For players in a very dynamic sector… FX Solutions for the Travel Industry


Hotel Bedbank Airline


INDUSTRY SEGMENTS


OTA Operator Tour INDUSTRY CHARACTERISTICS DMC Dynamic pricing High volume of daily, small and multi-currency transactions


Multiple currency pairs due to more globalised participants


Time gap between bookings, collection and payments


...with global supply chains…


PURCHASING IN LOCAL CURRENCY


Broadens the range of potential suppliers


Avoids inflated prices from


suppliers looking to protect themselves from FX risk


Allows firms to take advantage of forward points TRAVEL COMPANIES SELLING IN LOCAL CURRENCY


Increases competitiveness as FX markups are not passed on to customers


Enables firms to expand sales in new markets


Allows firms to take advantage of forward points


...embracing currencies and mitigating FX risk is crucial. Pricing


Bookings (purchase, sale)


Invoice to client (receivable)


Collection & conversion


Invoice from supplier (Payable)


Payment to Supplier


PRICING FX RISK TRANSACTION FX RISK


Hedging cash flows from the moment of the booking


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