Despite concerns about the financial burden and instability of monetary exchange rates, two in three Britons are planning a holiday abroad this year – the highest percentage of the last five years, according to the new Post Office Travel Money report.
The budget is increasing, but concerns remain
66% of British say they will travel abroad this year, up 5% compared to last year. In fact, more than half (54%) have already booked, although 9 out of 10 are concerned about whether they have enough money. To cope with the situation, they intend to increase their budget, as most admit that in their previous excursion, they exceeded the original spending plan by 37% (on average £ 140 more than the £ 377 budget).
It is worth noting that 52% of respondents (compared to just 22% in January) plan to increase this year’s holiday budget in response to rising prices and the previous excess cost.
Trump’s equivalents and duties affect decisions
The vast majority of respondents appear particularly anxious to fluctuate the pound’s exchange rate. 77% reported that exchange rates are a key destination factor, while 78% feared potential increases in prices due to US trade duties.
As a result, 53% of Britons will avoid destinations where they believe duties can increase local prices, while 39% now ruled out the possibility of travel to the US, even though they used to consider it.
Top ‘Value for Money “destinations
The three most popular destinations that the British consider to offer the best quality-price relationship are Spain (41%), Turkey (35%), and Thailand (31%). However, Post Office’s new Exchange Rate Monitor – incorporated for the first time in the annual report – shows that the pound has weakened against the Thai Batt, making Thailand less advantageous. Specifically, in an exchange of £ 500, the British get £ 27.64 less in Batt compared to last year (5.2%).
Which is most advantageous
The picture is reversed for other Asian countries. The pound is 9.2% stronger than the Vietnamese Dong, offering an additional £ 42.01 per £ 500, while gaining 7.1% over the Indonesian rupee, making Bali more affordable with a profit of £ 33 per £ 500.
The most important strengthening of the sterling is recorded against the Turkish pound, which slid 12.9% in the last quarter and 30.2% annually. The British who will choose Turkey this year will get £ 116 more in pounds for the same value (£ 500) than last year, making it the most interesting destination.
Also, the pound has been up 6.6% against the US dollar since last year and 4.9% since March. This implies better exchange rates for destinations that use connected coins, such as Barbados, Antigua, and Dubai.
Payments and traps abroad
Research also reveals problematic habits in payments. Although travelers are recommended to have some cash, 21% were based solely on cards, while 27% exchanged less than £ 100 in foreign exchange. The result: 7% were unable to pay by card in restaurants or stores, 11% charged his account with Dynamic Currency Conversion, paying for pounds instead of local currency.
In addition, 14% made withdrawals on an ATM with bank charges. The younger ones are more prone to such charges: 17% of 25-34 years and 19% of 35-54 years paid supplies.
The solution of prepaid cards
According to Laura Plunkett, head of Post Office’s Travel Money Sector, “the use of cards abroad seems convenient but often is expensive due to supplies.” It recommends the use of prepaid cards, such as the Post Office Travel Money Card, which can be charged at a favorable exchange rate and is not charged with trading charges abroad. The balance can be converted into 22 coins for subsequent trips.
Already, 13% of travelers and one in five aged 55-64 years have adopted this solution.
