As Value of Holiday Pound Plummets consumers look for new ways to manage their holiday cash

9 Aug, 2016

British holidaymakers are starting to feel the effects of Brexit and weaker exchange rates on their holiday spending according to a survey of summer holidaymakers.

The average holidaymaker heading to the EU is £51 worse off per person, per week, according to the survey undertaken by Prepaid International Forum (PIF), the not-for-profit trade body for the prepaid financial services sector.

This is based on the average UK holidaymaker spending £241 per week while on holiday and exchange rates plummeting 17.5% (from a high of 1.43 to 1.18) since the vote to leave the EU.

This means an average family of four, taking a fortnight’s holiday in the EU, needs an extra £408 to match their spending on the same holiday last year.

As if to rub salt into their wounds, it is ‘Remain’ voters who are hardest hit, according to the survey.  54% of those suffering from weaker exchange rates on foreign summer holidays are ‘Remain’ voters, compared to 46% ‘Leave’ voters.  ‘Remain’ voters also reported spending more while on holiday (£258 per person, per week compared to £221) further increasing their post-Brexit losses.

According to experts, increased holiday spending costs are encouraging travel money providers to look at new ways to help holidaymakers get better deals.

Alastair Graham, spokesperson for PIF, says:

“Holidaymakers have always been subjected to poor exchange rates and extra charges when spending their money abroad.  The recent fluctuations in exchange rates have made them even more aware of such costs and are increasing appetites for alternative solutions.

“Prepaid financial services companies are seeing increased demand from travelers wanting to store travel money at times when rates are favourable, locking in their holiday spending sometimes months ahead of time.

“Using prepaid travel money cards to store currency is a popular way to guarantee the price of holiday spending in advance.