Understanding travel money exchange rates

Business

Firms including Travel Money Rates play a vital role in helping travellers to evaluate travel money exchange rates and to make holiday money comparisons before they act.

The rates offered vary from outlet to outlet, you’ll quickly learn that airports normally use travel money exchange rates which mean that the customer gets less for their money. They know that you can’t do holiday money comparisons when your flight is due to leave in two hours time.

When you can compare and make reasoned currency choices, you have the power to secure yourself a great deal which can optimise yourspending money, more than you possibly realise.

When the pound is strong this is excellent news for travellers. At the moment, the US Dollar is floundering so this is perfect for holidaymakers to the USA. You get more bang for your buck.

Supply and demand affects the exchange rates on offer; where there is greater demand for sterling, its value increases. This strength can come from a rise in interest rates or inflation lessening.

UK travel money exchange rates are normally termed as floating exchange rates because the value of the currency is established via market forces rather than government intervention. When they take control a fixed exchange rate is enforced. This is rare.

Use a holiday money comparison website like Travel Money Rates  (http://www.travelmoneyrates.com), it helps to quickly establish where the best rates and deals are and then you order through the site. Everything you need to know is available in one place. Simple and convenient, you select the best rate and deal based on the choice of delivery or collection and that’s it. No trailing up and down the high street or clicking on a plethora of rival travel money providers websites.

On 26th July 2017 a check on Travel Money Rates holiday money comparison website of who could offer the best rates and delivery service for £500 Euros resulted in the following data:

Travel money exchange rates varied from 1.0685 with free delivery (HSBC) to 1.1047 with free delivery (The Currency Club.) This may seem like an insignificant gap but

  • The Currency Club transaction equated to €552.35.
  • The HSBC transaction equated to €534.24.

Think what you could spend the extra Euro’s on. Why should it fall in to the retailers’ hands?

Holiday money comparisons for selling your unused currency are hugely important. Airports and banks don’t often represent the best places to secure good deals so don’t rush to convert money back to sterling.

Again, using the Travel Money Rates holiday money comparison tools it became clear that a mistake could prove costly. A few minutes of holiday money comparison saved £10 in this example:

€150 buy back on 26th July…

A rate of 1.1270 to £1 at Currency Online Group was £133.10.

A rate of 1.410 at Ace FX resulted in £131.46.

Leftover Currency’s rate of 1.1646 equated to £128.80.

Natwest’s rate of 1.2187 meant £123.08.

Don’t get caught out. Make the exchange rates and your money work harder for you.