The one-currency era is evolving. Here’s what’s next for global travel brands.

For the guest, every detail of an Amalfi escape is designed to feel effortless: the cliffside suite, the family-run vineyard, the captain waiting at the harbor. It all comes together seamlessly. 

Yet for the US-based operator selling these trips in US dollars (USD), the effort isn’t always seamless, especially when dealing with multiple currencies. Local partners, from hoteliers to guides, want euros, which means each conversion chips away at margins. Worse, when the dollar strengthens, suppliers hike prices to protect their profits, leaving the operator squeezed from both sides.

The squeeze isn’t new. It’s the byproduct of an industry built on a single currency. For decades, travel companies have centralized their cash in USD to simplify pricing and reporting, even as their payouts and partnerships have expanded globally. According to our latest report, The state of borderless finance, 92% of North American travel companies on our platform still hold primarily in USD. That isn’t inherently bad: USD’s role as a dominant invoicing and reserve currency makes it a practical anchor.

But the industry is changing. As suppliers and travelers become more global, that single-currency setup starts to show its limits. The friction comes into play when a USD-only setup encounters meaningful non-USD payouts – to hotels, guides, and local partners – and there’s no multi-currency infrastructure. Without the proper solution, operators must make frequent conversions, which adds foreign exchange (FX) drag, delays, and reconciliation headaches. 

These dynamics are most evident in US-based travel platforms serving global travelers and working with international supplier networks.

Why travel is still stuck in the one-currency trap

Many travel brands remain caught in what economist John Maynard Keynes might call “the difficulty of escaping old ideas.” Even as global operations expand, much of the industry still runs on USD-only treasury models – a structure that made sense in a USD-centric era but strains under today’s volume of international payouts and supplier contracts.

The inertia stems from several forces, including:

• Outdated systems. Many travel firms still run on legacy treasury and booking platforms designed for a simpler, USD-centric model. These systems worked when itineraries were point-to-point, and vendor networks were small. But today’s trips involve dozens of international partners, and older platforms can’t easily handle multi-currency wallets or real-time FX hedging.

• Entity requirements for local banking. Many travel agencies still assume they need to establish a full local entity to open a bank account in a new currency. But entity setup is expensive, slow, and adds ongoing compliance overhead. Few realize they can bypass all of that entirely using multi-currency accounts that provide local functionality without local incorporation.

• Centralized cash control. To maintain consistent reporting, finance leadership often mandates that USD payouts be made from a single headquarters. That simplicity may work in other sectors, but in travel, it leaves local teams unable to hold or spend the currencies they actually need.

• Fragmented suppliers. Travel vendors span everything from global hotel chains to seasonal, family-run operators. Renegotiating contracts to accommodate non-USD payments can be a slow and complex process, both legally and financially. It’s no surprise that many leaders hesitate to overhaul systems that “work,” albeit imperfectly.

Clinging to one currency isn’t carelessness; it’s caution. However, that caution can expose travel operators to hidden, growing costs.

The hidden costs of one-currency accounts

For the Amalfi Coast tour operator and travel brands like it – still managing cash through traditional, USD-only accounts without local options – the challenge isn’t attracting travelers, but navigating the friction behind the scenes. 

Lost conversions. Many operators try to avoid FX complexity by pricing everything in USD. But that shortcut carries a real cost: international travelers expect to browse and pay in their own currency and with their preferred local payment methods. Without that flexibility, conversion drops. Pricing only in USD might feel simpler operationally, but it often erodes demand from non-US customers before they ever reach checkout.

Vendor payouts. Travel firms depend on thousands of local suppliers – hotels, drivers, guides – who expect to be paid in their own currencies. Each conversion creates delays and fees. According to a survey by Airwallex and Skift, nearly two-thirds of travel finance executives (66%) stated that outdated or complicated payment systems directly impact profit margins. Nine in ten reported at least a 2% erosion, and more than a third saw losses of 10% or more. For an operator moving millions in bookings, that can erase entire profit margins.

Expansion friction. The costs rise even higher when US travel brands expand into new markets. As an operator branches into Asia-Pacific, for example, where packages span currencies from AUD and SGD to JPY, CNY, and INR, FX spreads can run 1–3% above interbank rates, compared to <1% for USD/EUR. Local regulations add another layer – China’s capital controls, India’s remittance rules, Indonesia’s rupiah settlement requirements. Without local-currency holdings, costs accumulate quickly, making scale more challenging to achieve.

The turnaround doesn’t require ripping out legacy systems overnight. For many operators, it begins with a new partnership – with fast-growing fintech firms that understand the challenges of travel and can simplify how money moves across borders. 

From global trends to practical steps for travel operators

What’s changing globally?

Airwallex data shows that USD balances among North American businesses have fallen from 90% in early 2023 to 75% by Q1 2025, while growth has occurred in EUR, GBP, CNY, and AUD – evidence of broader liquidity diversification as companies scale across borders. PwC likewise notes treasuries are prioritizing real-time liquidity and AI-driven forecasting to stay competitive amid volatility and tighter capital.

What does this mean for travel operators?

For US-based travel platforms, this shift shows up in very practical ways. Most still anchor in USD for pricing and reporting, but now pair that stability with multi-currency flexibility:

• Pricing and margin discipline: Quote in USD if you prefer, but price inputs in the source currency and use transactional FX to lock in costs; this reduces the likelihood of surprise squeezes when rates fluctuate.

• Multi-currency pricing without FX risk: Use Airwallex’s automatic currency conversion (ACC) capabilities to price directly in local currencies while settling in USD. This lets you offer local pricing with no conversion risk or margin erosion.

• Supplier payouts: Default to like-for-like settlement so hotels/guides are paid in local currency; reserve low-cost FX for the gaps – fewer conversions, faster reconciliations.

• Treasury policy: Keep USD as the reporting anchor, but set currency “match rules” (hold/convert/spend) by market, so cash doesn’t fragment while payables clear locally.

• Refund and disruption ops: Pre-fund or rule-based sweep to high-refund currencies to shorten refund SLAs and reduce FX drift during spikes.

• Working capital and forecasting: Move to intra-day visibility across wallets and use forecasting to time conversions around cash needs, not month-end rituals.

What does a modern setup look like?

For travel brands, treasury modernization doesn’t mean replacing what works, but re-engineering how money moves. It’s not about abandoning the dollar; it’s abandoning unnecessary conversions. 

Keep USD for reporting and control, then add local currency accounts (EUR, GBP, etc.) where you operate. Pay suppliers and issue refunds from matching wallets, reducing the number of FX transactions. The result is steadier margins, quicker reconciliation, and stronger supplier relationships, without changing how you price or report.

The most successful operators are transitioning from USD-only models to USD-anchored systems that seamlessly move between currencies. As global business travel spend climbs toward $1.64T in 2025, operators with this foundation in place will move faster, negotiate better, and deliver smoother experiences for both travelers and partners.

Lessons from early adopters

Today, the shift away from single-currency systems doesn’t require an overhaul. For early adopters, including travel operators using Airwallex, the transition has been fast, frictionless, and profitable. Setting up a multi-currency account can be done in minutes, with no opening fees, monthly charges, or minimum balances.

For early adopters, the payoff is fast and substantial:

• Reduced FX risk. EU Holidays boosted profit margins by 30 points after switching to Airwallex local payout rails that let them pay suppliers directly in local currency – meaning no SWIFT transfers and no surprise FX spreads.

• Faster, leaner operations. Authentic Vacations cut $10,000 in monthly FX costs, saved 3% per card transaction, and reduced transfer times from 2–5 days to just a few hours.

• Expanded product offerings. For Tour Amigo, easier payouts opened entirely new markets. “Now I can pay Japanese suppliers directly,” says CMO Toby Hughes. “That means new itineraries, new customers, and new experiences for travelers.”

• Strengthened supplier trust. As Adam Towers of US Bank notes: “Suppliers will consider [being paid in their local currency] a huge benefit. They know exactly how much they’ll be paid for each transaction, they’re no longer managing the FX risk, and they can price their products more competitively.”

If the one-currency trap has been a brake on growth, the next chapter will be about acceleration. 

Charting the path forward

Treasury modernization doesn’t have to be an overhaul. Momentum starts with pragmatic steps that reduce friction and restore control.

• Multi-currency accounts. Instead of converting every dollar, operators can hold and spend in the currencies they already use – protecting margins and reducing delays. 

• Transactional FX. Locking in exchange rates when pricing itineraries in local currency shields operators from sudden swings that can wipe out profits.

• Global payments. Modern rails – whether no-code checkouts, mobile integrations, or API-based invoicing – make it seamless to pay suppliers or refund travelers anywhere in the world.

The impact is exponential when these tools connect. According to The state of borderless finance report, clients using three integrated treasury products processed 10 times more volume per quarter than those relying on a single tool. Efficiency compounds when finance catches up with the pace of travel.

Modernize your treasury with Airwallex

For travel brands, the one-currency trap has long been perceived as the “safe” choice. In reality, it can erode margins and slow growth at a time when opportunities are expanding.

With modern treasury tools, refunds are cleared in hours, suppliers are paid in their own currencies, and expansion into new markets feels less like a gamble and more like a given.

Airwallex isn’t just helping operators adapt, it’s shaping the future of global banking. A future where borders don’t slow business, where cash moves as freely as travelers, and where treasury becomes a catalyst rather than a constraint.

That future is already here, and travel has everything to gain by stepping into it. Explore more in The state of borderless finance or open a multi-currency account with Airwallex today.