While this figure acts as a proxy for the recovery in international travel – with foreign trips resulting in the need for foreign exchange B2B travel payments between travel intermediaries and both airlines and hotels – and is therefore to be welcomed – the near fivefold increase in FX payments brings the great majority of travel companies a new “high-class problem headache” once again.
Spencer Hanlon, Head of Travel at Nium, a B2B travel payments specialist which conducted the research, commented: “Over two years have passed since many travel companies last saw a peak booking period in international travel.”
“Naturally many have been distracted by other more important things since then: namely surviving.”
“So understandably many have probably forgotten about the headache that B2B foreign exchange (FX) payments can bring them: high costs, delays, time consumed, and risks. Clearly this is a high-class problem to have back on the agenda, but it is one that nonetheless is costing the great majority of travel businesses dearly. In fact I’d go as far as to say that some companies quite possibly didn’t fully factor this cost into their pricing when forecasting and preparing for the recovery.
“There are however many modern technology solutions that can resolve this problem to massively reduce the transaction fee, gain access to fairer rates, speed up the payment, and both satisfy and streamline all the back-office needs a business might have. And it really doesn’t require much time or effort to resolve once the right solutions are found.
“At a time when inflation is raging, interest rates are rising, and many no doubt have debts from COVID, solving your FX problems could make a significant difference to the health of your business.”
Similarly, based on data collected by a mobile data plan used when traveling internationally, Ubibi e SIM has determined that the first quarter of 2022 is showing positive signs of recovery. Most countries have dropped travel restrictions which likely accounts for the increase in global movement.