Jet-setting UK families will throw away £319m through notoriously poor airport exchange rates, a study reveals.
On average, families lose £76 at airports, as over a third (36%) of parents choose to change their money at airports.
This is due to half (51%) of parents with children of school age believing the exchange rate at airports is better value for money than elsewhere.
The reasons for this being commonplace with families are down to time pressures and exchanging money not being a priority, particularly when compared to travellers without children.
Six in 10 (58%) families said exchanging cash is one of the last things they do before going on holiday, while two-fifths (39%) do not consider how they’ll pay for a trip until arriving at the airport.
Reliance on cash causes further exchange rate issues
However, with more time to focus on their holiday, less than a third (29%) of flyers without children do the same, according to Currensea’s survey of 2,000 UK adults.
Meanwhile, another barrier for many families making the most of their euros, dollars and other foreign currency is the reliance on cash to pay for their trip, which a fifth (17%) of families do.
With families taking home an average of £77 in cash back from their trip abroad, they face yet more low-value returns at the airport, compared to if they waited to shop around for the best exchange rates for their sterling once they arrive home.
Airport rates are usually much less attractive than online comparison sites because of being in a ‘captive market’. This is when – like pricey food and drink on trains – there is no competition when deciding on what rates to choose.
UK holidaymakers lose nearly £3bn every year
As the Easter holidays approach, to guarantee the best rates ahead of travelling, James Lynn, the co-founder of Currensea, says holidaymakers should “explore cost-effective card alternatives that avoid unnecessarily high foreign exchange fees and hidden costs.”
Lynn said: “Securing value on your exchange rate should be as much of a priority as getting a great deal on flights and accommodation, yet families are wasting huge amounts by exchanging cash at airports rather than turning to low-cost options.
“UK holidaymakers are paying £2.7bn in unnecessary foreign exchange fees every year – this is especially true for families heading off for a well-deserved holiday this Easter.”
They need to maximise their savings, but relying on cash – especially from extortionate airport providers – is proving expensive for busy families.”
The travel debit card company provided five tips to ensure families avoid getting stung when travelling abroad.
Five tips to save money on holiday
- Avoid exchanging money at the airport – it might be convenient but it tends to include extortionate service fees.
- 0% commission isn’t always the best deal when exchanging currencies. Many providers include hidden costs by working profit into their exchange rate instead.
- Don’t get hit by overseas ATM charges – some can charge you around £5 for every transaction.
- Always pay in local currency when abroad – often card machines ask you to pick between GBP and the local currency. Don’t make the mistake of choosing GBP.
- If you’re thinking about using a pre-paid card, check the fees to withdraw any leftover funds at the end so you’re not caught out.
