With the lucrative summer vacation season just around the corner, we explain why online travel companies that execute live currency conversions for redisplay on their website will be best placed to project the latest rates to customers.
From rising inflation to interest rate differentials, global exchange rates are currently in a state of flux. And for those immersed in the online travel sector, a fluctuating dollar against other major currencies is having a direct effect on business. It is not hard to see why as travel, perhaps more than any other industry, is at the mercy of the latest exchange rates.
Many people, of course, define their holiday choices by whether exchange rates are up or down. For example, when the dollar appreciates against major world currencies, U.S travelers abroad will benefit when they exchange their dollars. On the other hand, any online business trying to entice people to the U.S this summer is likely to see diminished numbers of people booking through the website. This is why, for online travel companies, having underlying data that is reliable enough to ensure exchange rates are always available and accurate is of paramount importance.
Travel websites that execute live currency conversions for redisplay would ingest rates to project on their website or application. These websites often require real-time rates or tick-by-tick data to display rates for customer pricing and conversion purposes. Studies have shown that when pricing for customers in a global market, price localization is such a critical component of e-commerce apps and websites that the companies who fail to price their products in the local currency sell 30% less overall versus companies that did localize their pricing in the local currency. This is all with the end goal of providing a better customer experience by empowering users with accurate data, as well as staying cost-effective.
If these businesses are going to redisplay data for use by their customers, they need to ensure that the data they source is accurate. The most accurate real-time exchange rates are generated by market makers that provide a true reflection of the forex market, rather than market aggregators, who compile data from various unknown sources potentially compromising the integrity of the data. For travel sites, ensuring accurate rate delivery is an integral part of their platform and servicing their customers.
On top of the importance of accuracy, applications need to be supported with state-of-the-art infrastructure and tech support. When outsourcing non-core functionalities or operations, companies need accurate and reliable data that guarantee the same standards that they deliver to customers booking their travel.This is why developers and product managers will be on the lookout for a reliable and secure data feed API that can be integrated easily into their ecosystem. And when all is said and done, it is the family planning their summer getaway that ultimately benefits from businesses providing accurate FX rates, because it ensures that they’re getting competitive pricing and a better overall experience.
The travel industry is, by its nature, an international business. Payments from overseas, involve foreign currencies, which, in the current climate, are fluctuating sharply and unexpectedly through geopolitical events. With this in mind, those travel companies that understand the importance of accurate and timely data in proving the best possible rates to jet setters this summer will be best placed to thrive during one of the most profitable times of the year.