Overview

Australian travel and tourism businesses face a unique set of FX challenges. Inbound tourism generates revenue from multiple source markets — USD, GBP, EUR, JPY, SGD, CNY — while outbound operators pay overseas hotels, airlines and ground services in local currencies, often months before the client’s trip takes place.

That time gap between booking and settlement is where FX risk lives. A package priced in AUD six months before departure can see its margin evaporate if AUD weakens against the supplier currencies before payment falls due. Cancellations and reconciliations are another threat to profits.

Smart Currency Business works with Australian travel clients to protect margins from currency volatility, using a sector-specific approach that addresses the biggest issues the industry faces, from seasonal booking patterns and cancellation risk to developing payments platforms that help you scale.

Key challenges

Booking-to-departure currency risk: Packages are priced months before supplier payments fall due in foreign currencies. Any adverse currency movements in that window threatens profits.

Multi-currency supplier payments: A single itinerary may require payments in four or five currencies. Without coordinated hedging, each payment carries its own risk and transaction cost.

Seasonal demand patterns: Australian travel businesses often have pronounced seasonal peaks. Risk strategies need to reflect the cashflow rhythm of the booking cycle.

Cancellations and amendments: Trip changes create complexity. Forward contracts need to be structured with enough flexibility to accommodate volume adjustments without penalty.

How we help

Smart Currency Business implements comprehensive strategies that protect your profits across the booking curve.

We offer a wide range of solutions tailored to the travel industry’s need for flexibility and certainty.

Dedicated sector specialists provide relevant market insights and keep you ahead of the trends affecting AUD and your key supplier currencies.