Europe operators press for currency agreement in contracts

SOME European tour operators are requesting groundhandlers to sign a currency agreement in the contract. Many inbound agents interviewed are dismissing the request. One is considering it, and another, Happy Trails Indonesia and Malaysia, has agreed. Happy Trails managing director Gerald van Amerongen said that as of now, he had included a currency agreement in contracts with 10 out of 30 partners in the UK, the Netherlands, Germany and Canada.

Based on contract rates, the agreement will see both parties administering the gains and losses from currency exchange fluctuations throughout the year. At the end of the year, the losses and gains will be shared equally by both parties. "This has never happened before, as it was not necessary," said van Amerongen. But as Asian currencies gain strength against the euro and the UK pound, more European operators are asking for the agreement.

Asian Trails said it had received similar requests from partners but managing director Jacques Guichandut said Asian Trails would not accede. "Currency exchanges have been up and down for many years. If you win, you win, and if you lose, you lose. It's part of the game," he said.
-TTG Asia.