The Customer Valuations Game as a Basis for Teaching Revenue Management

I describe the customer valuations game, a simple intuitive game that can serve as a foundation for teaching revenue management. The game requires little or no preparation, props, or software; takes about two hours to play (and hence can be finished in one session); and illustrates the formation of classical (airline and hotel) revenue management mechanisms such as advanced purchase discounts, booking limits, and fixed multiple prices. I use the game to introduce revenue management and to develop revenue management forecasting and optimization concepts stemming from it. The game is particularly suited for nontechnical audiences.