Cash Management – Travel

Client Brief

A large provider of online travel and other leisure-related services was purchased by an even bigger US based entity. With numerous acquisitions, the European business had multiple legacy systems and processes that made it difficult for the new US parent to accurately forecast cash and FX exposures, a particular concern given that it had recently implemented pan-European cash pooling. PMC was asked to review European cash management activities.

PMC Solution
  • Define the various cash management profiles that existed within the business and performed a detailed review of cash forecasting practices;
  • Assess the business systems, organizational/cultural environments and identify factors which were likely contributors to the Group’s inability to accurately forecast cash and identify potential FX exposures;
  • Present findings and suggest improvements to management.
Results & Recommendations

We were able to help the client understand the key issues and recommend specific changes. These included increasing the profile of the European Treasury and its reporting line, implementing a 3rd party cash forecasting and streamlining the internal payments processes.