ABSTRACT
We present a classroom role play to immerse students in the difficulties of applying value-based pricing principles to the practice of B2B price negotiations at different levels of the hotel value chain. The students assume roles as hotel chain and individual hotel management and as key business clients to the individual hotels. Through strategic and tactical preparations that rely on incremental additions of information on the goals, students prepare themselves to negotiate aspects linked with B2B pricing in a hotel revenue management context and collect points based on their success. After the negotiations, they systematically reflect on their performance vis-a-vis their set intentions. The role play is targeted to be an assignment in master's level hotel revenuemanagement teaching, but it could bemodified to target bachelor's students or other fields in which value-based pricing is still at its infancy. Based on our experience with running the game in a classroom as well as twice remotely because of COVID-19, it is compatible with both forms of learning and could potentially be extended to an asynchronous online learning environment. © 2022 The Author(s).
ABSTRACT
The potential health and economic value of a vaccine for coronavirus disease (COVID-19) is self-evident given nearly 2 million deaths, "collateral" loss of life as other conditions go untreated, and massive economic damage. Results from the first licensed products are very encouraging; however, there are important reasons why we will likely need second and third generation vaccines. Dedicated incentives and funding focused explicitly on nurturing and advancing competing second and third generation vaccines are essential. This article proposes a collaborative, market-based financing mechanism for the world to incentivize and pay for the development of, and provide equitable access to, second and third generation COVID-19 vaccines. Specifically, we propose consideration of a Benefit-Based Advance Market Commitment (BBAMC). The BBAMC uses health technology assessment to determine value-based prices to guarantee overall market revenues, not revenue for any specific product or company. The poorest countries would not pay a value-based price but a discounted "tail-price." Innovators must agree to supply them at this tail price or to facilitate technology transfer to local licensees at low or zero cost to enable them to supply at this price. We expect these purchases to be paid for in full or large part by global donors. The BBAMC therefore sets prices in relation to value, protects intellectual property rights, encourages competition, and ensures all populations get access to vaccines, subject to agreed priority allocation rules.