Are summer holidays a financial washout?

The Great British summer get away is looking in danger. Credit crunched families planning to escape to sunnier climes will have to battle high inflation, the spiralling cost of living, a weak Pound against the Euro, and extortionate airport currency exchange rates - all before they even step foot on the plane.

It is little wonder nearly three in five Brits (57 per cent) have been forced to slash how much they pay out overall on their holidays, or at the very least reduce their expenditure while abroad over the year ahead, according to research from pre-paid currency card provider FairFX.com.

Nearly 10% admitted the credit crunch and fear of recession meant they would have to cut how much they will spend on holiday. Also, more than half (55 per cent) felt forced to curb foreign expenditure because the cost of living is too much for them and outgoings have increased drastically.

Stephen Heath, Chief Executive of FairFX.com, said: "As the credit crunch continues to bite, and the cost of living spirals upwards, Brits have been forced to slash their holiday spending. Understandably, basic housekeeping costs are a bigger priority for families, but many people will be disappointed to have to cut back just when they could do with a little sun and relaxation."

And already hard-up Brits are being fleeced when it comes to getting their foreign cash from the airport. Holidaymakers flying from Liverpool, Leeds, City, Bristol or Birmingham airports could be paying well over the odds for their spending money as these airports are the most expensive UK departure points for buying foreign currency at the moment.

Stephen added: "Holidaymakers could be paying as much as 11 per cent more for foreign currency if they leave it until they get to the airport compared to organising beforehand.

"Brits who need to stretch their holiday money as far as possible due to the high cost of living and continued credit squeeze should think about using a pre-paid currency card. For example, they would be able to get seven to 11 per cent more for their Pound using a FairFX.com card compared to waiting and buying their foreign cash at the airport."