Creating new revenue potential from foreign exchange
Creating new revenue potential from foreign exchange Discover how owning the cross‑border currency conversion process could improve the customer experience while increasing margins on ticket sales.
We know navigating foreign exchange (FX) is a frustrating experience at best, and a costly one at worst. Payment with different currencies can be a stressful process for travelers unaware of exchange rates, particularly when there are often hidden charges and markups added at the point of sale.
By its nature, travel is innately cross-border, so overcoming the industry challenge of making international payments smooth and pain-free should increase cross-border travel. Additionally, hidden costs are also unwelcome, with up to 50% of travelers unaware they are even being charged these costs as our own research has uncovered.
For airlines, payments technology has created new opportunities to improve the currency conversion experience for their customers, while also obtaining potential revenue on their ticket margins in return. Additionally, by having the ability to offer and own the currency conversion process, they could potentially double the net profit on an airline ticket, as our eGuide explains.
For the customer, airlines can provide transparency, choice and convenience at checkout, offering a more compelling customer experience, which everyday consumers don’t always get from issuing banks offering similar services.
This can be seen with payment technologies, such as Multi-Currency Pricing, which allows travelers to see the final, accurate cost in real time at any point in the booking process, with ‘spreads’ included, which translates to direct currency conversion revenue for the airline.
Airlines are positioned to offer compelling and profitable FX experiences on ticket sales
With demand for multi-currency solutions on the rise, airlines that take on the FX process can leverage this trend to their advantage. In normal circumstances, however, they also need to take on the risks associated, such as intraday FX rate fluctuations, while ensuring the customer isn’t under or overcharged. Multi-Currency Pricing solution such as Outpayce’s FX Box can help to alleviate these risks by providing a transparent, automated approach to currency conversion that integrates with the wider travel technology ecosystem. Our solution cuts out intermediary steps, allowing airlines to choose from a variety of operating models and build a flexible FX strategy designed for modern global travel markets.
If you’re ready to leverage the Multi-Currency Pricing opportunity, find out how in our eGuide to currency conversion:
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