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Elements and Performance Criteria

  1. Analyse and forecast business activity.
  2. Make pricing decisions.
  3. Implement pricing decisions.
  4. Monitor pricing initiatives.

Required Skills

Required skills

critical thinking skills to interrogate complex business information and develop business strategies in response

initiative and enterprise skills to recognise or proactively seek new opportunities

literacy skills to

interpret complex business performance information

numeracy skills to

analyse business performance data

calculate a range of different commission and markup structures

calculate a range of different commission and markup structures

assess profitability scenarios

develop pricing structures

planning and organising skills to coordinate timely analysis and decisionmaking

problemsolving skills to develop strategic responses to business performance challenges

technology skills to work with financial and forecasting models and online distribution channels

Required knowledge

key principles and terminology of revenue management

dynamic and static pricing

matching supply and demand

shaping demand through price

perishability

responsiveness and timing

performance metrics

revenue generation index

market penetration index

types of business performance data used in revenue management

sources of business

financial reports

historical trends

market analysis

occupancy and load reports

noshow reports

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

sectorspecific factors that impact revenue management initiatives

financial

fixed and variable operating costs

profit margin requirements

industry commission and markup procedures

industry commission and markup procedures

cost of distribution networks

external market factors

competitor activity

complementary activity events

travel capacity

aspects of consumer protection law that impact on pricing and distribution

providing services as advertised

terms and conditions

refund requirements

cancellation fees

credit card surcharges

Evidence Required

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria required skills and knowledge range statement and the Assessment Guidelines for the Training Package

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the ability to

develop implement and monitor pricing initiatives for multiple products trading periods and market segments

integrate knowledge of

revenue management principles

financial factors affecting revenue management

industry distribution and marketing considerations

Context of and specific resources for assessment

Assessment must ensure use of

a real or simulated business operation for which revenue management initiatives can be developed

current information and communications technology

current industry and business data

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge The following examples are appropriate for this unit

evaluation of completed pricing structures for specific products trading periods and market segments

use of case studies to assess ability to analyse business data and develop effective pricing in response

written or oral questioning to assess knowledge of industry interrelationships distribution networks markup and commission structures and legal requirements

written or oral questioning to assess knowledge of, industry interrelationships, distribution networks, markup and commission structures and legal requirements

review of portfolios of evidence and thirdparty workplace reports of onthejob performance by the individual

review of portfolios of evidence and thirdparty workplace reports of onthejob performance by the individual.

Guidance information for assessment

The assessor should design integrated assessment activities to holistically assess this unit with other units relevant to the industry sector workplace and job role for example

SITTPPD Research and analyse tourism data

SITTPPD Develop tourism products


Range Statement

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Special conditions may include:

block out dates

inclusions

payment requirements

stay controls.

Internal and external partners may include:

external organisations:

agency networks

global distribution systems

local, state or national tourism organisations

own website managers

third party website managers

internal colleagues:

accounting

front line service

management

sales and marketing.