Package holiday provider builds robust hedging strategy

Emerging from the cinders of the COVID-19 pandemic, the travel industry is now contending with volatile currency markets and ridged credit terms. Learn how one of Argentex’s clients, a leading UK-based holiday package provider, has managed extended client payment terms with a bespoke hedging strategy. 

Problem: Sustaining profit margins  

As the travel industry continues to recover post pandemic, many travel businesses are struggling to access credit while navigating significant FX movements that are squeezing their profit margins. Holiday package providers operate in a complex ecosystem of vendor and third-party deliverables, from airlines through to hotels and tour operators. Each part of this value chain is included in the price of a package holiday and, as such, the travel package provider is responsible for ensuring payment terms for these third parties are met in a timely fashion and in the correct currency.   

Argentex Group plc (LON:AGFX) is a leading provider of bespoke currency risk management and payments solutions for businesses and financial institutions

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