FX Risk Management and International Payments for the Travel Industry
The 3 Biggest Challenges Facing Canadian Travel and Tourism Companies
Easily Make Worldwide Payments and Find Exotic Currencies
Looking to buy Moroccan Dirham? The Thai Baht? Some French Polynesian Francs? We have access to many hard-to-find currencies. With our established global banking network, transferring money across borders doesn’t need to cause a world of headache.
Predicting Future Foreign Currency Rates
More than 1 out of every 3 travellers book their vacation more than 5 months in advance. While this is beneficial in terms of filling packages and advanced planning for tours, it often leaves a significant time gap between money collection and vendor payout. In the span of a few months, a foreign currency can fluctuate considerably, potentially leaving a tourism company with a big cash flow problem.
- If a collection of globetrotters paid for an upcoming adventure to NYC at the end of January 2019 in CAD, the Canadian dollar would have been enjoying a better-than-average rate against the American currency.
- Fast forward to the June departure when the USD rose 473bp against the CAD.
- During the course of the tour, the travel company would have to pay out the local guides, but their allocated funds would be worth less.
- By June 2019, the $10,000 CAD payment would be worth $473 less
- A $50,000 CAD payment would be worth $2,365 less
You can lock-in exchange rates for up to one year via our flexible Forward Contracts, helping you eliminate uncertainty and empowering you for optimal budget management. Note currency fluctuation is unpredictable and a spot could rate can be more favourable than a forward contract.
Sending Emergency Cash Overseas
Many industry professionals know that you can’t plan for all scenarios. Despite every precaution, tours and vacations will sometimes face cancelled flights, weather detours and unexpected expenses. The ability to transfer local currency quickly and efficiently to personnel on the ground can make the difference between a small inconvenience and a ruined vacation. Luckily, we have Agent locations virtually everywhere, ready to transfer funds to your employees. In fact, we have nearly 10x more locations than Starbucks™ and McDonald’s™ combined.
Contact us for a Free Review of your Foreign Exchange Exposure
Our currency specialists will evaluate your international payments to determine strategies for cost-savings and efficiency.
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