HOLIDAY- MAKERS FLEE EURO-ZONE FOR ‘NEURO-ZONE’

Date: July 03, 2009

• Euro- zone suffers as the strength of the Euro continues to devalue Sterling
• Demand for Hungarian currency doubles in past two months
• Israel enters the Travelex Destination Index for the first time
• Travelex offers wider currency services than other foreign exchange companies

UK holiday-makers are ditching the Euro-zone for the ‘Neuro-zone’ - and exchanging their Euros for ‘Neuros’ - in an attempt to cut costs on their holidays, according to a new report released today by Travelex.

In light of the strengthening Euro and subsequent devaluation of British sterling by 17 percent in the last 12 months¹ , the leading foreign exchange specialist has identified the ‘Neuro-zone’ - aka the New Euro-zone – an Index ranking the 10 most popular destinations, outside the Euro-zone based on five core criteria including sales increases, volume of customer enquiries and tourist appeal².

Following its well documented rise in popularity, Turkey tops the list as the most popular ‘Neuro-zone’ destination with Travelex reporting sales of Turkish Lira up 20% compared to last year. Rather than forking out a budget busting £47 for a three-course-meal for two in France, UK holiday makers are opting to pay 64 per cent less at £17 in sun-drenched Turkey. Cheap flights to hotspots such as Bodrum from regional airports across the UK are also helping Turkey become ever more popular.

TRAVELEX’S ‘NEUROZONE’ DESTINATION INDEX:

Challenging Turkey in the popularity stakes are destinations such as Hungary and the Czech Republic which have both experienced a huge surge in consumer demand. Both destinations have been helped by the stag market, with on average, revellers saving as much as £200 on a weekend away compared to traditional Euro-zone destinations such as Dublin. £10 in the Czech Republic will buy you up to fourteen pints of local beer compared to Spain where you would be looking at just two to three beers for the same price.

Hungary has also hit the mainstream map and with £1.02 a beer and £35 a night accommodation, it’s no wonder Brits are by-passing the Euro-zone. Demand for the Forint, has doubled in the past two months alone, taking Hungary to 4th position in the Travelex ‘Neuro-zone’ rankings.

The report highlights that the boundaries of the ‘Neuro-zone’ are extending as far as Egypt, South Africa and UAE destinations, as holiday-makers are prepared to visit a long haul destination if it means better value on arrival. Demand for the Egyptian Pound has increased by nearly a fifth in past twelve months and the Dirham is up by 25% year on year. One of the most surprising entries into the Travelex Destination Index is Israel. Its fantastic night life and rich culture complete with breath-taking scenery and historic buildings have been cited as reasons from Travelex’s customer services team of its rising appeal. With the average cost of a three-course-meal equivalent to £20, Israel only looks set to rise in popularity.

Switzerland is also enjoying resurgence in popularity with orders of the Swiss Franc up by nearly a third (30%) in the past twelve months. The country has benefited from the decline in the popularity of the Euro-zone over the winter months with snow sports enthusiasts choosing the Swiss Alps over other European destinations in spite of its previous reputation as a destination for the rich. Croatia has also experienced a boost in popularity with enquiries on the currency increasing by a quarter in the past twelve months moving it up the Index rankings from 14th position in March 2008 to 5th in 2009.

Anthony Hudson , UK Retail Director – Travelex commented: ‘Our ‘Neuro-zone’ Destination Index highlights many destinations that were previously viewed as ‘off the beaten track’ are now challenging mainstream holiday hotspots, as the value of the Pound has fallen significantly over the last year. Holiday-makers are also taking the time to look at which currencies are offering them the best return in investment, as with everyone conscious of budgets, holiday-makers are now more than previously looking for a destination that offers them a great break but not at crippling prices’.

Travelex, unlike many of its competitors offers access to all the currencies identified as the making up the ‘Neuro-zone’. Across its network of shops and online, travellers can gain access to over 70 currencies and by taking advantage of the Travelex.co.uk Price Promise guarantee can ensure the best currency deal, commission free or the difference refunded

Whilst competitors may boast of commission free deals, in reality many of these offers only apply to Euros and US Dollars and not to destinations that are becoming increasingly mainstream. Caxton FX only offer Euro and Dollars on their currency card and Fair FX although offering 21 currencies, only offer just over 50% of the destinations identified as making up the Neuro-zone and you will be charged £6 for having the currency delivered to your home. Even on Euros, for first time users of Fair FX’s card, holiday-makers need to shell out a massive £9.95 to get the card. Even if purchasing only £100 worth of Euros, you’ll lose out on average around £8 buying with Fair FX, compared to buying online at Travelex.co.uk

Hudson added: ‘What Travelex offers is an unbeatable selection of currency services, giving holiday makers access to all of the currencies in the ‘Neuro-zone’ at great value. Whilst our competitors may claim to offer unbeatable deals this is often exclusively on Euro and US Dollars, meaning that anyone travelling outside of these destinations may struggle to get the currency they need. Travelex offers access to over 70 currencies and a range of ways to buy whether online, delivered to your door or at the airport ensuring that you get a great deal on your currency.’

For best price foreign exchange or to track currency rates, visit www.travelex.co.uk

¹ The value of Euro stands at 1.0305 on 23rd March 2009; one year ago its value equated to 1.2415
² Popularity is ranked according to five core criteria, namely: percentage increase in amount of currency purchased; percentage increase in destination enquiries to Travelex customer services; proximity to the UK; quantity and popularity of tourist attractions; and the relative cost of beer, food, a bottle of wine and accommodation.

Ends

Kat McGettigan
Talk PR
07863159494
Kat.mcgettigan@talkpr.com

ABOUT TRAVELEX
Travelex is the world's largest foreign exchange specialist with over 700 retail branches in more than 20 countries, at key airport, seaport, rail and tourist locations. Over 40% of travellers - 1.7 billion passengers a year - pass through airports where Travelex operates including the major gateways at Amsterdam, Beijing, Frankfurt, Hong Kong, London, Mumbai, New York, Rome, Sydney & Tokyo. Every hour, Travelex provides foreign currency to more than 2,000 customers.

Travelex Online & the Travelex Price Promise
Travelex.co.uk, guarantees the best price, commission-free foreign currency in the UK. Every day Travelex.co.uk monitors the exchange rates of the leading Banks, High Street foreign currency providers (Travel Agencies, The Post Office, M&S) and a basket of other online providers to ensure we offer customers the best deal. If any provider should happen to beat us on any of our 60 currencies, we refund the difference.