Planning a trip? Here's where to spend your travel cash

17 May 2012 16:26:38

Sterling has made strong gains against many currencies this year.

Anyone planning an overseas holiday this summer is bound to be heartened by the news that they're likely to get more travel cash for their sterling than last year. Research by Post Office Travel Money shows that 80% of currencies are now performing worse against sterling than in 2011. However, certain destinations will give you more travel cash than others, and the way you obtain your spending money will also help to determine your buying power.

UK tourists enjoy up to 24.5% more travel cash
If you're planning a trip this year, why not make the most of the strong sterling by heading to a destination where the local currency has slumped against the UK pound? A fall of 24.5% for the Brazilian real against the pound means that British holidaymakers can enjoy much more spending money than this time last year.

Another long-haul destination that could be at the top of many people's wish-lists is Mexico, as the new peso has fallen by 15.7% against sterling since May 2011. This means that a family changing £500 into new pesos will have the equivalent of £67.68 extra spending money, compared with last year.

Eurozone also a safe bet
For those of you who want somewhere a little closer to home, Europe offers plenty of choice. Sterling has soared to record levels against the euro since 2008, providing extra travel cash throughout the eurozone. Converting £500 into euros should give you £47.41 more spending money than it would have done last year. But sterling has also made gains against other European currencies, meaning a city break in eastern Europe could be on the cards for many.

Andrew Brown, head of travel money at the Post Office, says there are "very few places where the pound is not packing a stronger punch this year". For those who are undecided about their holiday plans, Mr Brown reveals: "Our advice is for people to keep a close eye on exchange rates for all the destinations they are considering so they can judge where they will get the best return on their money."

Consider a prepaid card for travel spending
Once you've chosen your destination, it may be worth keeping tabs on the relevant exchange rate and buying your travel cash whenever it looks good, even if your holiday is still some way off.

An increasing number of people are turning to travel prepaid cards for this purpose, as they can load the card with their chosen currency whenever sterling looks strong and use it for all of their holiday spending. These cards tend to benefit from favourable exchange rates and provide advantages over cash when it comes to security, as they are pin-protected and any stolen funds can be reclaimed from the provider.

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