As international travel markets closed amid the pandemic, airport traffic was not the only heavily hit sector. Lower passenger volumes also slashed demand for on-the-ground foreign exchange services. And one of the biggest global casualties of the FX market was Travelex – the troubled UK-born brand formerly 51 percent owned by disgraced billionaire BR Shetty.
After falling into insolvency in August 2020 following fraud claims and an infamous ransomware attack, the global FX company is now embarking on an ambitious comeback, says Batu Dolay, managing director of Travelex Middle East and Turkey.
The company, which still operates 950 ATMs and 1,100 stores globally, successfully completed a major restructure of the business in August 2020 and received a cash boost of $84 million under new major shareholders including Barings LLC and Vector Capital Management.
Regional brand damage?
“Travelex was always seen as a self-sufficient British brand that has managed to be self-sufficient from a legal and financial perspective. Thankfully we have strong partners and good relations with key airports in the region, which help to limit brand damage in the Middle East region,” says Dolay.
The managing director says regional travel recovery is happening at a faster rate than in the west, adding that 2021 Travelex revenues will outperform pre-pandemic levels.
The company is using major events, such as Expo 2020 Dubai and the Qatar FIFA World Cup, to springboard its expansion in the region.
“Considering all these event developments, we thought it was the right time to invest into the business and expand in the regional airports,” says Dolay.
Having opened two new stores in Qatar earlier this year, Travelex is now working to expand its portfolio across Bahrain, Dubai, Sharjah and Abu Dhabi.
Batu Dolay, managing director of Travelex Middle East and Turkey.
Changing customer demands
In addition to establishing more airport stores, the nature of these will also be changing, with more mobile and “on the move” stores being introduced to address new digital possibilities and changing customer demands.
Travelex customers will be able to make use of mobile Travelex ATMs at airports and prepaid digital cards, says Dolay.
While general usage of cash is on the downturn globally, tourists still have a preference for cash when travelling.
“It’s no secret that cash usage is on the wane, and the pandemic accelerated that all around the world. However, that trend is more aligned to domestic spending. When overseas, tourists still use cash because international banks are still charging ridiculously high fees for their transactions,” he says.
Travelex operates 950 ATMs and 1,100 stores globally.
Dolay adds that Middle East travellers in particular feel more “secure” when using cash to pay for small purchases, such as coffees, taxis or tips.
He says: “For example, tips mean a lot in the Middle East. You can’t use Apply Pay to tip the bell boy or the porter.”
Dolay predicts the trend towards using cash on holidays will endure in the Middle East and Asia, while declining in the west.
“We are proving this through numbers,” he says. “Travelex was able to outperform passengers’ numbers with transaction numbers in this part of the world.”
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