Travelex United Arab Emirates
TRAVELEX PRESS RELEASE
BRITISH TOURISTS COUNT THE COST OF ONLINE EXCHANGE
Date : August, 2006
British holidaymakers are being left out of pocket by foreign exchange providers operating on the Internet according to research by holiday money specialist Travelex.
Travelex today revealed the findings from a study that looked at the ten most popular websites offering foreign exchange. The research, carried out last week, found that uncompetitive rates, hidden handling charges and delivery fees are costing UK tourists more than £6 million every year.
According to Travelex’s market research the online travel money market has grown by more than 500 per cent since 2003. In 2006 the company predicts that growth will continue, with British tourists changing more than £300 million into various currencies over the Internet. *
The study investigated how many Euros could be purchased for £300, the average amount exchanged by a UK holidaymaker. The research found that the total cost varied by almost €13.00 (£8.50) depending on which online foreign exchange provider was chosen. Of the ten different deals carried out in the study, the greatest number of Euros returned for £300 was €416.16. The worst offer was from the Post Office which returned just €403.74.
Travelex’s research shows the different returns offered by the online providers:
| FX providers | Euro rate | Commissions | Handling Fees | Delivery charges | Number of Euros |
|---|---|---|---|---|---|
| www.travelex.co.uk | 1.3872 | £0.00 | £0.00 | £0.00 | €416.16 |
| www.interchangefx.co.uk | 1.405 | £0.00 | £5.00 | £6.00 | €413.07 |
| www.crowncurrencyexchange.com | 1.3952 | £0.00 | £5.00 | £0.00 | €411.58 |
| www.hsbc.co.uk | 1.3735 | £0.00 | £3.95 | £0.00 | €412.05 |
| www.onlinefx.co.uk | 1.3871 | £0.00 | £4.95 | £0.00 | €409.26 |
| www.marksandspencers.com | 1.386 | £0.00 | £0.00 | £5.00 | €408.87 |
| www.iceplc.com | 1.379 | £0.00 | £4.95 | £0.00 | €406.87 |
| www.thomascook.com | 1.35 | £0.00 | £0.00 | £0.00 | €405.00 |
| www.lloydstsb.com | 1.3669 | £0.00 | £0.00 | £4.50 | €403.92 |
| www.postoffice.co.uk | 1.3686 | £0.00 | £0.00 | £5.00 | €403.74 |
Data gathered on 4th April 2006
According to Travelex, the difference in the return is only partly due to the variation in the exchange rates that are offered by different foreign exchange providers. The greatest cost though comes from additional ‘handling’ fees and charges made for delivery of the money. In some case extra charges are levied for transactions of less than £500 and often providers will hide fees behind free delivery and commission free exchange promises.
Paul Swainson, Director of UK Retail, Travelex, commented: “The growth of online retail has really started to take off in the foreign exchange market and hundreds of thousands of British consumers are starting to appreciate the convenience and value of buying their travel money over the Internet. However, there is still a risk that, having been lured in with a commission free deal and a seemingly competitive rate of exchange, consumers are being hit with an excessive and at times unnecessary cost for handling or delivery. This additional cost can very quickly turn a reasonable deal into a rip off.”
Swainson added: “There is no shortage of places for people to obtain foreign currency but we would always advise that they look at the total cost of purchase that includes commission, cost of delivery, exchange rate and any handling fee. We would also urge holidaymakers to take the time to shop around as it will almost certainly save them money.”
Travelex’s online Price Promise guarantees the best price for foreign exchange in the entire UK, combined with a ‘refund the difference’ offer if customers find a cheaper price anywhere else on the same day. The service’s instant refund on confirmation is available to any customers ordering foreign currency online at www.travelex.co.uk.
Travelex branches are located at every major airport and seaport in the UK and allow travellers to collect their holiday money at these gateways on the day of departure. This enables Travelex to offer the most competitive exchange rates in the UK with no delivery charges necessary. It remains the lowest price in the UK because a team of experts constantly checks competitors’ rates to ensure customers are guaranteed the best possible deal.
- Ends -
For Further Information:
*Travelex Market research June 2003 – April 2006
For further information please contact:
| Chris Hides | Alex Blundell |
| Talk PR 0207 544 3691 07808 734624 |
Talk PR 0207 543 4735 0777 591 6663 |
About Travelex:
Travelex is the world's largest foreign exchange specialist, with over 700 retail branches and 16,000 business customers. There are retail branches at key airport, seaport and rail locations, in addition to tourist and business centres around the world. Around 40% of the world's airline passengers, over 1.3 billion people, pass through airports at which the business operates including the major gateways at London, New York, Hong Kong, Frankfurt and Sydney.
Travelex is the world's largest non-bank provider of commercial foreign exchange services, providing integrated solutions for businesses. The group is also one of the world's leading providers of outsourced travel money to banks, travel agencies and other financial institutions and one of the world's oldest issuers of Travellers Cheques.