Brits wasting up to £2.4 billion on left over holiday money

Britain is a nation potentially missing out on lucrative currency exchange on return from a holiday, according to an independent survey commissioned by the global leader in banknote trading and travel money technology solutions, IMX.

Nearly half of UK adults (48%) will leave their left over holiday money in their drawer until they visit that country again. With the majority of them (52%) bringing home an average of £35 worth of foreign currency, there is a danger the money will lose value due to exchange rate fluctuations or that they will never return to the same country and be out of pocket.

The survey showed that only a third (33%) of Brits change their left over money back into UK currency on return from a break and a mere 5% purchase a holiday money buy-back option when purchasing foreign exchange in the UK.

Planning
It seems that exchange rates do affect how Britons decide on where to go on holiday, but not as much as you might expect. Despite the recession biting, only 1 in 10 (9%) take currency exchange rates into account when planning a holiday. This varies by region. Over half (64%) of those in the East of England take into account the currency exchange rates when planning a holiday although they don’t let it affect their final decision.

Three fifths of UK holidaymakers buy their currency before going abroad as they believe planning ahead is cheaper than buying currency later. Scots are the most likely to buy currency in the UK due to the potential cost savings (68% compared to national average of 60%). Buying from the Post Office is the most popular way for those in the South of England to get foreign currency for a holiday, with 41% using the service.

Interestingly, men are more likely to plan ahead when it comes to thinking about their foreign currency needs on holiday. They are nearly twice as likely as women to order foreign cash online and have it delivered to their home or workplace.

Purchasing and Spending
The research showed that, for those who left the country without any foreign currency, visiting a cash point once they had arrived at their destination was the most popular method of buying local currency (49%), despite the fact that this costs more. Other methods include visiting an exchange bureau (18%), buying travellers cheques (18%) and purchasing from the local bank (12%).

Age seems to affect how foreign currency is obtained and what methods of payment are used to buy goods once on holiday. The younger you are the less likely you are to buy foreign currency from a bank. Older travellers, those aged over 45, are more likely to use credit cards (49%) for large purchases abroad than those under 24 years (18%), who opt for cash (74%) and debit cards (30%) for such payments.

“In these difficult financial times, families and individuals still want to have a holiday but many worry about the impact on their pocket. With careful planning and a better awareness of the costs involved in buying foreign currency, we can all get more from our money when going abroad,” said Julia Freeman of IMX Software. “Customers should always endeavour to plan as far ahead as possible and shop around for the best rates to make sure they get more from their money when going abroad. The results of our survey should also provide a better insight into customer habits for all those buying and selling foreign currency.”

IMX commissioned YouGov in October 2009 to survey 2000 consumers on their habits relating to international currency when travelling abroad.