Global serviced apartment provider SITU has launched a new service that it says enables customers to lock in long-lead prices on overseas properties, even if the market experiences fluctuations.
The service is provided by foreign exchange and international payments specialist Frontierpay and enables SITU to “eliminate currency risk in its booking process through the use of hedging”, according to a media release. This allows SITU to purchase currency that will be needed in the future at the current rate of exchange, avoiding depreciation should the strength of the pound fall in international markets.
Phil Stapleton, MD of SITU, said this process will allow the company to avoid the risks involved with a fluctuating currency market. “A typical transaction for us could involve a customer in New York deciding in June that they want to book an apartment in Paris in September. We will quote a price in June, but that could be subject to fluctuations in the exchange rate in the interim period. While we’d always look to absorb this cost, there comes a point where that has to be passed on. By working with Frontierpay to lock in the exchange rate in advance, that risk is removed. This means customers are no longer affected by exchange rate fluctuations, guaranteeing that the price they are quoted is the price they get.”