This Article is About
vacation rentals
different currency
vacation rental property
ebay
Vacation Rentals And The Value Of Currency
Join 1000's of Authors at StreetArticles Today!

Vacation Rentals And the Value Of Currency

Consumers that book vacation rental property do so from all over the world. Whilst many will stay in properties in their own country, many will venture overseas. In 2011 according to European Commission’s Directorate-General for Enterprise and Industry Over 250 million people living in the European Union made international holiday trips. Over half (51.2%) of the 2263 million nights spent abroad in 2011 were done so by British and German travellers.

Large numbers of people travel and all need to stay somewhere. Britains use the British Pound and Germans the Euro. Any British traveller outside of the United Kingdom must use a different currency. Any German outside of the EU area must use a different currency. This issue is no different for an American visiting Canada, a Brazilian in Chile, or a Frenchman in Turkey.

It is not difficult to work out a price in a different currency. Anyone can visit currency websites like xecom and get up to the minute currency rates. That does not mean you should assume that everyone will do this. People are on the whole lazy when it comes to working things out and for many, international travel whilst enjoyable can also be very confusing.

Over the years I have sold many items on ebay. There have only been three problems. Sometimes people will not pay for what they have bought, some people try to commit fraud and others do not understand currency. The last group think they know what they are paying until the end of an acution and the “dust settles”. Then they see the final bill in their currency. It is only then that they realise how much they are committed to paying. These are not stupid people, they just did not think fully about currency rate differences.

Many people find money not “their own” confusing and easily make mistakes or incorrect assumptions. All of which suggests that you must quote your prices in the currencies of your potential clients. In Europe that means at least three, the Euro, the Pound and the US Dollar. You should also consider the Swiss Franc. In the USA think about the Canadian Dollar, the Euro and South American currencies. In Asia think about China, Australia, New Zealand and Japan. Globally you should always support USD and EUR.

Over the years many clients have used currencies to generate additional business. I have been around long enough to see the transition from pre-printed brochures with prices which applied for a season to dynamic channel managers which change rates by the second. When brochures were used with pre-calculated rates they were generally in one currency. However, as travel became easier and travellers became more skilful travel businesses would try to offer rates in multiple currencies in brochures. This was theoretically good as potential travellers could easily understand the cost. However, as a business they needed to “manage” currency as rates change. According to the European Central Bank in the five months from March to August 2012 the Euro to Pound rate varied between 0.778 and 0.848. That is almost 9%. That could be a huge dent in profits or a massive boost depending on timing.

It is not a good idea to pre-print rates and “stick to them” unless you know what will happen with currency rates and nobody does. The easiest method for everyone is to quote in alternatives rates at the time of booking but always price the booking using “your currency”. All payments are then converted using the rate that applies at the time of the payment. This protects you the property owner and gives clarity to the guest paying. If the guests “currency” gets stronger then they pay less but you still get what you asked for. If the opposite happens then you get the same and the guest loses out. Whilst potentially bad news for the guest this will usually only happen after they are fully committed to the booking and most likely paid their deposit.

Using currency during the quote and reservation process will not only increase bookings but also reduce problems as there will be clarity for the guest. Just make sure that your terms and conditions make it clear that the booking is “priced” in your base currency and that all payments are converted at the point of payment. Depending on the methods you use for taking payment you may also be able to squeeze a little bit extra on your margin by tweaking the exchange rate you offer. That usually depends on the technology you use and “who” determines the exchange rate.

Embrace different currencies and your vacation rental property will become a bit more attractive than your competitors who do not.


Street Talk

No comments present
You May Also Like
Vacation Rentals And The Rrights And Wrongs Of Photographs
Photographs of your property are critical in today’s competitive world of vacation rentals. Anyone looking at your property online will most likely see it in a list next to others. Your photograph at this point can be critical as to whether someone looks further or not. You do not need…
By:  in  Travel and Leisure  >  Vacation Rentals   Dec 22, 2012  
0
  Likes: 0

Vacation Rentals, the Importance Of Language
This may seem obvious but the vacation rental travel/accommodation business is global, we all do it, all over the world. However, the majority of the worlds accommodation providers insist on “doing it” just for those in certain groups - usually their own language and maybe one other, typically English.According to…
By:  in  Travel and Leisure  >  Vacation Rentals   Dec 28, 2012  
0
  Likes: 0

How to Make Your First Forex Trade
Every industry has its own challenges and this is why it takes sometime before one gains the necessary skills and knowledge to make it in a particular industry. Forex trade is a market that has been growing tremendously and has proved to be a reliable source of income. As a…
By: lee8 in  Investing  >  Stocks   Dec 08, 2015  
0
  Likes: 2

Kickoff Summer Fun With A Party Bus In Northern Va
Summer approaches, and with it, party season. Warm weather inspires thoughts of fruity drinks, skimpy clothes, and a party atmosphere. If you’re planning a beginning of the season extravaganza, a Party Bus in Northern, VA offers a great deal of features perfect for a fun party. If you’ve never experienced…
By: zee1 in  Travel and Leisure  >  Vacation Rentals   Jun 02, 2016  
0
  Likes: 0

How to Choose A Desired Rental for An Unforgettable Stay In Brazil?
It has become a trend amongst nomads, to pick holiday rentals for cheap rates rather than opting to stay in expensive hotel rooms. Because, rentals nowadays, are more affordable and comfortable for the better service quality’s sake. What could be a healthier option for your family’s enjoyment than a personal…
By: Pankaj Sharma in  Travel and Leisure  >  Vacation Rentals   Apr 15, 2016  
0
  Likes: 0

Contact Nature on Your Next Vacation!
When we consider get-away spots these days, it's basic to consider things such as present day inns with all the best housing and extravagances, an extensive swimming pool, promptly accessible Internet access, and obviously, a great area near a major city where you can invest some energy shopping and meandering…
By: Zeeshan Ahmad in  Travel and Leisure  >  Vacation Rentals   Mar 18, 2016  
0
  Likes: 0

Private Villa With Pool Lanzarote – Venue for A Memorable Stay
To live in a villa that offers self catering option is always wise to choose if you are going for an extended vacation. Especially if the place is as exotic as Lanzarote, staying in a villa will give you the optimum pleasure of living in a hospitable privacy and a…
By: Sheraton Veranda in  Travel and Leisure  >  Vacation Rentals   Feb 29, 2016  
0
  Likes: 0

Trip to Continental Croatia
A perfect combination of untouched nature, great fun, amazing adventures and interesting trips, is a great opportunity to get know the inland of Croatia, in a just few steps. Continental Croatia abounds with amazing things from nature till local food and people who will take care that your staying in…
By: Marija3 in  Travel and Leisure  >  Vacation Rentals   Feb 23, 2016  
0
  Likes: 0

Luxury Coach Hire Essex - Types Of Vehicles In One Fleet
Whether you want a tour coach to take you for long distance trips or just an elegant mini coach for a single day ceremony, there are several providers in Essex and Royston. Any luxury coach hire Essex business that has a large fleet is a good choice. Just take the…
By: Sheraton Veranda in  Travel and Leisure  >  Vacation Rentals   Feb 15, 2016  
0
  Likes: 0

Birthday Party Limousine Los Angels
Birthday is a day which comes in your life once in a year. If you have born on 29th February, then you will have to wait for four year to celebrate your birthday, because you have born on a leap year. Leap year has 366 days. All the other years…
By: Ron Prince1 in  Travel and Leisure  >  Vacation Rentals   Oct 14, 2014  
0
  Likes: 0

Birthday Party Limousine Los Angels
Birthday is a day which comes in your life once in a year. If you have born on 29th February, then you will have to wait for four year to celebrate your birthday, because you have born on a leap year. Leap year has 366 days. All the other years…
By: Ron Prince1 in  Travel and Leisure  >  Vacation Rentals   Oct 14, 2014  
0
  Likes: 0

Birthday Party Limousine Los Angels
Birthday is a day which comes in your life once in a year. If you have born on 29th February, then you will have to wait for four year to celebrate your birthday, because you have born on a leap year. Leap year has 366 days. All the other years…
By: Ron Prince1 in  Travel and Leisure  >  Vacation Rentals   Oct 14, 2014  
0
  Likes: 0

Dehradun to Muradabad Taxi,dehradun to Dharamshala Taxi, Dehradun to Dharamshala Cab
Taxi service in Dehradun Provide Taxi Cab Service on the routes of Dehradun to Muradabad, Dehradun to Faridabad Taxi, Dehradun to Gurgaon Taxi. We have an excellent cabs fleet on our panel. A wide option of vehicles is available i.e. Tata Indica, Maruti Dzire, Toyota Innova, Maruti Ritz, Maruti Ertiga,…
By: taxi service in dehradun in  Travel and Leisure  >  Vacation Rentals   Jan 21, 2016  
0
  Likes: 0

Cab In Dehradun, Taxi Booking Service In Dehradun, Taxi Hire Dehradun
Welcome to Taxi service in Dehradun service. Here Taxi service in Dehradun offer you Taxi from Dehradun to Outstation. We are cheap and reliable Taxi service in Dehradun. We have many fully pleased clients. Full day taxi booking. Routes information and online booking help. Taxi service in Dehraduna Reliable Outstaion…
By: taxi service in dehradun in  Travel and Leisure  >  Vacation Rentals   Jan 21, 2016  
0
  Likes: 0

Taxi In Dehradun,
Taxi Service in Dehradun, one of the leading taxi rental providers in Dehradun, offers you excellent chauffeur driven taxi booking with budget cost, huge service and new vehicle for business, company and free time. We have one of the most modern, clean and a well-maintained affordable service to you. We…
By: taxi service in dehradun in  Travel and Leisure  >  Vacation Rentals   Jan 21, 2016  
0
  Likes: 0

Article Views: 1737    Report this Article