New Post has been published on TRADE MASTER TEAM
New Post has been published on https://trademasterteam.com/forex-strategies/forex-strategy-optimisation/29745
FOREX Strategy Optimisation
forex is a really complicated area and it can be quite hard to understand in our experience online travel agents do not pay enough attention to their forex strategy and in fact most OTAs only pay attention to what rebate they're going to get from the virtual card supplier and in our opinion that's not enough on an average online travel agents pay as much as 2.5% 4Γ3 when dealing with such transactions now this doesn't sound like much in isolation but when you take the combined effect and if these transactions account for even one fifth of your total OTA spend it could be a huge problem our research shows that OTAs Forex costs account for as much as twenty three percent for the total payments costs so you can well imagine how much impact for us has on your business throughout the booking process because there are multiple touch points where OTS can incur forex they can really struggle and fail to optimize their forex strategies it could be as simple as failing to realize additional four extremities when it comes to acquiring consumer payments on their website or it could be a bit more complex for instance during the process of pre-funding their virtual card supplier who would be the best provider for them in terms of currency conversion process should it be their bank or should it be that virtual card supply itself and then finally when they have to deal with situations where they have to wake a virtual card payment in currencies that are quite exotic what do they do then so in a nutshell it is a very complex situation and I feel that just trying to tackle all these issues with a single strategy doesn't always work if an OTA is looking to optimizer on forex i would say that there are certain key areas where they could focus on right away first is when it comes to acquiring consumer payments now they could be a situation where as an OTA you're offering a air ticket price to your consumer in a local currency which is suitable to and then you expect your consumer to make the payment in their home currency now this is an area where OTS miss out on huge potential in terms of additional forex income to them they might want to reconsider their strategy and offer a dynamic currency conversion service to the consumers instead building on that during the pre funding process and OTA should work with the virtual card supplier for the currency conversion process and not choose their bank because virtual card suppliers tend to deal in currencies in scale and that's why they are in a much better position offer you a better rate of exchange and also charge you a minimal or no forex free at all and finally it is worth thinking about situations when you're dealing with exotic currencies that your virtual card supplier might not support so basically you're forced to make a payment in a currency which is different to your virtual card currency what do you do in that situation because not all virtual card providers can provide you with a whole range of currencies so all in all OTS have to look at a range of options to deal with the many complex scenarios around for X so if you're an online travel agent and experiencing some of these challenges discussed I think you should go out and talk to your word shall cut supplier and see how they might be able to help you out with it you








