Pura Aventura and Brexit
As an Anglo-Spanish company it will probably come as no surprise to any of you that we are genetically pre-disposed to the EU. The freedom and flexibility of movement has allowed us to construct a dynamic pan-European business.
Given the recent turmoil on markets, notably the unprecedented drop in the value of sterling, I think it’s probably appropriate to explain to our clients, prospective clients and anyone else interested enough to read this that Pura Aventura finds itself in a thankfully stable position in the midst of the uncertainty.
We are remarkably well positioned to weather this period of instability and uncertainty for two main reasons. Firstly, about 35% of our business is in creating and delivering trips in Spain on behalf of other tour operators. They pay us in Euros and we pay services in Euros, the only currency transaction taking place is when we repatriate any profits back into Sterling so we benefit from a weaker pound. We have smaller but similar operations in Latin America (notably Peru and Chile) from which we earn US dollars.
Secondly, for trips to Latin America we have, for the past year or more, forward bought the currencies we need (mainly USD) for services pertaining to that particular tour. This means that the tour will cost us, and therefore our clients, exactly what we said it would cost when it was booked.
For any new bookings to Latin America, we offer the same certainty though any new quotes are done using the best available rate at the moment.
Which is all to say that we as a company find ourselves in a robust and stable position in the midst of uncertain times thanks to some forward planning/dumb luck on our fx strategy.
I can’t, in good conscience, use this as some clarion call to rush out and book a holiday with us but I would like to say that you don’t have to change plans on our behalf. If you wanted to go away before the referendum, you can still do so safe in the knowledge that we as a company are not going anywhere.
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The Pothole is Pura Aventura's popular monthly email. We share what we love, what interests us and what we find challenging. And we don't Photoshop out the bits everyone else does. We like to think our considered opinions provide food for thought, and will sometimes put a smile on your face. They've even been known to make people cry. You can click here to subscribe and, naturally, unsubscribe at any time.
The Pothole is Pura Aventura's popular monthly email. We share what we love, what interests us and what we find challenging. And we don't Photoshop out the bits everyone else does. We like to think our considered opinions provide food for thought, and will sometimes put a smile on your face. They've even been known to make people cry. You can click here to subscribe and, naturally, unsubscribe at any time.
