Cashed up: Increasing international travel to Australia boosts demand for industry services

Demand for foreign currency exchange services has strongly grown over the past five years as world economies have become more interconnected. Growth in the volume of foreign currency exchange transactions is expected to be underpinned by the rising volume of people travelling in and out of Australia. Strong growth in the number of international students choosing to study in Australia has also contributed to the rise in industry demand over the period. Over the five years through 2017-18, industry revenue is forecast to grow at an annualised 4.5% to reach $1.7 billion. Industry revenue is expected to grow by 3.1% in the current year as the number of overseas visitors and international students entering Australia continues to grow...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 13-18
4.5%
Forecast Growth 18-23
Profit
Employment
6,296
Businesses
8,109

Industry Threats & Opportunities

  • The increasing number of overseas tourists and students has driven revenue growth
  • Kiosks and banks have enhanced their online offerings over the past five years
  • Profitability is likely to rise due to the growing proportion of transactions conducted online
  • Industry Report - Industry Investment Chapter

    The Foreign Currency Exchange Services industry exhibits a moderate level of capital intensity. For every dollar spent on capital expenses, $8.21 is spent on wages. This relatively low level of capital is characteristic of a financial services industry, with lower capital expenditure due to inexpensive requirements of computer systems and storefront fittings. This is especially true for retail foreign exchange operators, which have smaller operating areas. Capital intensity is expected to increase over the next five years due to higher penetration of online players with no physical presence and the ongoing rollout of self-service foreign currency dispensers by the major banks...purchase to read more.

    Additional Insights for the Foreign Currency Exchange Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Foreign Currency Exchange Services Industry are

  • Ability to control stock on hand
  • Having a good reputation
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as International travel to Australia and International travel by Australians in the Foreign Currency Exchange Services industry impact industry performance..

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    What's in this report

    What is the Foreign Currency Exchange Services Industry?

    Firms in this industry offer retail foreign currency exchange services to the public. The industry excludes wholesale foreign currency dealing services to institutions and investors.

    Industry Products
  • Kiosk operations
  • Retail bank foreign exchange
  • Online foreign exchange
  • Instore foreign exchange
  • Industry Activities
  • Currency exchange services through and online outlets
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • International travel to Australia
  • International travel by Australians
  • Number of foreign students
  • Net migration
  • Trade-weighted index

  • Current Performance
  • Fluctuating Australian dollar
  • Tourism and travel
  • Moving online
  • Profitability and other trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Tourism and travel
  • Profitability and technology
  • Table: Foreign Currency Exchange Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Foreign Currency Exchange Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Computer and Software Retailing
  • Financial Planning and Investment Advice
  • National and Regional Commercial Banks

  • Products & Services
  • Retail bank foreign exchange
  • Kiosk operations
  • Online foreign exchange
  • Instore foreign exchange
  • Chart: Foreign Currency Exchange Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 41 to 60 years
  • Consumers aged 26 to 40 years
  • Consumers aged 25 years and under
  • Consumers aged 61 years and older
  • Chart: Major Market Segmentation for the Foreign Currency Exchange Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Foreign Currency Exchange Services

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Foreign Currency Exchange Services Industry

  • Industry Globalization
    Travelex Limited, Travelex Limited,
  • Table: Travelex Limited - financial performance
  • Table: Travelex Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Foreign Currency Exchange Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Foreign Currency Exchange Services Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Bid-Ask Spread
  • The difference between the buying and selling price of a currency.
  • Hedging
  • An investment position that aims to offset any risk posed by a companion investment.
  • Spot Rate
  • The immediate market price for a foreign currency.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Foreign Currency Exchange Services market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Foreign Currency Exchange Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Foreign Currency Exchange Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Foreign Currency Exchange Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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