Stronger pound gives Brits 776 million more in Europe

UK travellers are enjoying a budget boom as sterling recovers against the euro.

Travel Insurance News - 05/08/2010

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The British pound has been under heavy pressure in recent years. Both travellers and ex-pats from the UK have seen their available spending money steadily decrease. Recently, however, the pound has staged a recovery against the euro, giving a much-needed boost to Brits traveling in the Eurozone.

A recent study, however, finds that many Brits risk losing the benefits of the stronger pound by failing to ensure they get the best exchange rate when they convert their pounds to euros. Research conducted by Foreign Currency Direct shows that 13.9 million Brits will be on holidays in the Eurozone during the summer. They are expected to spend some £702 each in shops, restaurants and bars. Thanks to the stronger pound, that £702 is worth €871, €56 more than a year ago.

However, as the study shows, some two million British tourists could squander this handy extra buying power by getting their euros through cash machines while on holiday and getting hit with multiple charges. Nearly 400,000 holidaymakers said they were planning to get their euros at the airport. Airport exchange bureaux typically offer the worst combination of exchange rates and commission fees. More than half of holidaymakers said they would buy their euros on the high street. Unfortunately, the rates of exchange offered by banks in the high street and specialist currency exchange providers can vary as much as six per cent, so plenty of Brits could still lose out.

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