Tourists shunning credit cards
Holidaymakers afraid of overspending on plastic
Published:
HOLIDAYMAKERS are expected to take an extra £1billion abroad with them this year as they shun credit cards for fear of overspending.
Foreign-exchange group Travelex.co.uk said Britons were taking an average of nearly £200 more with them on holiday this year compared with 2007.
It said feedback from customers suggested the surge was because of people worrying about overspending on their plastic.
Some six out of 10 people said they had overspent on credit cards while on holiday in the past and thought they would be better able to stay within their budget if they took cash. About 28% also said they hoped to cut the cost of their holiday by spending cash rather than using their plastic, while others were worried about the fees associated with using cards abroad.
Anthony Hudson, UK retail director at Travelex, said, “It’s interesting to see this change in behaviour among British holidaymakers.
“The British public are still going abroad for their holidays but people do seem to be managing their money much more carefully by purchasing more of their currency before they depart.
“This allows holidaymakers to budget and avoid overspending as well as avoiding transactions fees levied by the card providers.”
Meanwhile, a travel agent has been named as the cheapest place to convert foreign currency, offering consumers better value than banks and the Post Office, according to a leading consumer group.
Which? said First Choice offered the best deal for holidaymakers looking to buy 500 US dollars, charging a total of £260.42.
Marks & Spencer came in second place, charging £260.69 for the same sum, followed by HSBC at £261.10.
At the other end of the scale, Thomas Cook was found to be the most expensive place to change money, with consumers paying £274.73 for $500, £14.31 more than First Choice, despite it also offering commission-free currency.
Fellow travel agent Going Places came second last, charging £267.56, while the Post Office charged £265.59.
Which? said that while many companies offered commission-free currency exchange, consumers could still end up getting a bad deal because of poor exchange rates and other fees.
It added that it was generally cheaper for people to collect their currency themselves to avoid delivery charges, although some companies would only deliver it.
