British holidaymakers are being left out of pocket by commission free foreign exchange offers according to research findings published today by holiday money specialist Travelex.

This week Travelex carried out research among high street and online foreign exchange providers that offer a commission free service and found that confusing terms and conditions, hidden charges and inconsistent exchange rates are costing UK tourists.

The study investigated how many Euros could be purchased for £300, the average amount exchanged by a UK holidaymaker. The research found that the cost of buying commission free varies by more than 12 Euros (£8.30) depending on which retailer is chosen. Of the ten different commission free deals that were carried out in the study, the greatest number of Euros returned for £300 was €432.60. The worst commission free offer returned €420.00.

In addition to the varying sums offered by the deals, the research also revealed that in some cases, providers that do charge a commission offer better value for money than those that don't.

Travelex's research shows the different returns offered by commission free deals:

Data gathered on May 14, 2004

According to Travelex, the difference in the return is due most commonly to the variation in the exchange rates that are offered by different foreign exchange providers. It is also affected by additional charges made for delivery of the money, if it needs to be sent. In some case the value of commission free deals can be severely restricted by confusing terms and conditions that limit amounts changed, restrict eligible currencies and stipulate that deals are only available at certain locations.

Paul Swainson, Director of UK Retail, Travelex, commented: "Sadly commission free doesn't guarantee value for money and there is a huge variation in the return that travellers can get when obtaining their holiday money. Some providers will mislead customers with what appears to be a great commission free deal, only to include confusing conditions in the small print."

Despite this, the majority of British holidaymakers continue to see commission free as offering the best value, and too few are prepared to shop around and compare the exchange rates that are on offer. Travelex conducted additional research among UK holidaymakers to investigate attitudes to commission free exchange and found that the majority (91%) perceived that commission free deals offer the best value for money. However only one quarter (25%) would consider looking at the exchange rate offered as part of the commission free deal and fewer still (20%) would compare deals offered by different foreign exchange providers.

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 spend a little bit of time shopping around because it will almost certainly save them money."

Travelex's Price Promise guarantees the lowest price in the 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. It has the most competitive exchange rates in the UK and, as Travelex has bureaux located at every major airport and seaport in the UK, money is collected at the airport on the day of departure, so no delivery charges are necessary. It remains the lowest price in the UK because a team of experts constantly check prices of all its competitors to ensure it guarantees customers the best possible deal.

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