Summary:
Our single currency module consolidated air ticket sales and revenue from different countries into the head office reporting currency for a diverse multinational agency group.
The Problem:
Greg the CFO of a Travel Agency group was based out of their headquarters in a major European city. They had operations across many EU countries as well as in the US and some countries in Asia. The business was also in the process of buying other travel companies which added to their rapid
growth. Even though Greg had rolled out a single accounting system and their operational team were integrating all ticketing solutions into one there was still an ongoing challenge about receiving data in time from various locations and consolidating into a single view using EUR as the reporting
currency. They needED to present consolidated information from all their business units each month to the management team and also submit it to the board.
The Solution:
Greg introduced Airline Metrics to their travel group and rolled out the solution across all business units for all countries within weeks. Since Airline Metrics could also process historic IATA and ARC data, this was a huge value add to build in baseline information to compare previous years and current year performance. The one big pain point it also addressed for him was that all airline sales and revenue data was consolidated into EUR from not just a reporting point of view but also down to a single transaction level.
The Result:
It removed multiple handling and data processing work within the finance team and they also did not need to use any “artificial” monthly exchange rate for conversion. The tickets issued were converted to EUR linked to the date of issue and the same rate was used for proration of coupons for forward revenue projections. Another benefit was the ability of the Air Contracting team to monitor regional and global agreements using a single currency and drive airlines to setup contracts in EUR for these type of agreements. All this aligned to the business requirements of single currency
reporting at head office level and also allowed them to save a massive amount of time and resources in reprocessing data.
