BTN News: Isidoro J. Alanís, a self-made entrepreneur, stands as a beacon of resilience and ambition in the economic landscape. His journey began humbly in the small village of Fuentes de Oñoro, Salamanca, where his parents ran a business. It was in 1996, fresh out of university with a degree in Business Administration and Management, that Alanís was tasked by his parents to open a currency exchange office. This was during a time when border trade with Portugal was booming, and the exchange of pesetas and escudos was commonplace. Little did he know that this modest venture would lay the groundwork for what is now a global leader in the currency exchange industry—Global Exchange.
From its inception, Alanís displayed an uncanny ability to seize opportunities, swiftly expanding the business with additional offices in Badajoz and Tui, both strategically located near the Portuguese border. These early successes, achieved in an era devoid of mobile phones and with limited access to credit cards, fueled the company’s ambition to expand beyond Spain. The first leap was to Latin America, followed by a foray into non-Spanish-speaking countries like Morocco. Today, Global Exchange operates on every continent, with a presence in 68 airports across the globe. “We can now board a plane in Australia, travel to Hong Kong, then to Bahrain, Jordan, Turkey, Europe… we are everywhere,” Alanís proudly states.
The company, still wholly family-owned, has grown into a multinational powerhouse. In 2023, it reported a revenue of €266 million, a 22% increase from the previous year. Global Exchange employs 2,480 people and operates 376 offices, making it the second-largest provider of airport currency exchange services by volume worldwide. Its only significant competitor is the British giant, Travelex, while it also contends with numerous local money changers in various countries.
Each year, 12 million customers pass through Global Exchange’s windows, exchanging a staggering €1.3 billion in total. The company caters to tourists and business travelers alike, offering a reliable, fast, and accessible service. Alanís emphasizes the importance of efficiency in their business model, noting that customers are often in a hurry, either catching flights or arriving from long journeys, and cannot afford to wait. While the majority of their revenue comes from airport operations, the company also maintains around 70 offices in highly touristy areas and busy hotels.
The road to success has not been without its challenges. The company’s heavy reliance on air travel meant that the COVID-19 pandemic hit them particularly hard, causing a sharp decline in revenue. “We were among the hardest hit because, unlike hotels, we rely entirely on international tourists,” Alanís explains. In March 2022, the company received €45 million from Spain’s State Industrial Participation Company (SEPI) as part of a rescue fund. However, by June 2023, Global Exchange had repaid the loan, having secured a syndicated bank loan the previous year. Currently, the company’s debt stands at €80 million, with an EBITDA (earnings before interest, taxes, depreciation, and amortization) of €55 million.
Global Exchange expands its footprint in airports either through public tenders or by participating in competitive selection processes, often going head-to-head with its main rivals. The company also requires approval from monetary authorities in each country, as its operations are closely monitored to prevent money laundering. “We have infallible control systems to prevent money laundering; it’s our obsession,” says Alanís. The company meticulously records the serial numbers of all bills exchanged, ensuring that they know who provided each bill and under what circumstances—an essential aspect of their anti-counterfeiting measures.
Operating in such a competitive and regulated industry, Global Exchange’s primary costs are the fees paid for airport spaces, personnel, and technology. Alanís notes that each country presents unique challenges, from varying costs and regulations to different tender processes. The company charges a currency exchange differential, which can range from 5% to 15%, depending on the country. They pride themselves on being more competitive than their peers, thanks in part to the technology they develop in Spain and adapt for each market.
Despite the many challenges, including the risk of theft, Alanís remains optimistic. The company has robust control systems in place, though he acknowledges that there is always a risk of internal theft. “We’re all exposed to these kinds of situations when working with money,” he admits. However, Global Exchange continues to diversify its services, offering VAT refunds and home delivery of currency, among other services. After the pandemic-induced downturn, the company is once again thriving. “Tourism is behaving like champagne; it has exploded, and we’re breaking records. All airports are growing,” Alanís observes. With eyes set on the Asian market, the company is poised for further expansion. “They need to get to know you. It’s a matter of time, patience, and persistence,” he says, reflecting on the journey from a small village in Salamanca to becoming a global operator.
In a world increasingly dominated by digital payment methods, one might question the future of a business rooted in cash transactions. Yet, Alanís is steadfast in his belief that cash is here to stay. “We provide a cash service for when people travel abroad. It’s much safer to travel with cash than with cards. If an ATM keeps your card, you’ve got a problem—we’ve seen it many times,” he argues. He maintains that traveling with cash is the safest and most liberating option available. Despite the push towards a cashless society, Alanís is convinced that cash will remain an essential part of our financial system. “If they take away cash, they’ll take away our freedom,” he warns. According to the company’s surveys, 96% of respondents say they always travel with local currency when changing countries. Interestingly, even among younger generations, cash use is rising in places like the United Kingdom. “With a card, they don’t control their spending as much,” Alanís notes.
Global Exchange’s story is one of perseverance, adaptability, and a deep understanding of both the global market and the fundamental needs of travelers. As the world continues to evolve, Alanís and his team remain committed to providing a service that, despite the rise of digital payments, remains indispensable for millions of people around the world.
