New money warning to millions of people planning to holiday abroad this year

Linda Howard
·3-min read

Holidaymakers are often attracted by the convenience of using airport Bureau de Change ahead of leaving the country, however, new research from travel debit card, Currensea, indicates that almost three in 10 (27%) people are losing out due to poor exchange rates and higher fees. The survey shows that almost eight million travellers do this which eats into holiday budgets.

Parents of school age children and younger travellers aged 18-34 are at higher risk of wasting their holiday savings - over four in 10 (44%) parents and nearly half (45%) of young adults admit they exchange most of their cash at the airport despite the higher exchange rate and fees. The poor rates on offer at airports can also impact budgets if travellers receive lower amounts of cash than planned, this may leave them short of cash while abroad and reliant on foreign ATMs.

READ MORE: Finance expert warns people with money in a savings account to check it now

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Currensea said that two-thirds (67%) of people revealed they felt ripped off when they have to pay to withdraw money from ATMs abroad and are hit with fees. The foreign currency experts said there is a lack of understanding around the cost of using bank cards while overseas - half (49%) of travellers admit that they never actually know how much they are being charged to withdraw foreign currency while on holiday.

Similarly, more than half (55%) of travellers always feel like they are being ‘ripped off’ when using their bank’s debit card abroad and around half (47%) are ‘shocked’ by how much their bank charges them in fees.

Relying on cash for holidays also risks travellers being hit with additional fees when they return home. If individuals have any remaining foreign currency, exchanging it back into Sterling may incur additional fees which add to the overall cost of a holiday.

James Lynn, Co-founder of Currensea, said: “Travellers are getting ripped off exchanging their holiday money at airports. While the convenience of using airport Bureau de Change is tempting for those who want last-minute cash, people risk losing hundreds of pounds on extortionate exchange rates and fees before they have even taken off.

“With the financial pressures of the past few years it is more important than ever to maximise the holiday budget. Travellers should opt for specialist travel cards that offer more value, help them avoid unnecessary fees and provide them with the freedom to spend as they wish abroad without incurring additional costs.”

Key findings from research conducted by Opinium of 2,000 UK adults in October found:

  • 27% of travellers still exchange most of their holiday money at airports

  • 67% of people feel ripped off when they have to pay to withdraw money from an ATM abroad

  • 49% of people never know how much they are being charged to withdraw foreign currency while abroad

  • 55% of travellers say they always feel like they’re being ripped off when they use their debit card abroad

  • 47% say they’re always shocked by how much their bank charges them in fees when they use their card abroad

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