International – Multi-currency
With Class One Seven Stars is solved
Hoteliers’ Functional problems.
Globalization forces. Let’s talk about two assumptions:
- Countries are highly dependent on dollarization. Our local currency might be: MXN, PEN, COP, ARS, …, now our market, our bookings and our payments are normally made in USD
Our biggest market is British and we would like all bookings and invoices to be in GBP..
With Class One this issue is solved
As we well know, this is a very complex problem in which various factors interact. Usually, these elements are incoherent with each other.
For example, our KPIs mainly focus on our ADR, RevPAR, ARR,…, which consequently must all be in a single monetary value that usually is the native currency where we operate and its internal and tax accounting.
However, our bookings, invoices and payments may be in a different currency, so we found ourselves squaring the circle.
What’s the solution?
- Exchange Value. (interface) API that automatically updates the exchange rates, always having its value up to date.
- Inventories. It must be sent to the OTAs, Booking Engine, GDS, TTOO, the inventories (Rates), in the currency that these OTAs handle and that best suits the hotel/chain.
- Bookings. It affects us in the “forecast” studies, for this reason we will always have the valuation at the current exchange rate, for our internal studies, and maintaining the amount in the currency of the reservation at all times.
- Stays. Internal production is carried out each day at the exchange rate of that day, but maintaining the amount in the currency of the reservation at all times..
- Billing. It will be done in the original currency of the reservation, and for internal purposes it will be matched by readjusting with the productions carried out so that the exchange values of the productions are correct (there will be a “service” that will bear this loss or currency differences), although the billing will be made in the currency of the reservation. At this point, two options should be considered:
- The Hotel has our accounting system, or another system that is pure multi-currency, in this case they are readjusted so that the clients have USD in USD (not the exchange rate).
- When they do not have multi-currency posting, it will be converted to the local currency.
- Cashing. If the payment is made in the original currency, and our system allows for accounts in foreign currency, it will be charged in the foreign currency, making the necessary readjustments in our production as mentioned above, in the case of those financial systems that do not support multi-currency, a currency exchange will be made with the consequent allocation of exchange differences, if any.