British travellers could be stung with a hefty 20% charge when purchasing foreign currency at airports this summer, according to financial experts. With holiday season in full swing, many tourists are unaware of the hidden fees that can drastically reduce their spending power abroad.
The Airport Exchange Rate Trap
Currency exchange bureaus at major UK airports have been accused of offering rates up to 20% worse than high street providers. This means that for every £500 exchanged, holidaymakers could lose £100 compared to better deals available elsewhere.
Why Airports Charge More
Financial analysts point to several factors behind the inflated rates:
- Convenience premium: Travellers often leave currency exchange to the last minute
- Limited competition: Fewer providers means less incentive to offer competitive rates
- Higher overheads: Airport rental costs are passed on to customers
How to Get Better Rates
Money-saving experts recommend several alternatives to airport exchanges:
- Pre-order currency online for collection or delivery
- Use specialist travel money cards with competitive rates
- Withdraw local currency from ATMs at your destination
- Compare rates using financial comparison websites
The Financial Conduct Authority advises travellers to shop around and be wary of dynamic currency conversion when using cards abroad. With some planning, holidaymakers can avoid unnecessary charges and make their travel money go further.
