Tourists overspend on their holiday budget by more than £100
The typical tourist tends to overspend their holiday budget by more than £100 per trip, highlighting surprise charges as the biggest contributor.
A poll of 2,000 adults who travel abroad found among the most common surprise charges are currency exchange fees and data roaming. Despite 53 per cent saying they set a strict limit before going away, more than four in ten (43 per cent) blame unexpected hidden charges for breaking the budget.
To combat the sneaky fees, seven in 10 (70 per cent) said they primarily pay with cash when they are abroad and 44 per cent opt to use their debit card.
Kat Robinson, head of everyday banking at The Co-operative Bank, which conducted the research as part of its announcement to scrap foreign exchange fees on debit card spending overseas, said: “Spending abroad should be straightforward, but extra card fees can quickly catch people out.”
The study also found that 34 per cent said they struggle to understand exchange fees. Typically, 48 per cent will choose to pay in the local currency – the more cost-effective way - when using their card abroad at a card machine or ATM, while one in eight (13 per cent) risks being hit by higher charges simply by selecting the pound option.
Even though the OnePoll.com study found the majority of holidaymakers (91 per cent) check exchange rates, one in three people said they’re unsure or didn’t know that paying in pounds, rather than in the local currency, would be a more expensive option.
To help travellers avoid unnecessary fees this summer, The Co-operative Bank is removing its 2.75 per cent foreign transaction fee on debit card spending abroad across all its personal current accounts, allowing customers to spend overseas as they would at home without worrying about extra costs.
With millions of Brits heading abroad each year, the change is designed to help minimise unexpected charges and better manage holiday budgets.
Kat Robinson added: “By removing foreign transaction fees, we’re making it more affordable for customers to use their debit card overseas and make the most of their money, whether they’re on a family holiday, a city break or exploring somewhere new.
“But remember, if given the option when spending abroad, always pay in the local currency. Paying in pounds might feel more familiar, but it could mean being hit with extra currency conversion charges from the retailer - a hidden cost that often only becomes clear on returning home. “