New research from Travelex has revealed that travel money worth £2.3bn¹ is left unmanaged by British businesses as they fail to centralise their corporate foreign currency.

The latest Travelex International Foreign Exchange Market Monitor² (IFXMM), found that British business travellers are, in the main, left to their own devices when it comes to purchasing and managing their foreign exchange (FX). Despite over 27 per cent of business travellers stating they would prefer their employers to organise their FX, currently only nine per cent of companies source foreign currency for employees. And without centralised policies or corporate FX services at their disposal, the research reveals business travellers are making decisions on their FX purchases that could cost their employers dearly.

The research showed 76 per cent of British business travellers choose to only take cash when travelling abroad, exposing themselves to the risk of carrying large sums of cash. The findings are in contrast to people’s habits at home where the number of cash transactions is continuing to decline.³

The research also found that the average business trip lasts 8 nights⁴ incurring significant costs. The alternative to solely taking cash is for companies to offer a mixed wallet to staff; cash for incidentals, or remote locations, and a prepaid currency card for the major trip allowance. Managing both these FX purchases centrally enables companies to benefit from more efficient financial control and preferential rates due to fewer payments in commission.

Jonathan Bennett, Head of Corporate at Travelex, 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 required. Both individuals and companies can minimise the risks of carrying cash, reduce exposure to foreign exchange fluctuations and get better rates if they adopt centralised purchasing. Travelex currently distributes over £50 million to fund business expenses to corporate customers saving them in total more than £500,000 each year in rate and efficiency benefits.”

Travelex offers businesses corporate customers a range of FX solutions including competitive pricing, clear charging structures and the capability to purchase and manage their FX online.

Travelex has also developed Corporate Cash Passport (CCP)⁵ 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.

Travelex Corporate Cash Passport is currently being used by leading companies such as British Airways, MyTravel and Trafalgar Tours to help reduce and better manage their corporate expenditure. For further information visit www.cashpassport.com

¹ Based on 91% of annual UK pre-trip business travel FX market. Source: International Foreign Exchange Market Monitor 2007
² Conducted by independent research company Alternative Futures Research Limited
³ Annual APACS figures 2006
⁴ This figure is the mathematical mean, however the impact of 6% of very long trips mean the median average is around 6 nights.
⁵ www.cashpassport.com

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For more information please contact Laura Zobel, Lousie Ellis or Zoe Hatton at Lawton. 02380 838 500, laura.zobel@lawton.co.uk; louise.ellis@lawton.co.uk or zoe.hatton@lawton.co.uk

About Travelex:

Travelex is the world’s largest foreign exchange specialist. Since its formation, Travelex has evolved from being an innovative bureau de change operator into a dynamic, pioneering and diversified worldwide money business. Its wide variety of consumer and business services, together with its rapid growth and unique entrepreneurial culture, have provided the platform for the emergence of Travelex today as the world-leading company in its field.

Travelex is also the world’s largest provider of outsourced travel money and related fulfilment services for banks, financial institutions and travel agencies. Through its world-leading automation Travelex is able to process over three million orders annually. Travelex offers customers a full range of delivery channel options including telephone and web-based ordering.

www.travelex.com | www.cashpassport.com

Note to Editors:

• The Travelex International Foreign Exchange Market Monitor 2007 was conducted in February 2007 by Alternative Futures Research Limited. A total of 2,774 online interviews were undertaken in 11 countries worldwide (Australia, Belgium, France, Germany, Japan, Mainland China, Netherlands, New Zealand, UK, USA and Russia). 1,172 of these interviews related to business trips.
• The UK is the largest global FX market with business spend of $5.5 billion each year (£2.5 billion) set to grow around 41 per cent, based on overall UK FX market growth potential over the next five years.⁶

⁶ Alternative Futures Research estimates based on IFXMM data