Despite being one of the countries which has ‘opted out’ , the British travel industry will be one of the first industries to feel the effects of the new European currency.
Adoption of the euro among businesses is going to be faster than many may imagine, as the full benefits of certainty in financial planning and the ability to consolidate cross-border operations are recognised.
If UKagents do not pay due attention to planning and preparation now – particularly in meeting customers’ needs – they risk having to catch up very quickly as the benefits of the euro become increasingly recognised.
There is a strong likelihood that corporations now using or intending to change to euros will expect their travel agencies to handle the new currency.
In addition, they will expect to deal in euros with travel providers – the airlines, hotel groups, car rental companies and others (such as rail).
From the beginning of 1999, Amadeus has upgraded its central reservation system to enable travel providers to publicise prices and sell in euros, while giving agents the option to quote fares in euro and, within the euro area, to make reservations and ticket using the new currency.
Agents can choose whether to operate primarily in euros or the old currencies, such as the franc or deutschemark. They have the option to switch with one key stroke.
While Amadeus and other GDS’s have taken steps necessary to ensure we are up to date with the changing economic climate, other organisations have been slower to adapt.
One area of concern for the industry is that the UKBankSettlement Plan (the payment system between the airlines and agencies) cannot handle transactions in the euro today.
There have been moves to persuade the BSP to use the euro, and we believe industry pressure will increase as travel agents themselves get pressure from corporate customers to be invoiced, and to pay, in the new currency.
Amadeus would fully support this move.
Our vision regarding the euro has been, and will continue to be, a global one.
Every agent using Amadeus has access to pricing in euros, including those in the UK, so fares can be quoted in euros.
Consequently, if agents and their customers can agree on where currency exposure lies, the Amadeus system is ready to give UKagencies the tool they need to work in euros.
The age of the euro has arrived and the British travelindustry risks getting caught out if it does accept it now. As the currency becomes more widely recognised,the industry will have to work hard to meet customers’ needs