Elements describe the essential outcomes of a unit of competency.

Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide.

1. Analyse and forecast business activity.

1.1 Analyse existing performance data and budget targets.

1.2 Interrogate and compare sources of business activity from different distribution channels and market segments.

1.3 Evaluate external market factors, competitor activity and changing customer demand patterns.

1.4 Develop scenarios and forecasts around future business performance and revenues.

2. Make pricing decisions.

2.1 Confirm nett delivery costs, both fixed and variable.

2.2 Review and incorporate distributor commissions or mark ups.

2.3 Set standard and promotional rates for different times, trading periods and market segments based on analysis of forecasts and pricing options and optimum yield.

2.4 Assess the need for special conditions and apply as required.

2.5 Clearly and accurately document pricing structures and associated terms and conditions with consideration of consumer protection requirements.

3. Implement pricing decisions.

3.1 Communicate pricing initiatives to colleagues and to internal and external partners and distribution channels.

3.2 Establish mechanisms and collateral to support pricing decisions in different market segments.

4. Monitor pricing initiatives.

4.1 Monitor revenue results achieved through pricing and distribution initiatives on a timely basis.

4.2 Adjust initiatives based on results and broader business and market analysis.

4.3 Record performance data for future analysis.

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

assess profitability scenarios

develop pricing structures

planning and organising skills to coordinate timely analysis and decision-making

problem-solving 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

no-show 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

sector-specific factors that impact revenue management initiatives:

financial:

fixed and variable operating costs

profit margin requirements

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.

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

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:

SITTPPD503 Research and analyse tourism data

SITTPPD601 Develop tourism products.

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.