Spend it Wisely
Over half of British workers travel for business every year. Although the typical business traveller will know the airport routine and the company’s preferred destinations like the back of their hand, sometimes it can be difficult to figure out how to truly master the arts of saving your pounds when it comes to currency exchange.
Understandably, last-minute trips happen and may result in no other option than purchasing money at a poor exchange rate like the airport. However, consistently opting for these choices will only burn an unnecessary hole in the company’s budget and leave travellers with less money to spend whilst they’re away.
So, what do you do?
The typical way we used to purchase currency was primarily through TMCs, post office or a travel agency at a fixed rate. “The more you spend the greater the discount” was the typical rule of thumb but thankfully, with the evolution of technology, shopping around for a fair exchange rate, no longer needs to be time-consuming and can be quicker than you think.
Using cash when travelling for business is beneficial to individuals who frequently visit the same destinations, using the same currency. This could fit well with the previous point “the more you spend, the greater the discount” rule as cash would allow corporates to receive a better one-off deal, to share between the business travellers in your company.
Although some TMCs provide exclusive currency deals to their corporates, companies without this privilege may be unsure on where to go and could end up stuck at a poor exchange rate as you may not have the time to shop around.
Travel Money.Max is an excellent service which allows you to price compare exchange rates online for the best rates and provide travellers with a choice of how to receive the cash whether it be delivered to your office, or at the airport. This is a great solution to travellers who want to use cash whilst abroad and still get your money at an exchange rate that is budget friendly.
Although debit cards carry a stigma for unreasonable exchange rates – this should not be mistaken with credit cards. With the right provider, credit cards are a great option for business travellers who are unsure of how much they will spend when abroad.
Tandem and Barclays Platinum credit cards have both reputable reviews for their no fee charge when exchanging currencies. If you are already with Barclays, try upgrading your existing company credit card to platinum for your company to have the privilege of free cash withdrawals or alternatively, at a competitive low-cost fee with Tandem bank.
For business travellers who want to keep an eye on what they spend – prepaid cards such as Revolut are excellent to generate a greater awareness of what you spend.
Offering their services in 24 currencies, corporates will have the option of choosing a business or personal account which entitles you to benefits like low-cost transfers and real-time exchange rates. Use the card how you would usually use a credit or debit card and instantly send and receive money in your Revolut card, with online statements available to keep track of what you spend whilst abroad.
What our team think
Working in the travel sector, it is safe to say we do our fair share of business trips throughout the year.
From networking events in Spain to meetings in South Africa, our Sales and Marketing Manager Tahir Zia is always in and out of the office to liaise with our clients and partners.
When asked on his favourite form of currency exchange, Tahir explains how he will always steer more towards “Revolut or the company credit card” in-order to manage the company budget accordingly and easily track payments without overspending.
Out of preference, using cash for Tahir is his last resort as he finds it can become “easily expensive” with ATM transactions and prefers payments to be directly onto his card for receipts.
Factors to consider
Although these services may be beneficial to corporations most of the time – external factors may come into play which will unavoidably provide travellers with exchange rates lower than expected.
Factors will include topics such as Brexit. For instances such as this, we advise currencies to be taken out for upcoming trips prior to known deadlines, such as the 29th March and use a secure, fixed exchange rate, to prevent the uncertainty of the pound from dropping.
If you enjoyed reading this blog, please give it a like and write in the comments your opinions on how your company deals with currency exchanges and any topics you would like us to cover next.