A survey of 2,000 UK adults who travel abroad has found that hidden fees add an average of more than £100 to each holiday. The most common surprise charges are currency exchange fees and data roaming, with 43% of respondents blaming unexpected costs for breaking their budget.
Budget busters: Currency and roaming charges
Despite 53% of holidaymakers setting a strict spending limit before departure, 43% said hidden charges caused them to exceed their budget. The research, conducted by The Co-operative Bank, also found that 34% of respondents find exchange fees difficult to understand.
To avoid sneaky fees, 70% of travellers primarily use cash abroad, while 44% opt for debit cards. However, card use can still incur charges: 48% choose to pay in local currency at overseas ATMs, which is the most cost-effective method, but 13% select the pound sterling option, risking higher charges.
Bank scraps foreign transaction fees
Kat Robinson, head of everyday banking at The Co-operative Bank, said: “Spending abroad should be straightforward, but extra card fees can quickly catch people out.” The bank has announced it will scrap its 2.75% foreign transaction fee on debit card spending overseas for all personal current accounts, aiming to help customers avoid unexpected costs.
Robinson added: “By removing foreign transaction fees, we're making it more affordable for customers to use their debit card overseas and make the most of their money, whether they're on a family holiday, a city break or exploring somewhere new.” She also advised: “If given the option when spending abroad, always pay in the local currency. Paying in pounds might feel more familiar, but it could mean being hit with extra currency conversion charges from the retailer.”
Impact on holiday budgets
With millions of Britons travelling abroad each year, the change is designed to help reduce unexpected charges and give travellers better control over holiday spending. The typical overspend of over £100 per trip highlights the need for transparency in foreign transaction costs.
