Millions of holidaymakers planning trips abroad this year have been given a new warning regarding airport Bureau de Change services. A study conducted by travel debit card company, Currensea, has revealed that nearly 8 million people are jeopardising their holiday budget by exchanging currency at airports before departure. The allure of convenience often draws travellers to use airport exchange services, but the research indicates that almost three in 10 individuals are falling victim to poor exchange rates and higher fees.
According to the survey, approximately 27% of people are losing out on money by using airport Bureau de Change services, affecting nearly 8 million holidaymakers. Parents with school-age children and younger travellers between the ages of 18-34 are particularly at risk of depleting their holiday savings in this manner. Shockingly, over 40% of parents and nearly half of young adults admit to exchanging most of their cash at the airport despite the disadvantageous rates and fees.
The ramifications of relying on airport currency exchange go beyond affecting initial holiday budgets. Travellers who end up with less cash than anticipated due to poor rates might find themselves short of money abroad, potentially relying on foreign ATMs that can charge substantial fees. Research by Currensea revealed that two-thirds of people feel cheated when encountering ATM withdrawal fees overseas. Additionally, many travellers lack awareness of the costs associated with using bank cards abroad, with half admitting they are uncertain about the charges incurred when withdrawing foreign currency while on holiday.
In a bid to maximise holiday budgets, experts recommend opting for specialist travel cards that offer better value and help avoid unnecessary fees. James Lynn, Co-founder of Currensea, emphasised the importance of making informed choices to prevent travellers from losing money on unfavourable exchange rates and fees even before their journey begins. With financial pressures mounting in recent years, selecting the right payment method can make a significant difference in ensuring a more cost-effective and enjoyable holiday experience.
Furthermore, the pitfalls of relying on cash during holidays extend to the potential for extra charges upon returning home. Converting leftover foreign currency back into Sterling can result in additional fees, further inflating the overall cost of the trip. In light of these findings, travellers are encouraged to explore alternative payment options that offer better value and flexibility while abroad, minimising the risk of incurring unnecessary expenses.
In the realm of travel finance, the importance of making well-informed decisions cannot be understated. As holidaymakers gear up for trips abroad, being cognizant of the pitfalls of airport currency exchange and exploring alternative payment methods can go a long way in safeguarding their holiday budgets. By opting for specialist travel cards and staying informed about foreign transaction fees, travellers can ensure a more financially savvy and enjoyable travel experience.