You are here: Home - Credit Cards & Loans -

Holidaymakers hit by high currency exchange rates

0
Written by:
21/05/2008

A weak pound against the euro and high airport currency exchange rates means Briton’s holiday money might not stretch as far as hoped, according to FairFX.

Holidaymakers flying from Luton, Newcastle, Liverpool, Leeds, and City airports could be paying well over the odds for their holiday money.

The prepaid currency card provider has discovered these airports are the most expensive UK departure points for buying foreign currency ahead of the half-term rush to sunnier climes.

Travellers planning to head abroad over the summer holidays could be paying as much as 11% more for foreign currency if they leave it until they get to the airport compared to organising beforehand.

Indeed, many travel money providers claim they offer travellers 0% commission but, as the FairFX.com analysis shows, this hides the true margins they add to wholesale currency rates when providing foreign exchange for travel purposes.

According to research conducted for FairFX.com by YouGov, three-quarters of travellers typically use cash when they spend abroad. Travel cash bought outside of the airport can also be overpriced. Most high street providers charge, on average, a 5% premium. The one in four Brits who favour plastic will also be paying a premium to use their cards abroad, usually around 3%.

Stephen Heath, chief executive of FairFX.com, said: “Since the second half of April the pound has gained over 2.5% against the euro and lost 2.5% against the dollar. Despite the pound’s current weakness, we will hopefully see some better rates for holidaymakers travelling to Europe in the next few weeks, but this is of little help to hard up Brits going away now.

“Most providers rely on the fact holidaymakers will be in a complete rush when preparing for a trip abroad, and either fail to organise currency before they get to the airport or opt to use costly credit or debit cards for their foreign spending. Our analysis shows to what extent this approach could be costing travellers dear. Whichever way you look at it UK travellers are losing out when they buy currency.”

Related Posts

Tagged:

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

  • Given the Brexit uncertainty, you may be looking to protect your pounds ahead of your next holiday. Here are five w… https://t.co/pjn2d3P41E
  • If you are concerned you may miss the 31 January HMRC deadline to file your tax return, here are five excuses that… https://t.co/BRoNxdNLXM
  • Millions of Lloyds, Halifax and Bank of Scotland customers unable to make and receive payments in latest bank IT me… https://t.co/bKospYHViX
  • RT @YourMoneyUK: Millions of Lloyds, Halifax and Bank of Scotland customers unable to make and receive payments in latest bank IT meltdown…
  • RT @YourMoneyUK: Millions of Lloyds, Halifax and Bank of Scotland customers unable to make and receive payments in latest bank IT meltdown…
  • Make sure you're not paying more than you need to for your #energy. Check when your fixed deal ends and pop a note… https://t.co/OCfiU236o1

Read previous post:
Internet banking soars in popularity

The majority of Internet banking customers at Norwich and Peterborough Building Society (N&P) say they could not imagine going back...

Close