{"id":1442,"date":"2021-07-13T15:54:09","date_gmt":"2021-07-13T14:54:09","guid":{"rendered":"https:\/\/mydailybells.com.ng\/businessbells\/?p=1442"},"modified":"2021-07-13T15:54:09","modified_gmt":"2021-07-13T14:54:09","slug":"international-travel-tickets-to-rise-as-travel-agencies-devalue-exchange-rate","status":"publish","type":"post","link":"https:\/\/mydailybells.com.ng\/businessbells\/international-travel-tickets-to-rise-as-travel-agencies-devalue-exchange-rate\/","title":{"rendered":"International Travel Tickets To Rise As Travel Agencies Devalue Exchange Rate"},"content":{"rendered":"<h4><\/h4>\n<h4><strong><span style=\"font-size: 18pt;\">International travel tickets in Nigeria are on track to rise following a directive to travel agencies to adjust exchange rates from N420.86 to N460, effectively an 8.5% devaluation.<\/span><\/strong><\/h4>\n<h4><\/h4>\n<p><span style=\"font-size: 18pt;\">Nigeria\u2019s official exchange rate at the Investors and Exporters window is currently N410.11\/$1.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 18pt;\">In an email communication sent to travel agencies, they were advised that exchange rates will be \u201cgoing from N420.86 to N460 per dollar on GDS\u201d starting today, Tuesday, July 13th 2021. They were also advised to \u201cissue all pending tickets\u201d using the new rates.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 18pt;\">The GDS is an acronym for Global Distribution System and is the platform used by the travel industry for issuing tickets. Booking platforms such as Amadeus, Sabre, Galileo, etc, all running on GDS already have their exchange rate adjusted to N460\/$1.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 18pt;\">The adjustment in the exchange rate is a reflection of the market value of the naira in the exchange rate market. Unlike other industries, the travel industry has a history of relying on the official exchange rate (not IFEX) as a basis for issuing tickets after converting from dollars to naira.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 18pt;\">International airlines who are the original issuers of the tickets repatriate their funds by converting their naira proceeds into dollars based on the exchange rate.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 18pt;\">They also hedge against current risks by purchasing hedging instruments sold by the central bank.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 18pt;\">This adjustment reflects the market dynamics of Nigeria\u2019s exchange rate quagmire, as supply of dollars continues to struggle to meet demand.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 18pt;\">The latest move by the airlines to adjust the official exchange rate for selling tickets could be a precursor to a wider adjustment at the I&amp;E window which is what the central bank currently cites as Nigeria\u2019s exchange rate.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 18pt;\">What this means<\/span><\/p>\n<p><span style=\"font-size: 18pt;\">Nigerians looking to travel internationally but yet to purchase tickets will pay higher due to the adjustment.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 18pt;\">This means a $1,000 ticket that previously cost N420k will now cost N460k, a 9.3% rise.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 18pt;\">It is also likely that other ancillary charges outside of ticket cost may also increase in tandem. For example, travel agency fees, commissions, applicable taxes might all increase.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 18pt;\">While travel is a small subset of the consumer price index, this price increase is likely to impact the inflation rate.<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>International travel tickets in Nigeria are on track to rise following a directive to travel agencies to adjust exchange rates from N420.86 to N460, effectively an 8.5% devaluation. Nigeria\u2019s official exchange rate at the Investors and Exporters window is currently N410.11\/$1. &nbsp; In an email communication sent to travel agencies, they were advised that exchange [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":1443,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[12,15],"tags":[682,834,835],"class_list":["post-1442","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-aviation","category-business-news","tag-exchange-rate","tag-international-travel-tickets","tag-travel-agencies"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>International Travel Tickets To Rise As Travel Agencies Devalue Exchange Rate &#8212; Business Bells<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/mydailybells.com.ng\/businessbells\/international-travel-tickets-to-rise-as-travel-agencies-devalue-exchange-rate\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"International Travel Tickets To Rise As Travel Agencies Devalue Exchange Rate &#8212; Business Bells\" \/>\n<meta property=\"og:description\" content=\"International travel tickets in Nigeria are on track to rise following a directive to travel agencies to adjust exchange rates from N420.86 to N460, effectively an 8.5% devaluation. 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