Rarely has the nation been as fixated on the performance of the pound as we have been over the last 3 years of the Brexit rollercoaster. Whether you’re a financial expert or just looking to save a few pounds, nobody can be certain about what the future holds for the pound which is why being prepared for your upcoming holidays and understanding how best to manage your travel money is more important than ever.
At FairFX, we offer currency cards which make it so much easier to plan ahead for your holiday spending money as it allows you to load currency when the rates are in your favour. For example, if you had purchased £1,100 worth of euros – the average cash amount for holidaymakers – when the pound was at its strongest against the euro this year, you would’ve got an extra €123 compared to those who bought it when it was at its weakest.
Astonishingly, our research found that Brits on average still have 12 days of work holiday left to take this year. With Christmas on the horizon and the heating going back on, making your money go further is on everyone’s minds, so we’ve gathered a few top tips to help you make the most of those last few days off.
1 – Go further to get more
We’ve found a number of destinations where Brits can get more from their leftover holiday – and budget – by travelling to destinations where the pound is performing well.
For example, Argentina offers holidaymakers the chance to get more for their money, since the pound has improved by 38% compared to this time last year – meaning you’d get an extra £136 of local currency for every £500 exchanged.
2 – Avoid airport exchanges
Notorious for offering some of the worst exchange rates around, our research found that the average exchange rate offered at airports was 17% less than the official market rate, with some airports offering rates as much as 26% less.
Through FairFX you can order your travel cash at market beating rates and have it delivered to your desk in the city the same day.
3 – Always pay in the local currency
Remember to always pay in the local currency and never pay in pounds when abroad. If you select pounds the merchant is able to define the exchange rate used to convert the transaction from the local currency back into sterling. This profit-generating scheme is known as Dynamic Currency Conversion (DCC).
As of 12th April 2019, Mastercard changed their rules for prepaid cards, like FairFX’s, which now means payment terminals abroad are not allowed to offer customers the option to pay in sterling, to protect customers from DCC.