Half-term holidaymakers face higher costs abroad

Passport and money

British holidaymakers going abroad for the bank holiday, upcoming half term or summer break, will see a dramatic decrease in their spending power, according to a foreign exchange specialist.

Moneycorp said the pound has become weaker against 80% of the top global currencies in the last year, including the Euro, the US Dollar and the Australian Dollar.

The pound is now 6% weaker against the Euro since last May, with the current exchange rate at €1.16. This means if holidaymakers were to exchange £500 they would now get £582.30, £30 less than they would have got last year.

The pound is also 4% weaker against the US dollar and 4.7% weaker against the Australian Dollar since last May, with the exchange rate nearly 30% weaker against the Australian Dollar than it was four years ago.

The exchange rate for the dollar is currently $1.51, with consumers now getting £756.05 for every £500 converted.

But British holidaymakers travelling to Mexico will be the worst hit, with the pound 10.5% weaker, meaning you would have £52.47 less compared with last year if you converted £500.

Matthijs Boon, Moneycorp's director of travel money, said: "The weak performance of Sterling over the past 12 months means our summer pounds aren't going to stretch quite as far this year as they did last year."

Long-haul destinations

The currency firm said travellers would have head to long-haul destinations to make the most of their money.

In the last 12 months, the pound is 15% stronger against the Japanese Yen, with Britons getting an extra £74 on every £500 they convert, compared with last year.

Boon added: "Cheaper destination costs will need to be weighed up against the higher price of flights to get there, when compared to hopping on a plane over to mainland Europe."

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