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Segmentation and Price Optimization

Credential Earned: 

Course Focus

Segmenting the customer base is critical to developing a variable pricing scheme. By identifying core groups of customers and their purchasing habits, managers can target them accordingly by setting prices that will help them win business over their competition. Without proper segmentation, however, dynamic pricing can backfire, which can alienate consumers and turn them into perpetual deal-seekers.

This course expands upon the central concepts in revenue management—RevPAR (Revenue Per Available Room) and RevPASH (Revenue Per Available Seat Hour)—with the goal of selling the right room or reserving the right table for the right person at the right time. Participants will be able to get their organization to properly manage inventory and use market-based pricing to maximize revenue.

If participants can achieve a workable segmentation and variable pricing scheme, they won’t need to adjust prices as often. Many hotels and hospitality organizations have used stable prices to create a marketing advantage, by providing stable rates for customers who appreciate consistency. Finding the right mix in variability and stability in pricing, and setting upgrade policies, are what generate repeat business from happy customers and create an environment for sustained profitability.

Who Should Take this Course?

This course is designed for general managers, revenue and finance managers, operations, sales, marketing and other hospitality professionals who are responsible for the financial performance of their organization. Professionals with at least 3 years of experience in their industry will see the greatest benefits. This course provides advanced instruction in revenue management and teaches the industry-critical skills and advanced techniques used by top performers the world over.

Key Benefits

Participants who complete this course will be able to…

  • Make smart pricing decisions based on market segmentation
  • Evaluate the relationship between segmentation and discounting
  • Understand variable versus dynamic pricing
  • Predict the diluting impact of poor segmentation
  • Use inventory management, price optimization and market-based pricing techniques
  • Develop an upgrade policy, and evaluate its marginal value


Estimated Hours to Complete Course: 6.0

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About the School of Hotel Administration at the Cornell SC Johnson College of Business

The School of Hotel Administration at the Cornell SC Johnson College of Business is shaping the global knowledge base for hospitality management through leadership in education, research, and industry advancement. Accredited by the Association to Advance Collegiate Schools of Business (AACSB), the school provides management instruction in the full range of hospitality disciplines, educating the next generation of leaders in the world's largest industry. Founded in 1922 as the nation's first collegiate course of study in hospitality management, the Cornell School of Hotel Administration is recognized as the world leader in its field.

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