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.

FX CHALLENGES

AERTiCKET’s treasury team was overwhelmed by the heavy manual FX management workload that needed to be done. There was significant FX risk due to the increase in FX revenue growth since the company increased their internationalisation. This was affecting the team’s efficiency and precluding 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 an FX system in place. Instead, an effective currency management strategy was needed 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 discovered how much easier the FX management workflow could be. They implemented a micro-hedging program that fitted their business model needs. This allowed them to handle frequent pricing updates and hedge their foreign currency sales in a more timely manner.

Moreover, Kantox API connectivity provided the team with fully automated integration. As a result, AERTiCKET streamlined the collection of their foreign currency exposure data while also removing costs and operational risks.

THE BENEFITS

After implementing Kantox Dynamic Hedging®, AERTiCKET was able to automate their end-to-end FX workflow. This allowed the Treasury team to save time to focus on more value-adding tasks.

Their FX management is now executed according to business rules and parameters that the firm’s risk managers set. By having a currency management automation solution in place, they were able to achieve large-scale international expansion without higher personnel costs or major FX risks.

COMPANY STATS

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

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.

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