Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .

Top Stories

THE HIDDEN COST OF EXOTIC TRAVEL DESTINATIONS
THE HIDDEN COST OF EXOTIC TRAVEL DESTINATIONS

Published : , on

Trend for far-flung destinations leaves travel agencies managing more currencies than ever before 

New research from eNett International, the leading provider of dedicated B2B travel payment solutions, has found that European travel companies trying to keep up with the growing consumer demand for exotic holidays are being impacted by additional costs as they manage more currencies and multiple exchange rates.

The research, carried out by market research firm Phocuswright, revealed that the number of European travel companies accepting payments in more than ten different currencies has doubled from 6% to 12% in the past three years1. Moreover, there is a core group of travel agencies going even further to meet the needs of adventurous tourists, with 6% now grappling with over 50 different currencies1.

This shift is driven by growing consumer demand to visit travel destinations further afield, with MasterCard’s Global Destination Cities Index finding that, of the top 20 city destinations across the globe, Osaka, Tokyo, Seoul, Bangkok and Dubai were the fastest growing in 2015/20162. Overall, the latest Index found that cities in Asia-Pacific are increasingly becoming the ‘go-to’ destinations, followed by those in the Middle East & Africa and Latin America.

While this presents opportunities for travel companies to do business in new markets, it also means additional foreign exchange and cross-border fees as well as increased administration costs. eNett’s analysis shows that European travel companies relying solely on their bank for international payments could be paying up to 3% more compared to alternative options3 – a cost which could significantly erode margins.

eNett CEO and Managing Director, Anthony Hynes, said “Some travel agencies find the cost of international payments outweigh the benefits of offering such diverse content but the trend for exotic holidays can’t be ignored. Instead, travel companies should be looking to alternative solutions which better match modern consumer trends. This includes offering local funding and settlement which significantly reduces costs, through to real-time conversion that allows agents to lock-in rates at the time of booking to protect from negative FX fluctuations. Taking the simple step to re-examine cross-border payment strategies will allow agencies to satisfy customer demand while keeping costs low.”

To find out more about the hidden cost of international payments visit our dedicated cost of payments hub.

Uma Rajagopal has been managing the posting of content for multiple platforms since 2021, including Global Banking & Finance Review, Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune. Her role ensures that content is published accurately and efficiently across these diverse publications.

Global Banking & Finance Review

 

Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!


By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post