Holidaymakers warned over airport exchange rates

Rip off rates: Holidaymakers warned over airport exchange rates

As families plan their winter holidays, travellers are warned to watch out for rip off currency rates

Families plan their winter holidays they are being warned they risk being short-changed at airport bureau de change desks offering poor exchange rates.

Investigations by travel money specialists FairFX have consistently found that exchange rates on offer at airport currency desks across the UK are significantly worse meaning travellers who leave getting their currency to the last minute at the airport will get less for their money.

When travellers were last able to take a half-term holiday restriction free in 2019, FairFX found that on average airport currency exchange rates were 16% lower than the market rate. Meaning for every £500 exchanged at an airport, consumers got £78 less for their money.*

The worst rate recorded around half term was at Stansted airport, where travellers were offered exchange rates 30% lower than the market rate, losing them a staggering £149 from their holiday spending money for every £500 exchanged.**

FairFX is warning holidaymakers not to fall into the trap of rip off airport exchange rates and to make sure they get the most for their travel money.

Travellers prevented from accessing airport rates in advance

FairFX contacted 19 airport currency desks across the UK, including Heathrow, Stansted, and Manchester airport, but were prevented from obtaining their exchange rates with providers refusing to give rates over the phone.

As many people head off on holiday for the first time in 18 months, FairFX is urging travellers to top up prepaid currency cards, where they can get the best rates and not fall into the trap of last-minute rip off airport rates where they’re at the mercy of the rate offered at that time.

Ian Strafford-Taylor, CEO of FairFX, commented: “Amid the excitement of what will, for many families, be the first holiday abroad since the pandemic began, it might be easy to forget to sort your currency in advance. But leaving it to the last-minute leaves passengers vulnerable to the extortionate rates on offer at airport currency desks.”

“We all expect to pay a little more for convenience, but FairFX’s mystery shopping of airport exchange desks across the UK over the past four years has found that leaving exchanging your currency til the airport is the worst thing travellers can do.

“The safest way to guarantee getting more bang for your buck is to plan ahead and avoid changing currency at airport exchange desks altogether.”

FairFX’s top tips for making the most of your holiday money 

1. Track currency: Keep a close eye on currency movements to help you buy at the optimum time. Set up a currency tracker such as the FairFX rate alert which will notify you when rates are on the rise, so you can take advantage.

2. Lock-in rates: If you know you’re going to be travelling, make sure you plan ahead. Load a prepaid currency card ahead of time to lock in rates and protect yourself from any potential future exchange rate fluctuations. If you’re happy with the current rate on offer, buy your currency now to guarantee that rate for your holiday.

3. Buy wisely: Don’t leave changing your travel money until the last minute. Exchange rates at airports can be up to 30% more expensive meaning you could lose over nearly £150 of cash for every £500 you change.

4. Cards: Debit and credit cards are good backups but beware of ATM and transaction fees as well as what exchange rate you’ll be forced to use. Instead, use a specialist currency card or a card designed for overseas spending like a FairFX Currency Card which is free to use in shops and restaurants.

5. Always use local currency: If you have the option of paying – or withdrawing cash – in pounds rather than the local currency, always say no. This allows the other party to decide the exchange rate, a process known as Dynamic Currency Conversion, and it’s unlikely the rate they decide on will be in your favour. Investigations from FairFX found that unsuspecting holidaymakers collectively pay out £490m in currency conversion fees.