INTERVIEW
WORDS MAT THEW PARSONS
HEN A COMPANY ENGAGES with a specialist like International SOS, you’d assume their relationship would revolve around travel secu- rity risks. But for Caxton FX, risk comes in the form of currency fluctuations. The value of the pound can rise or fall 10
RISKY BUSINESS W
PROFILE Rupert Lee-Browne is
per cent within a single week against some currencies, and on some transactions travel- lers can lose the same percentage by paying in sterling rather than a domestic currency. As a result travel buyers and their TMC advisers should think more strategically when sending staff abroad, argues Caxton’s chief executive Rupert Lee-Browne – and, in particular, as Brexit negotiations intensify. “As Brexit approaches, we’re only going to see more volatility with Sterling,” he warns. “There’s a big opportunity for TMCs to help their customers. When you buy travel, it tends to be international, but many companies don’t use a forex special- ist for travel expenses… using something like an Amex card, it’s an easy way, but it’s not the cheapest. TMCs can add value for their clients on foreign exchange.”
ADDING VALUE
“The corporate travel sector is growing phe- nomenally quickly,” Lee-Browne continues. He believes that as the direct-connect trend continues and suppliers increasingly seek to plug directly into corporates, TMCs can use forex as an extra value-add. “Hotel groups are starting to bite into TMCs’ business,” he says. “But corporates go to TMCs for the full service. Hotels won’t be offering risk management, so TMCs have a better chance to forge better relationships.” Lee-Browne believes there are clear advantages for expense management: “With Caxton’s travel card scheme, the financial controller can see the expenses, reconcile them, load or block funds for any number of users. They are able to buy currency before it’s spent which gives financial certainty.”
chairman and chief executive at Caxton FX, which he founded in 2002. Previously, he was a director at Eggsbenefit, an online system for caterers and suppliers he co-founded in 1998.
Buyers and TMCs should be filing overseas expenses under ‘risk’, says Caxton FX’s CEO Rupert Lee-Browne
He also points out that Caxton can provide a “buy- back guarantee” – “We guar- antee the rate in the event that funds are not used, so that gives corporates peace of mind.” This kind of hedging as a service can limit the downside for a TMC’s cus- tomer, but with sophisticated hedging tools they can participate in the upside in certain circumstances, he adds. When it comes to buying currency, it can either be the TMC or their client that decides when to purchase. “It depends on the relationship and what the customer wants,” Lee-Browne adds. “It’s about removing friction for them.”
As well as corporate travel, Lee-Browne says Caxton has a significant share of the education travel market. “The number of school trips is growing considerably,” he says. “With teachers having to manage the expenses it is imperative for them to have a straightforward solution.” The travel industry may be having its own “back to school” moment soon as Brexit ap- proaches and rewrites the rules on currency.
40
NOVEMBER/DECEMBER
2018
buyingbusinesstravel.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123
