New research from Travelex, the London-based foreign exchange specialist has revealed that travel money worth £2.3bn ($4.6bn) is left unmanaged by British businesses as they fail to centralise their corporate foreign currency.
The latest Travelex International Foreign Exchange Market Monitor (IFXMM) found that business travellers are, in the main, left to their own devices when it comes to purchasing and managing their foreign exchange (FX). Despite more than 27% stating they would prefer their employers to organise their FX, currently only 9% of companies source foreign currency for employees.
Without centralised policies or corporate FX services at their disposal, the research reveals business travellers are making decisions on overseas currency purchases that could cost their employers dearly.
Interestingly the study shows that 76% of British business travellers choose to only take cash when travelling abroad, exposing themselves to the risk of carrying large sums of money.
The findings are in contrast to people”s habits at home where the number of cash transactions is continuing to decline as people become more and more ”plastic” minded.
Travelex head of corporate services, Jonathan Bennett, emphasises the importance of businesses thinking more intelligently about how they manage their FX prior to sending their employees on travels:
”It is surprising how many business people are still travelling with only cash, when there are alternatives like the Corporate Cash Passport available, especially when large amounts are require,” Said Bennett. Both individuals and companies can minimise the risks of carrying cash, reduce exposure to foreign exchange fluctuations and secure better rates if they adopt centralised purchasing.”
”Travelex currently distributes more than ”50m to fund business expenses to corporate customers saving them in total more than ”500,000 each year in rate and efficiency benefits.” Bennett said.
Travelex has used the survey to promote its Corporate Cash Passport (CCP), developed specifically to help businesses manage their FX more effectively. The CCP provides a number of security and pricing benefits including the ability to lock in exchange rates for the currency in which the card is denominated, a replacement card for immediate backup, as well as a 24-hour helpline offering emergency support services.
CCP is currently being used by a number of leading travel industry companies including British Airways, MyTravel and Trafalgar Tours to help reduce and better manage their corporate expenditure.