How AERTiCKET improved its hedging with Currency Management Automation

AERTiCKET is one of the largest independent airline wholesalers in Europe. Their primary business is the brokerage of airline tickets to travel agencies, tour operators and Online Travel Agencies. They are headquartered in Germany, but they also have subsidiaries in the USA, France, Spain, UK, Poland, Austria, Switzerland and Turkey. As a result, AERTiCKET cooperates with many consolidators worldwide to offer airfares and availability from over 100 countries.

AERTiCKET’s Treasury team was overwhelmed by the heavy manual FX management workload that needed to be done. But there was a significant increase in FX risk coming from revenue growth since the company increased their internalisation. This was affecting the team’s efficiency and hindering the benefits of operating in foreign currencies.

To make matters worse, the changing and unpredictable nature of the firm’s hedging requirements made it very difficult for AERTiCKET to put a FX system in place. Instead, an effective currency management strategy should be able to support the constant pricing changes. That’s why the team was looking for an alternative that could improve their processes.

THE SOLUTIONS

When the airline wholesaler found Kantox, they saw how much easier the FX management workflow could be. They implemented a micro-hedging program that fit their business model needs to handle the frequent pricing updates. This allowed them to hedge their foreign currency sales in a more timely manner.

Moreover, Kantox API connectivity gave the team the possibility to have a fully automated integration. As a result, AERTiCKET streamlined the collection of their foreign currency exposure data. While also removing costs and operational risks.

This way, AERTiCKET automated the entire FX workflow from end to end after putting the Kantox Dynamic Hedging® solution in place. This allowed the Treasury team to save time to focus on more value-adding tasks.

Now, their FX management is executed following business rules and parameters that the firm’s risk managers set. With a currency management automation solution they are more in control of their FX currencies. And, they are able to achieve large scale international expansion without higher personnel costs or major FX risks.

Treasury teams at travel companies like AERTiCKET can have full control over their FX risk. They can leverage foreign currencies in their FX management strategy, even with a complex pricing structure. And they are able to grow faster and protect their margins with the right automation solution.

Book a free strategy session today to talk with one of our currency management specialists and find the currency management strategy that fits your needs.

Find the solution for your industry’s specific needs

Technology isn’t one size fits all. Our industry specific solutions are engineered to fit your sector’s distinct needs and goals.

Travel

Scale your business and increase margins by pricing, buying and selling in foreign currencies — with no currency risk.

Adtech

Differentiate yourself by providing publishers and brands with a local currency experience and accurate performance reporting, without putting your margins at risk.

Food

Protect margins and take advantage of favourable movements in currency markets while eliminating the FX risk in your transactions.

Chemicals

Combine budget-based hedging and transactional micro-hedging to secure margins while expanding internationally.

Mechanical Engineering

Create value for your business. Increase margins and reduce risks while pricing and selling in foreign currencies.

Pharmaceutical

Whether you look for ways to increase profit margins or to protect your budget from FX volatility, automated hedging programs provide the right formula for your business.