The vast majority of British holidaymakers overspend on their holidays because of confusion over exchange rates and sheer apathy to the rates they pay.
According to research from foreign currency provider, the Travel Money Club, an extraordinary nine in 10 (92%) Brits overspend on their holiday abroad because they are not sure what they are actually spending, in relative currency terms.
- See Moneywise’s guide to the best cards for overseas spending
On average, holidaymakers overspend by 54% above their intended budget. A quarter (24%) admit they run out of cash currency by day three of their trip.
The research showed Londoners to be the most frivolous with their money with three quarters (75%) admitting they regularly overspend on food and alcohol while abroad. Other frivolities include slogan t-shirts and sombreros. The Welsh were shown to be savviest, with fewer than one in three (29%) failing to stick to their budget abroad.
However, the underlining issue the survey highlights is just how many people don’t realise the impact of exchange rates and how much their foreign currency costs them. Three quarters (75%) are unaware of the official exchange rate before converting their holiday currency, while nearly half (45%) simply do not know the best way to get a good deal on their travel money.
· How to get the best deal on your travel money https://www.moneywise.co.uk/household-finances/holidays/how-to-get-the-best-deal-your-travel-money
‘Foreign currency is a minefield’
Don Clark, founder of Travel Money Club, comments: “Foreign currency is a minefield for holidaymakers if they don’t know what to look out for.
“Familiarising yourself with the current conversion rates and reading the small print on charges and commissions will prevent unexpected surprises when buying foreign currency. Our study revealed that 33% of holidaymakers don’t know whether it’s better to pay in local currency or sterling when paying on card, which can lead to paying far more for food, drinks and souvenirs than expected.”