Business travel and hidden costs
The company analysed millions of transactions across 14 different currencies, finding an average fluctuation of seven per cent in the value of the pound throughout all other currencies. The Ukrainian Hryvnia was found to be the most volatile, with a 10% fluctuation, while the Singapore Dollar was the most stable, with a fluctuation of just two per cent. business travel costs
The most expensive destinations for business travel, meanwhile, in terms of average transaction cost, were Dubai (£474), Catania (£350) and Abu Dhabi (£313).
“It’s hard to predict currency fluctuations, especially in today’s volatile economic and political climate,” said Rupert Lee-Browne, CEO of Caxton FX. “However, it’s still important to analyse their impact on business travel costs. When you apply the average currency variation across major currencies of seven per cent, it may seem like a small addition to the average cost of a business trip. Consider how many UK businessmen and women take multiple trips throughout the year, however, and this quickly translates into a significant amount of money.”
Companies, Lee-Browne went on to say, need to keep on top of hidden costs, especially as international business travel is now very much the norm: “Currency fluctuations can turn what appears on paper a low-cost trip into an expensive one very quickly. Companies need to plan ahead and work with experts to help them manage these costs. Our research demonstrates the savings to be made with the right risk management systems in place.”
