Brits Cash in on Holiday Spending
£1billion extra in foreign currency set to be taken abroad this summer

British holiday makers are ordering record amounts of foreign currency as budget-conscious tourists abandon credit cards in favour of cash, according to figures released today by Travelex.co.uk

The foreign exchange specialist predicts that almost £1bn extra currency will be taken abroad this year with figures revealing Britons on average are taking nearly £200 more in cash on holiday this year compared to summer 2007.

Feedback from customers ordering their currency online highlighted that the surge in demand for currency is primarily down to a fear of spending on credit in their destination this summer. Over sixty per cent of customers admitted to overspending with credit cards on previous holidays and felt more able to stay within their holiday budget when using cash. In a bid to cut holiday costs, a quarter (28%) of holiday-makers revealed that they planned to switch to spending with cash abroad rather than using credit cards.

In addition to concerns about overspending, hidden costs attached to credit cards were another major concern, with only one in four people admitting to fully understanding their own credit card fees. Travelex.co.uk identified that a family could incur as much as £25 in credit card transaction fees by using their credit card on a holiday abroad.*

Anthony Hudson, UK Retail Director, Travelex.co.uk, comments, “It’s interesting to see this change in behaviour amongst British holidaymakers. The British public are still going abroad for their holidays but people do seem to be managing their money much more carefully by purchasing more of their currency before they depart.  This allows holidaymakers to budget and avoid overspending as well as avoiding transactions fees levied by the card providers. They can also get a much better rate by making the most of UK online pre-order offers. Travelex.co.uk’s Price Promise guarantees our customers commission free and the best rate of exchange or we will refund the difference.”

The cash being ordered also shows that holiday makers are avoiding travelling to the euro-zone, where the increasing strength of the Euro has added as much as £250 to the cost of a holiday this year.** Demand for currencies in long-haul destinations such as USA, Egypt, Thailand and Dubai, where the pound has remained strong is up by nearly fifteen per cent compared to this time last year. Destinations closer to home but outside the Euro-zone such as Switzerland and Turkey have also proved popular, with demand for the Lira up by nearly 25 per cent. Fluctuations in currency has also led to a surge in demand for traveller’s cheques and prepaid cards on travelex.co.uk as holidaymakers look to fix exchange rates rather than risk further possible declines in the value of the pound.

Hannah Feltham, Surrey, comments: “I’ve just got back from Croatia and I couldn’t believe that I actually had some money left. I went to the same place last year and budgeted for about £60 a day but I mainly just used my credit card to take out cash and ended up going well over budget. I decided to be a bit more organised this time around and ordered my currency before I left. With a card it just doesn’t seem like you are spending the money but with cash it’s different. You can actually see it disappearing before your eyes and I spent around £150 less than last year.”

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

NOTES TO EDITORS

Case study available for interview or comment.

Kat McGettigan or Nathan Kemp

Kat.McGettigan@talkpr.com or Nathank@talkpr.com
020 7544 3804 /0207 543 4670
07863159494 / 07766977318

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. Over 40% of travellers and 1.5 billion passengers pass through airports at which the business operates including the major gateways at London, New York, Hong Kong, Frankfurt and Sydney.

Travelex is also the world's largest non-bank provider of international payment services, providing integrated payment 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.