Research from the Post Office reveals that UK holiday makers are particularly savvy when it comes to getting the most for their holiday money. It also suggests that Bulgaria it a top choice for cost-conscious tourists and that despite using the stronger euro, Spain is still a popular destination

The findings, which are part of the Post Office’s Holiday Cost Barometer, show that almost half of UK tourists are looking for ways to reduce their holiday costs and get more for their travel money. And the measures they take include eating out less, buying fewer drinks, visiting fewer attractions and doing less sightseeing.

What’s more, the performance of the pound against other world currencies is likely to have a big impact upon future holiday planning. The euro remains volatile on a daily basis, which means that non-eurozone countries are attracting attention because the pound goes further. The Post Office cite the example of Bulgaria, where an average bottle of lager costs only 98 pence and a meal out can be still bought for a reasonable amount of money.

One country holding up well within the eurozone is Spain, which was highlighted by the Post Office as still being able to offer the tourist value for money. Spain came second in the annual foreign currency holiday costs survey. The Post Office research showed that a basket of ten essential holiday items, including sun cream, drinks and meals out, set tourists back just £53.51 of their travel money.

But many of the other countries within the eurozone, including France, Italy and Portugal, were suffering because of the fluctuating euro which not only had impacted upon holidays for the season just passed, but were also effecting future holiday planning for the next season.

A Post Office spokesperson Said:
“Our research revealed that some UK tourists are thinking more carefully about buying foreign currency in advance when rates are better – but the amount lost by leaving it late still adds up to a tremendous waste of hard-earned money. Families who want to stick to a budget should consider putting their cash on a prepaid card, so that they can track their expenditure.”

Guest Article by Neil Camp

The recession has claimed another victim with passengers spending less money in the departure lounge than before.

Research from Santander Cards reveals that the amount that UK holidaymakers spent in airport departure lounges in the last 12 months has fallen to £378 million, down from £1 billion in September 2007.The same research also showed that holidaymakers are holding onto more currency when they return, leaving it for the next break.

For those regular travellers, it is simply more economical, given the weak pound, for travellers to keep hold of their money for their next trip, avoiding a poor exchange rate and expensive handling costs.

The research goes on to reveal that whilst the number of people who indulge in last minute spending at the airport is mostly unchanged at 35%, compared to 36% in September 2007, the average amount frittered away at the airport has dropped from £65 to £24 per spender.

And age makes a difference as well, with people aged 18 to 34 more likely to spend leftover foreign currency in the airport, with 81% of those holidaying abroad admitting to currency dumping, compared to 68% of those over 55.

Callum Gibson, Director at Santander Cards, says: “With holidaymakers trying to make their money go further this year, it’s not surprising that non-essential spending at the airport has fallen dramatically in the last 12 months. Britons are resisting the lure of departure lounge shops and either sticking to their holiday budget or holding onto any leftover foreign currency for their next trip.”

And different product types were also being effected in different ways. The airport staple of perfumes, make-up and grooming products have been worse hit, with the number of returning holidaymakers buying perfume or aftershave at the airport falling from 31% to 20%.

But certain areas did better, with food and drink leading the way with a significant rise from 58% to 70%. Books also did well, rising from 13% to 17%; toiletries also showed an increase, from 8% to 11%; and, clothes also notched up a slight gain from 4% to 5%.

Which perhaps shows that passengers are limiting themselves to the necessities in life and steering clear of the luxury items.

Guest Article by Neil Camp

The Post Office has launched new international bank to bank foreign exchange rate money transfers offering 0% commission, competitive rates, no hidden fees and the ability to fix foreign exchange rates for up to a year.

The new Post Office Overseas Property Money Transfer foreign exchange service enables customers to make international bank to bank money transfers. It offers competitive foreign currency exchange rates, with 0% commission and no hidden charges. The service reimburses customers for any charges that the destination bank may impose and anyone needing to transfer money to an overseas bank account can benefit from the online service.

Sarah Munro, Post Office head of money transfers, said: “Until now, many users of international bank to bank money transfer services have found it to be an expensive business, with limited options for small transfers in foreign currency. They have often been unable to capitalise on the great foreign exchange rates offered by foreign currency specialists because they weren’t buying in bulk. And they were also at the mercy of volatile foreign currency markets, making it harder to get the most from their money.

“The Post Office Overseas Property Money Transfer service offers customers the ability to fix at a competitive foreign exchange rate, giving them peace of mind for up to a year, which is a real advantage in current markets. We calculate that with 0% commission and our competitive foreign exchange rates we will be saving customers a serious amount of money if they’ve just sold their house or are paying a deposit on a new property.”

The Post Office is already a major player in the foreign currency exchange sector, boasting a service online, or through its branches. Called Travel Money, it claims to be the best foreign exchange provider, offering 0% commission, over 70 foreign currencies, home delivery or collect in branch, and, free home delivery on orders over £500.

And for two years, the Post Office has been voted the best foreign exchange company at the British Travel Awards (BTA).

The Post Office is also a provider of the Travel Money Card (TMC) which is one of the easiest and safest ways of taking your money abroad. There’s no purchase fee and it can be used in millions of shops and restaurants worldwide.

Buy a euro, US Dollar, or Sterling TMC, and benefit, say the Post Office, from:

• convenience – unlike travellers cheques you don’t need ID to make a purchase or withdraw money;
• flexibility – withdraw cash 24/7 from millions of ATM machines worldwide;
• security – completely separate from your bank account, helping to protect your identity;
• control – load the card from £50 – £2,500 and top up by phone, or in a branch;
• immediate help – if your card is lost or stolen your money is protected; a replacement card4 can be requested 24/7.

Guest Article by Neil Camp