Travel Money – market update from Nick Boden, Product Director

Travel Money – market update from Nick Boden, Product Director

Further to our last update, we hear about the latest on the Travel Money market from Nick Boden, Product Director:

A review of our June on demand Travel Money sales saw an average weekly turnover achievement of around 10% of last year’s sales.

We believe this to be representative of the current market as many of our competitors remained closed. This level of sales means a significant number of our branches that have had their HMRC registrations temporarily paused would continue to remain unprofitable when this level of sales is considered against the HMRC licence fees alone.

The good news is we will be restoring the travel money HMRC branch registrations for around 850 of the branches that were temporarily suspended, and they’ll be able to sell the on demand and pre-order services again from Friday 10 July. We have told the branches this week.

We are still optimistic about the future market, but we slo have to understand that the travel behaviours of our customers may be changing. We are continuing to evaluate the broader travel industry news and in particular European country specifics such as Spain, France, Italy and Greece, as well as further government travel announcements on the likes of quarantine restrictions and FCO non-essential travel guidelines, to help us understand how the travel market may be returning in the UK.

We appreciate that this outcome may be disappointing for the remaining branches that have had their registration paused, so we wanted to assure you that we are continuing to review the travel market on a weekly basis to capture ongoing trends and performance to support future outcomes. Our next decision point is likely to be when we achieve around 30% of last year’s turnover, alongside the travel market and government announcements – so we have a way to go yet. Thank you for your continued patience and understanding.