Revenue Management and Exchange Rates Fluctuations: A Simulation Based on Air Tahiti Nui Experience

Jean Michel Chapuis () and Mathieu Bechonnet
Additional contact information
Jean Michel Chapuis: EIREST - Équipe interdisciplinaire de recherches sur le tourisme - UP1 - Université Paris 1 Panthéon-Sorbonne

Post-Print from HAL

Abstract: 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 due to 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 more than the relative spread between the mean fare of consecutive fare classes.

Keywords: revenue management; point of sale control; exchange rate fluctuations (search for similar items in EconPapers)
Date: 2009-05-15
References: Add references at CitEc
Citations:

Published in Journal of Revenue and Pricing Management, 2009, 8, pp.313-322. ⟨10.1057/rpm.2009.16⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00693994

DOI: 10.1057/rpm.2009.16

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().