Hedge your bets with roomsXML
The Australian Dollar has had another roller coaster year, starting at 0.75 USD, dropping in May to 0.73 and recently, against all odds and predictions, rising again to 0.80 in January 2018
Many global hotel contracts are ultimately reflected by exchange rates against the US dollar, meaning compared to May, Aussie travellers are getting nearly 10% more bang for their buck.
But with the US economy showing growing signs of recovery, it’s not impossible agents may see that slip; if purchasing on variable rates and exchange drop back to the May figures, agents could see their commissions wiped out.
roomsXML fixes rates to the Australian dollar value at the time of the booking. Mark Luckey, MD RoomsXML Pacific says “roomsXML supports travel agents. We honour the Australian dollar rates as committed at the time of the booking. You pay what the invoice says. It can’t go up.
“Rapid changes in currencies can hurt a bottom line; but being a global company, our long-term strategy plans for volatility on exchange markets. We’ve seen $1.10 become 0.95 in a matter of months. History has a knack of repeating itself. We think a long term, guaranteed profit margin is better than gambling with companies who vary rates
Luckey worries about a sale price which can fluctuate up weekly, but never seems to go down quite as much as an favourable improvement in rates. “It’s Russian roulette for an agent, based on conditions they can’t control, if they commit to a sale price with a customer on a variable cost rate that could wipe out their margins”
“roomsXML is nothing with agents, so they are front of mind in everything we do. We look forward to an exciting 2018.”.