Abstract
A Revenue Management system helps to optimize products inventory across various markets and points of sale. However, fare classes may contain prices in different currencies for an international airline. Since the EUR/USD exchange rate fluctuates largely for the last year, the motivation of this research is know whether booking limits and bid prices are sensitive to exchange rate movements. We support that exchange rate fluctuations may change the airline's preferences for fare classes across points of sale. Our results point out that a stronger national currency implies to close foreign points of sale earlier and that bid prices decrease when the home currency strengthens against a foreign currency. The experience of Air Tahiti Nui shows that Revenue Managers carefully monitor exchange rate when they fluctuate more than the relative spread between the mean fare of consecutive fare classes.
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