Skip to main content

Revenue management and exchange rate fluctuations: A simulation based on Air Tahiti Nui's experience

Buy Article:

$44.95 plus tax (Refund Policy)

Fare classes may contain prices in different currencies for an international airline. This paper questions whether booking controls are sensitive to exchange rate movements. The analysis illustrates that a stronger national currency results in the closing of foreign points of sale earlier because of a direct effect on the value of foreign fares and an indirect effect on bid prices. Bid prices, as an average of national and foreign fares, are decreasing when the home currency strengthens against a foreign currency. The experience of Air Tahiti Nui shows that Revenue Managers carefully monitor exchange rate when fluctuations are bigger than the relative spread between the mean fare of consecutive fare classes.Journal of Revenue and Pricing Management (2009) 8, 313–322. doi:10.1057/rpm.2009.16; published online 15 May 2009
No References
No Citations
No Supplementary Data
No Article Media
No Metrics

Document Type: Research Article

Publication date: 2009-08-01

  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more