Holiday cash not always on the spot

UK tourists expecting to pick up some of the most popular holiday currencies on the spot could be in for a nasty surprise when they visit high street bureaux de change, according to Post Office Travel Money.

In a survey of 12 best selling currencies, it found that while all were available over the counter immediately at the Post Office, a same-day currency service was more limited in other high street bureaux and banks.

Euros and US dollars were the only currencies readily available in large amounts while more than 75 per cent of the 10 remaining currencies surveyed needed to be pre-ordered for next day collection.

Although Turkish lira and Egyptian pounds were generally available on demand, it was more difficult to find the East Caribbean dollar. Advance notice was required for the currency at one of the leading high street bureaux, while it had to be pre-ordered at a top travel agency. Used by holidaymakers visiting Antigua and St Lucia, the currency was not stocked at one of the big four banks and nor was the Turkish lira - the Post Office’s third best-seller in 2009.

Holidaymakers heading to the fast-growing eastern European summer sun destinations of Bulgaria and Croatia would also have to plan ahead and pre-order their currency, rather than turn up and buy their travel money on the spot. Only one provider besides the Post Office offered a same-day service.

But while sterling may be staging a minor recovery as exchange rates edge upward, Post Office Travel Money warns adventurous holidaymakers travelling to destinations beyond the eurozone or taking a long haul trip to check the rates offered carefully.

When the Post Office compared rates for best selling currencies covering destinations ranging from Turkey and Croatia to the Caribbean islands of Antigua and St Lucia and mid-haul favourite Egypt, it found widely varying high street and airport rates.

£200 bought 440 Turkish lira at the Post Office but 10 less lira at a high street competitor. Depending where pounds were exchanged, people planning trips to Egypt, one of 2010’s success stories, could expect to receive as much as 7.56 or as little as 7.26 Egyptian pounds for each UK pound. Similarly £1 would buy over eight Danish kroner in some bureaux but only DK 7.32 in one major high street outlet.

Sarah Munro, Post Office Head of Travel Money, said: "People may think that rates offered are all the same, but in fact they vary tremendously depending on the currency. UK tourists who don’t check the rate offered for the currency they need could end up with less money to spend on holiday.

"Worse still, depending where they are travelling, they could find that a trip to the high street is wasted when the currency they need is not available on demand. Buying holiday money is about convenience as well as cost and at the Post Office our larger branches keep stocks of at least 20 of the most frequently purchased currencies for their local area. That may not be the case elsewhere on the high street and consumers will be well advised to check whether the currency they need is available without pre-order before they visit a bureau."

Holidaymakers leaving it to the last minute to buy currency at the airport may find it convenient, but the Post Office survey established that this would be a costly mistake. Comparing its own rates for 12 currencies, the Post Office found that travellers buying currency at the airport would pay up to seven per cent more.

The most marked difference would be felt by UK tourists changing pounds into Croatian kuna (-7.04 per cent), East Caribbean dollar (-6.47 per cent) and Turkish lira (-6.28 per cent). This means that £200 spent at the Post Office would give holidaymakers 121.30 extra Croatian kuna - equivalent to £15.96, 54.20 more EC dollars (£14.97) and 32.21 more Turkish lira (£14.64).

Sarah Munro said: "Leaving it to the last minute to change money at the airport means getting a lower rate and, unless changing higher amounts, paying commission too. Instead buy holiday money at a high street bureau de change like the Post Office, which offers a competitive rate, 0 per cent commission and no hidden extras.

"Tourists should also take enough currency to cover all their needs. Over the past year we have found that the average transaction in our bureaux has not kept pace with the falling value of the pound, which means that people risk paying hefty charges abroad when they have to top up their spending money by using a debit card."

29 best selling currencies are available on demand at 1,600 larger Post Office branches. 2,600 additional branches offer US dollars on demand, while a total of over 8,500 branches stock euros. Alternatively over 70 currencies can be pre-ordered at 11,500 Post Office branches or online at postoffice.co.uk for next day branch or home delivery.