Research reveals Euro uncertainty

Citation

(1999), "Research reveals Euro uncertainty", European Business Review, Vol. 99 No. 3. https://doi.org/10.1108/ebr.1999.05499cab.001

Research reveals Euro uncertainty

Research reveals Euro uncertainty (London, 26 January 1999)

Keywords Currency, European Union, Single Market

One in five business travellers did not know that the Euro was being introduced electronically in 1999 according to a recent survey of 750 business travellers staying at 63 Inter-Continental hotels and resorts throughout Europe.

The survey (details illustrated in Table I) also found that 73 per cent of business people from the 11 countries participating in the Euro ­ known as the Eurozone ­ were aware that Euro currency and cheques were being introduced in 2002. But only 42 per cent of travellers from outside the Eurozone were aware of this date.

There was also confusion about the number of countries that were in the first wave of the euro. Only six out of ten business travellers from eurozone countries were aware of the correct number, and just four out of ten non-Eurozone business travellers understood the number of countries involved.

There was even less understanding of the number of EU countries that will not be initially participating in the Euro. Only one in ten people surveyed could name the four, though more than half of those questioned were aware that Great Britain was not in the first wave.

Adrian Simpson, Inter-Continental Hotels and Resorts' Vice President marketing in Europe said, "Despite the fact that the Euro has already been introduced, there is still great uncertainty in the European business community about the impact of the Euro and indeed which countries are involved and when things will happen. However, two thirds of the people we talked to felt the euro will improve business conditions, particularly in the long term. Our customers said they felt it will make travel more convenient and they are looking forward to greater price transparency and lower currency costs."

"But at least a third of our survey was worried about the complications that the Euro will bring and expect a difficult transition period, particularly because not all EU countries are participating from the start."

Inter-Continental Hotels and Resorts has already written to frequent guests, corporate buyers, travel agents and suppliers to explain the practical implications for everyone involved in the Euro. Staff at each Inter-Continental hotel in the Eurozone are fully conversant with the Euro and able to take payment by travellers' cheque, personal cheque or credit card.

Corporate customers in the Eurozone will receive dual priced contracts and InterContinental is guaranteeing that Euro conversion won't cost customers more, even when rounding up and rounding down is required. Travel agents in the Eurozone will be paid commission in Euros unless they request otherwise.

Guests staying at Inter-Continental hotels outside the Eurozone will continue to have their bills printed in local currency. Corporate customers will continue to have their contracts in local currency and non-Eurozone travel agents can choose to receive commission in local currency, sterling, dollars or Euro.