Holidaymakers are often being hit with higher charges at the airport, as new research from travel debit card company, Currensea, suggests that nearly three in 10 (27%) people are losing out due to unfavourable exchange rates and higher fees at Bureau de Change. The study reveals that almost eight million travellers fall into this trap, which significantly impacts their holiday budgets.
Parents with school-aged children and younger travellers aged between 18-34 are at a greater risk of squandering their holiday savings – over four in 10 (44%) parents and nearly half (45%) of young adults confess they exchange most of their cash at the airport despite the steeper exchange rate and fees. The unattractive rates offered at airports can also affect budgets if travellers receive less cash than anticipated, potentially leaving them short of money while overseas and dependent on foreign ATMs.
Currensea reported that two-thirds (67%) of people felt cheated when they have to pay to withdraw money from ATMs abroad and are hit with fees.
The foreign currency specialists highlighted a lack of understanding around the cost of using bank cards while overseas – half (49%) of travellers admit that they never actually know how much they are being charged to withdraw foreign currency while on holiday, reports the Daily Record.
Similarly, more than half (55%) of travellers always feel like they are being ‘ripped off’ when using their bank’s debit card abroad and around half (47%) are ‘shocked’ by how much their bank charges them in fees. Holidaymakers opting for cash could be in for a nasty surprise with extra charges once their trip is over, especially if they need to convert any leftover foreign currency back to Sterling – potentially racking up more fees and adding to the cost of their holiday.
Co-founder of Currensea, James Lynn, advised against exchanging currency at airports: “Travellers are getting ripped off exchanging their holiday money at airports. While the convenience of using airport Bureau de Change is tempting for those who want last-minute cash, people risk losing hundreds of pounds on extortionate exchange rates and fees before they have even taken off.”
Lynn also highlighted the importance of making every penny count: “With the financial pressures of the past few years it is more important than ever to maximise the holiday budget. Travellers should opt for specialist travel cards that offer more value, help them avoid unnecessary fees and provide them with the freedom to spend as they wish abroad without incurring additional costs.”
Key findings from research conducted by Opinium of 2,000 UK adults in October found:
- 49% of people never know how much they are being charged to withdraw foreign currency while abroad
- 27% of travellers still exchange most of their holiday money at airports
- 67% of people feel ripped off when they have to pay to withdraw money from an ATM abroad
- 55% of travellers say they always feel like they’re being ripped off when they use their debit card abroad
- 47% say they’re always shocked by how much their bank charges them in fees when they use their card abroad