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Brits overpaying for holiday cash

28 May 2009 07:49

Brits overpaying for holiday cash

Research has shown only a minority of travel insurance customers are choosing the most cost-effective way of buying their holiday money.

Almost all UK travel insurance customers are overpaying when purchasing their foreign currency, it has been found.

While nearly seven in ten (69 per cent) of Brits believe "every penny counts" when it comes to buying money for holidaying abroad, two per cent use the most cost-effective method, according to research from FairFX.

Around 98 people in every hundred do not use pre-paid currency cards, which the exchange company states it is the cheapest method of spending abroad.

Two-thirds (66 per cent) prefer to spend cash bought in the UK, while 29 per cent rely on notes from a foreign ATM, the study found.

Meanwhile, 21 per cent are paying a premium by using their credit cards while on holiday.

"There seems to be quite a large divide between consumers' desires to make the most of their cash, and the reality of their foreign spending habits," said FairFX chief executive Stephen Heath.

Meanwhile, the Air Transport Users Council recently suggested the number of bags lost by airlines is not good enough, suggesting fliers would be wise to invest in travel insurance to make sure they're covered.ADNFCR-1320-ID-19187089-ADNFCR