How EU Holidays boosted profit margins with Airwallex’s financial technology

Director and co-founder Alan Ang launched EU Holidays in 2010. Through their openness to adapting new technology, EU Holidays grew from an initial team of 5 to a robust 150+ employees across 3 subsidiary offices.

This expansion was a clear sign of success, but it also posed new financial challenges, particularly with the cost of international payments. EU Holidays needed an innovative solution that would protect their margins while enabling their expansion.

How did EU Holidays benefit from Airwallex?

1. EU Holidays' profit margins increased by 30 points due to Airwallex’s market-leading FX rates and the Airwallex Global Account, which lets them pay overseas suppliers in their local currency without going through SWIFT.

2. The company also saved 60% of its time on accounting and manual reconciliation by issuing 20 Airwallex multi-currency ‌Corporate Cards to employees, and setting custom spending limits and controls to avoid unnecessary spending.

Challenge 1: escalating costs of international money transfers

Cross-border payments are essential to the travel industry, but high transactions and foreign exchange fees can significantly reduce profit margins if not managed carefully.

As EU Holidays grew, they faced a pressing issue: the increasing costs of global payments. The more tours they offered, the more suppliers and tour operators they had to pay in different local currencies. These payments came with high cross-border and conversion fees that cut into their profits.

Solution: pay like a local with Airwallex’s global transfer network

Unlike traditional banks, Airwallex has a global network of partnerships with local payment rails. Through their Airwallex multi-currency account, EU Holidays can pay overseas suppliers in their local currencies using local payment rails, which helped them avoid SWIFT fees that typically come with cross-border transactions. 

Airwallex’s favourable foreign exchange rates and ability to pay like a local boosted profit margins by an impressive 30 points. No longer burdened by the need to scout for the best rates and grapple with hidden bank charges, the team could redirect their focus to the core aspects of running the business.

Alan Ang

Director and co-founder at EU Holidays

"Airwallex’s global network made sending and receiving international payments easy. We avoid cross-border fees by paying overseas suppliers in their local currency. Sometimes, transfers are even done within the day."

Challenge 2: extended wait times for corporate cards

As the team grew, securing corporate cards for individual employees became increasingly difficult. EU Holidays often waited several weeks to receive bank-issued corporate cards, and the delay forced multiple team members to share a single card. The finance team resorted to manual expense reconciliation and accounting just to understand which individual employee was responsible for each expense. 

Solution: streamlined expenses with Airwallex Corporate Cards

With Airwallex, EU Holidays could instantly issue 20+ multi-currency Corporate Cards for teams and individual employees. Each card is free to issue, and all expenses are tracked on a streamlined expense management system. Managers can easily set spending limits and controls, and get a real-time view of all card activity. 

On top of this, the team saved on fees typically associated with international card payments. The Corporate Cards have no transaction fees and eliminate unnecessary conversion fees by paying expenses directly from their multi-currency account. 

These features streamlined EU Holidays’ accounting process, which allowed the team to focus on core business operations. 

"The Airwallex Corporate Cards are ideal for our overseas tours," shared Alan. "They support over 140 currencies, and we can instantly issue them to our employees, simplifying our accounting processes and saving up to 60% of time."  

Challenge 3: overcoming initial resistance to new technology

Although many EU Holidays employees quickly adapted to Airwallex, some employees resisted the new technology. Employees often prefer familiar systems, even if they are less efficient. Some employees initially felt overwhelmed by the idea of learning a new system, and feared they wouldn't adapt quickly.

Solution: user-friendly features and quality customer support

Fintech solutions may appear complex at first glance, especially to non-digital natives. That’s why Airwallex is designed with ease of use in mind, making the on-boarding process simple and accessible for non-digital natives.

Airwallex also believes in the importance of human relationships and quality customer service. Each business has a dedicated local account manager who supports their transition and onboarding. Furthermore, Airwallex maintains a dedicated on-the-ground team in Singapore, accessible through various communication channels, including email, phone, and WhatsApp. This comprehensive support system ensures that employees have the necessary assistance and troubleshooting capabilities to address issues such as lost transfers effectively.

What’s next for EU Holidays? 

EU Holidays continues to redefine what it means to be a travel agency through its adoption of new technology. Their flagship store at Suntec City Mall just unveiled an indoor ski slope and golf simulator, so travellers can learn the basics before they embark on their adventures. 

Alan Ang

Director and co-founder at EU Holidays

“Our growth story isn’t one of survival – it’s about thinking creatively and using technology to maximise our profits. With Airwallex by our side, we've streamlined operations and increased margins without layoffs or compromising on service quality.”

This publication does not constitute legal, tax, or professional advice from Airwallex, nor does it substitute seeking such advice, and makes no express or implied representations / warranties / guarantees regarding content accuracy, completeness, or currency. If you would like to request an update, feel free to contact us at [[email protected]]. Airwallex (Singapore) Pte. Ltd. (201626561Z) is licensed as a Major Payment Institution and regulated by the Monetary Authority of Singapore.