Holidaymakers are routinely blowing their travel budgets by more than £100 per trip, with unexpected charges such as currency exchange fees and data roaming costs being the primary culprits, according to new research.
Survey reveals scale of hidden costs
A survey of 2,000 UK adults who holiday overseas found that while 53% claim to set a firm spending limit before going away, more than four in ten (43%) point to unforeseen hidden charges for busting their budget. To tackle these sneaky fees, seven in 10 (70%) revealed they mainly use cash while abroad, with 44% choosing to rely on their debit card.
Kat Robinson, head of everyday banking at The Co-operative Bank, which conducted the research, said: "Spending abroad should be straightforward, but extra card fees can quickly catch people out."
Local currency vs. pound option
Generally, 48% of holidaymakers opt to pay in the local currency – the more economical approach – when using their card abroad at a payment terminal or cash machine. However, one in eight (13%) risk facing steeper charges by choosing the pound sterling option, which often incurs additional currency conversion charges from the retailer.
Robinson added: "Remember, 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 – a hidden cost that often only becomes clear on returning home."
Co-operative Bank scraps foreign transaction fees
To help holidaymakers dodge unnecessary charges this summer, The Co-operative Bank is scrapping its 2.75% foreign transaction fee on debit card purchases abroad across all its personal current accounts. This move enables customers to spend overseas just as they would at home without worrying about additional costs.
With millions of Britons jetting off abroad each year, the move aims to reduce surprise charges and help travellers better control their holiday spending. Kat Robinson commented: "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."
