Revenue management and the price of education

Might a hospitality industry revenue management model work for higher (or post compulsory) education? This is a question that Kate Varini has recently explored with me in a paper (in submission – link to come). We probably need to further examine the similarities and differences between post compulsory education and the hospitality industry. I suspect there is more overlap than many in HE would like to see, but I also expect that there are key differences which might challenge such an approach. In principle I am in favour or pricing models which subsidise some participants. Where the subsidy is generated, how it is generated, and whether the subsidisers need to receive a different level of service are questions to be addressed. For education there has been an important notion of civic or national good, which is (or was) subsidised through the tax system, with all participants receiving (nominally, anyway) the same service. What value incentives can be offered to the subsidisers in order to allow more or less equivalent service to the subsidised? At the moment we are testing a “freemium” model in our fslt open online course. Everyone can participate for free but only those who pay get tutor feedback and academic credit. Could revenue management concepts such as advanced purchase discounts or bulk purchase discounts or late-place price auctions work for academic credit? Last minute education .com? Groupon for learning?

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