation
  • Capacity Controls: For single and multiple resources as well as given independent and dependent demand models
  • Demand estimation and forecasting
  • Customer choice modeling
  • Overbooking
  • Dynamic Pricing


Participants gain theoretical background knowledge in the following areas:
  • requirements and conditions of revenue management and pricing
  • approaches to demand estimation and forecasts
  • capacity- and price-based revenue optimization models
  • static and dynamic overbooking models
They also gain hands-on experience in applying these concepts to case scenarios in
  • applying revenue management concepts to new application areas
  • extending their understanding of a topic in ongoing development through state-of-the-art research papers



  • None



  • Klein, Steinhardt: Revenue Management – Grundlagen und mathematische Methoden, 2008
  • Talluri, van Ryzin: The Theory and Practice of Revenue Management, 2008​​​​
  • Further literature is announced during the module


Further information:


Detailed information, room numbers, times and dates of lectures, tutorials and exams will be published on UnivIS and OpenOLAT.