The Hidden Cost of Exotic Travel Destinations

December 7, 2016

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.

 

ENDS

 

1. Phocuswright Payments Unsettled Report Europe, 2016
2. https://newsroom.mastercard.com/wp-content/uploads/2016/09/FINAL-Global-Destination-Cities-Index-Report.pdf
3. http://corporate.postoffice.co.uk/our-media-centre#/pressreleases/uk-holidaymakers-appetite-for-overseas-travel-remains-buoyant-despite-sterling-fall-1617177
4. eNett analysis of bank charges

 

More Press Releases

05 December 2018

eNett crowned winner at 2018 World Travel Awards

Company’s growth and dedication to driving innovation in B2B travel payments sees it named as the World’s Leading B2B Travel Payments Provider

Read more

13 August 2018

A double win for eNett at the 2018 Stevie Awards

Leading travel payments provider takes home Gold for Fastest Growing Company in APAC and Financial Services’ Executive of the Year.

Read more

23 July 2018

ENETT CELEBRATES TWO WINS AT 2018 GLOBAL BUSINESS EXCELLENCE AWARDS

Taking home two gongs at the 2018 Global Business Excellence Awards in the ‘Outstanding Executive’ and ‘Outstanding Customer Service Initiative’ categories.

Read more

28 May 2018

eNett Extends Currency Suite by Eighteen

eNett has just made international payments easier with the addition of eighteen new non-local settlement (NLS) currencies. This brings the comprehensive currency suite to 58, 20 of which offer local settlement.

Read more

11 April 2018

Chargeback enhancements

Chargebacks made even faster and easier with our new enhancements.

Read more

27 March 2018

eNett selects Nepal as the next beneficiary of ‘Repay the eNett Way’ 2018

Nepal announced as the next beneficiary of ‘Repay the eNett Way’ 2018. ‘Repay the eNett Way’ aims to improve the education and career opportunities for underprivileged communities in high tourism growth countries.

Read more

08 March 2018

Making raising chargebacks faster and easier

We're constantly reviewing our processes and making they easier, faster and safer for our customers

Read more

21 February 2018

Fraud costs travel intermediaries a whopping US$21 billion

We commissioned a new global study into fraud in travel payments. It showed travel companies are being highly targeted by fraud, with the total impact of fraud currently costing travel intermediaries nearly US$21B. The research predicts this could exceed US$25B by 2020.

Read more

13 February 2018

eNett International wins Best Digital Payments Programme at the Card & Payments Awards 2018

eNett Virtual Account Numbers scooped Best Alternative or Digital Payments Programme at the prestigious Card & Payments Awards 2018.

Read more

03 January 2018

Record-breaking year for eNett award wins

eNett International, a leading provider of B2B payment solutions for the travel industry, took home eight awards in 2017. These included four International Business Awards, two Global Business Excellence Awards, an International CSR Excellence Award and a TravelMole Award.

Read more

20 November 2017

eNett exceeds its fundraising target for Mellon Educate’s ‘Building Blitz’

eNett International, a leading provider of dedicated B2B payment solutions, exceeds its fundraising target for Mellon Educate’s ‘Building Blitz’ in South Africa. This is part of its “Repay the eNett Way” annual CSR initiative.

Read more

31 October 2017

A look back at ITB Asia 2017

eNett had its biggest ever presence at ITB Asia. Here are the highlights in pictures.

Read more

27 October 2017

eNett voted Best Travel Payment Solution Provider at Travelmole Awards 2017

eNett International wins Best Travel Payment Solution Provider at the Travelmole Awards for the second year. The TravelMole awards are the main award event for the Asia Pacific travel industry to recognise the best web, social, mobile and travel technology deployments.

Read more

26 October 2017

User Interface upgrades coming soon

We’ve been busy building an updated UI to make visibility of your VANs clearer than ever.

Read more

16 October 2017

New self-help portal coming soon....

We're enhancing the eNett Payments Portal so you can make changes fast and easy

Read more

A win for eNett at the 2018 TTG Travel Awards

Company’s growth and contribution to travel industry sees it take home the Travel Technology Company of the Year Award,

Read more

Leading travel payments provider takes home Gold for Fastest Growing Company in APAC and Financial Services’ Executive of the Year.

Read more