Currency Management for Travel Companies
Protect your margins and remain profitable in a highly competitive and price-sensitive industry
Get your free company analysisFX management for travel players
Travel is one of the most digitalised industries. For many travel players, including hotels, tour operators, bedbanks, OTAs and flight consolidators, technology has brought disruption to almost every aspect of their businesses.
As part of this disruption, many players have embraced technology and foreign currencies to increase their competitiveness and drive growth. However, when it comes to FX risk, not everyone has managed to unlock their full potential in the safest way.
Working with our clients across the entire travel distribution chain, we see the following challenges affect multiple players time and again:
- Businesses that often buy at higher prices, due to the additional FX markups added by their suppliers
- Loss of competitiveness when selling in foreign currencies, due to prices not being aligned with the FX market
- Pre-hedging techniques that leave the company at risk of being under- or over-hedged and that impacts their competitiveness
- Ad-hoc hedging strategies (i.e. a non-policy driven way of picking ‘the right moment’ to hedge) that exposes company margins to market fluctuations
- Companies that have already reduced FX gains and losses by hedging from the invoice but still face economic losses due to FX
Hotels, tour operators, bedbanks, DMCs, OTAs, travel agencies and more, are using Kantox solutions to optimise their FX risk management and meet business goals
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Get the Travel Report
Download a copy of FX as a Disruptive Force in Travel Distribution. Based on real industry insights, we share:
- Why using one currency is riskier than many CEOs think
- How pricing is a key undercover FX tool to drive growth
- The advantages and downsides of different hedging strategies
- How companies use speculation in place of FX risk management
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Find out how this OTA which specialises in rail ticketing managed to decrease their manual workload, reduce the high conversion rates set by banks and increase their margins.
After implementing our solutions there were able to:
- Take full control of their FX risk
- Increase visibility and track the profitability of each sale
- Expand into new markets by selling in additional currencies
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Competition and consolidation are driving margins down to the extent that effective currency management can either be a crucial driver of growth or a barrier which stops companies from remaining competitive.
Our Travel FX specialists understand your business and are happy to speak to you about how technology and automation can address many of your business challenges.
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Key Benefits for Travel Companies
Travel clients that already use Kantox solutions to take control of their FX risk, pricing, payments or currency collection needs have reported greater profitability, competitiveness and client conversions.
Kantox solutions allow you to:
- Use micro-hedging to take control of your FX risk and safeguard profit margins
- Increase competitiveness and profitability by buying and selling in local currencies
- Support international expansion by easily selling in multiple currencies, without additional FX risk
- Automate FX risk management processes so your finance team can focus on more value-added tasks
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