Equiniti International Payments is pleased to announce that it has become a registered partner of ABTA, The Travel Association, to provide assured and accurate global payments on behalf of organisations within the travel trade.
ABTA is the UK’s largest travel association, representing travel agents and tour operators that sell £32 billion of holidays and other travel arrangements each year. Equiniti International Payments’ Multi-currency Pricing solution and guaranteed rates tool allows both B2C and B2B travel businesses to sell to their customers in local currency whilst negating foreign currency risk.
Travel businesses must make it as easy and efficient as possible for customers to pay in their local currency, without creating undue exposure to currency fluctuations and risking potential cost implications.
When a customer purchases a holiday, the business commits to paying their suppliers on or before the date of travel, whether six days or six months from the date of purchase. This period of lag time can represent a substantial risk whereby the currency a customer has paid differs to the currency the business owes to the suppliers; a small exchange rate move can have a disproportionately big effect on margins and may even lead to losses.
Businesses have typically turned to forward contracts to mitigate this risk but it’s a costly, inaccurate and sometimes complicated process. Equiniti International Payments’ guaranteed rates removes the need for forwards and provides organisations with a tool that can hedge risk on every sale in real-time.
Through the partnership, Equiniti International Payments will gain exposure to ABTA’s 1200 members across the travel industry.