An exchange rate is the value of one currency in relation to another. In travel payments, it refers to the conversion rate applied when a traveler’s home currency is exchanged into the local currency of the travel merchant.
Exchange rates are critical in cross-border travel payments. When a traveler books services in a foreign currency, the exchange rate determines how much they will ultimately pay. Payment processors and financial institutions often apply their own rates, which may include a markup, making the final price higher than the official exchange rate.
Fluctuating exchange rates can significantly impact the final cost of travel services. Travel merchants must either absorb these costs or pass them on to the customer, potentially making bookings more expensive. Transparency about exchange rate fees is key to maintaining customer trust.
Felloh provides real-time exchange rate management, ensuring transparent and competitive rates for international transactions in the travel industry. Felloh helps businesses offer accurate pricing in multiple currencies, improving customer trust and satisfaction. With Felloh’s solutions, businesses can better manage cross-border payments and provide clear, cost-effective options for international customers.
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