Opening A Currency Exchange Office

[simon43]

To exploit the close location of my hotel to Phuket Airport, I have recently added low-cost camping tents for students and backpackers who can walk the short distance from the airport (= no taxi expense). This is working very well and the additional income is paying for the hotel monthly electricity bill.

Now I'm trying to think of other 'value-adds' that I can offer. I immediately thought of operating a currency exchange service from my hotel. This is because the currency exchange offices at the airport close at 8pm, yet many tourists arrive after that hour with the need to exchange foreign currency. (Of course, many do use the ATM machines, but I also know that a fair number of late arrivals want to change their Korean, Chinese or US notes into Thai baht).

Are there any rules about operating a currency exchange office? Or can I simply start to offer this service 24/7? Of course, it will only be justifiable if I can charge a reasonably high exchange fee!

And any other ideas about leveraging my proximity to the airport? There are already car and bike hire, ticket agents massage shops and 7/11

Thanks for any advice!

Simon

[Mario2008]

The Bank of Thailand would be the best to answer this question: http://www.bot.or.th

There is an exchange control act:http://www.bot.or.th/English/LawsAndRegulations/Pages/Law_4.aspx

Which might tell you more.

[simon43]

thanks Mario - nothing much in that 67 year old act... I'll ask my lawyer re this. I guess that low levels of currency exchange is not a big issue since many hotels already offer this service.

Simon

[steve73]

Simon,

I'm sure there's nothing to stop you offerring a personal service - you could even exchange for monopoly money if you wanted...!

But things to beware of: you'll need the keep a reasonably large reserve of baht available (security risk?), you'll get a poor rate when you come to change your foriegn currency at the bank unless it's $, GBP, or EU. (many other threads discuss the poor official inter-asian currency rates), Or unless you decide to hold these currencies to trade back the other way (in which case security risk, cash tied up in something useless, and risk of exchange rate moves spring to mind) And finally, can you spot forgeries. Many notes look difficult to forge but would you really recognise them, and even the US $ looks like its simply been photocopied anyway.

And if you did offer a rate adequate to cover your costs, you'd be treated as a shark and possibly lose any repeat business at you camp-site/hotel.

but good luck in these difficult times.

[siam2007]

Simon,

I'm sure there's nothing to stop you offerring a personal service - you could even exchange for monopoly money if you wanted...!

But things to beware of: you'll need the keep a reasonably large reserve of baht available (security risk?), you'll get a poor rate when you come to change your foriegn currency at the bank unless it's $, GBP, or EU. (many other threads discuss the poor official inter-asian currency rates), Or unless you decide to hold these currencies to trade back the other way (in which case security risk, cash tied up in something useless, and risk of exchange rate moves spring to mind) And finally, can you spot forgeries. Many notes look difficult to forge but would you really recognise them, and even the US $ looks like its simply been photocopied anyway.

And if you did offer a rate adequate to cover your costs, you'd be treated as a shark and possibly lose any repeat business at you camp-site/hotel.

but good luck in these difficult times.

I couldnt agree more. a big risk and the danger of attracting people from the dark corner (of which there are plenty to be found in HKT). even if he is a police-volunteer, that doesnt make him immune. as we all now, the BIB are usually the biggest culprits themselves. I think its definitely not worth taking the risk....

[torrenova]

Forget the idea. I see the positives but as the actual amounts involved are likely to be very small from foreign currency to THB there is little there and if you were trying to hold USD/GBP/EUR etc. then you'd be at the behest of the FX markets. Couple that with the high margins you would have to charge and perhaps the best scenario is just to say no.

To leverage your location, why not have some decent and professionally printed surveys printed up for departing guests, offering them perhaps the chance to have their stay costs refunded (say 1 or 2 a month) or a free coffee or beer to get some decent empirical information ?

Don't just bang out a few questions, go read about surveys and the science behind them. Work out what you need and what you don't need. Simply ask things about what they liked best and what they didn't. What they would have liked, what they expected but did not get and such like.

Time spent on survey and questionnaire design is critical or you just get back a load of garbage. The information would be invaluable I think.

Edited April 9, 2009 by torrenova

[simon43]

Hi Torrenova, thanks for the comments. Based on these comments (and my own deep thought!), I'll give the FX office a miss...

I already give departing guests the 3rd degree concerning the good and bad points about their stay. They also give feedback on the TripAdvisor website. Based on some issues coming up on several occasions, I making changing a few things in my hotel.

But no-one has commented that such-and-such is missing from the offer! This is probably because guests typically only stay for a single night, and therefore either do not have time to identify any services that would be useful, or are quite happy to give these services a miss for that night.

Simon

[filingaccount]

But no-one has commented that such-and-such is missing from the offer! This is probably because guests typically only stay for a single night, and therefore either do not have time to identify any services that would be useful, or are quite happy to give these services a miss for that night.

Simon

If you have guests staying a single night or short stays only, I would suppose the key for them is to be able to get some decent sleep and relaxation. Ask them about the sleep they had, the mattress ok? Was it quiet? Would they have appreciated a massage (not the x-rated kind), since they would be traveling shortly (or just have traveled)?

From my own, although limited, experience traveling I always want to have access to my favorite fluids (water and coke) and I don't want anyone to bother me needlessly (eg. someone asking me what I want from their location would be met with an answer of "nothing" or "don't know").

Don't discount clean and fresh surroundings (remove dust, noise, anything old and run down). Something that looks and smells clean lifts the mood of everyone instantly. CLEAN BATHROOMS! And I mean, clean them religiously.

As for the currency exchange idea, talk to the local non-bank exchange rate licensed agencies. Take a %, and let them run it.

Whats that worth? 2 satang? better than a spit in a cup I hope.

[simon43]

Filingaccount - some useful tips. I am already investigating buying latex 'topper' mattresses for the beds. I'll buy one as a test and then purchase for all the rooms if it works ok with the 'test'.

Another idea is to open a shop onsite. I am always being asked by guests where they can buy souvenirs (other than at the expensive airport shop). Also, the sale of basic things like suitcases, (many customers need to buy a cheap suitcase to help them to carry all their last-minute purchases...)

Simon