Impact of Currency Exchange on Selecting a Meeting Venue
When conducting business and having meetings abroad, the travel and event planning industries become an international business, exposing event planners and guests to economic uncertainties. Although meeting planners will likely conduct transactions using the U.S. dollar, costs will be based on foreign rates. Additionally, payments from overseas will involve foreign currencies, the values of which can fluctuate sharply or unexpectedly through the currency futures market, making it tricky to track and meet projected profit margins.
The goal of a U.S. meeting planner is to select the most favorable location based the value of the U.S. dollar in the host country. This way, not only does the event’s budget go further, but the guests will benefit when partaking in tourist activities. To gage the dollar rate compared to other currencies, click here.
Depreciation Effects Currency Exchange
If the U.S. dollar falls in value for an appreciable amount of time, travelers outside the country for their vacation or business will have to plan to spend more money in foreign countries. For budget conscientious meeting planners, keeping track of the exchange rate is key to selecting the most cost-effective international meeting location. The goal is to find the best value for your money. When the value of the U.S. dollar is low, it is a good time to host a state-side event to avoid the additional costs of going overseas.
Foreign Exchange Specialists
The topic of currency exchange can seem overwhelming if you don’t conduct international business on a regular basis. You don’t have to be alone in your research. There are foreign exchange specialists currency brokers who can provide you with access to different tools to help with pre-planning your international meetings and events. Additionally, these specialists can help you with a “forward contract” which will lock in a prevailing exchange rate good for up to two years. They can also monitor the exchange rates to settle on a goal exchange rate in the market of your choosing.
Another important factor in making sure you get a good deal when transacting abroad is around the competitiveness of the exchange rates. In the same way that insurance providers differ in terms of competitiveness, the exchange rates offered by some currency providers are more competitive than others – and on settling large outsourcing bills this can make a big difference to the bottom line.
The Key to Maneuvering Through Exchange Rates is Planning
Let’s face it, the value and exchange rates of currencies is always going to fluctuate. The cost of your international meeting will be based on foreign rates. It is important to know how those rates translate into to domestic costs prior to selecting a location. The exchange rate will not only affect your event planning budget, but it will affect the cost for attendees in both travel and expenses.