Travel money firms are trapping families jetting off abroad this summer into handing over a collective £720 million in rip-off fees, research has found.
Converting the £27 billion British holidaymakers take abroad every year into foreign currency already secures holiday money companies a hefty £1.1 billion, reveals the Office of Fair Trading.
But sneaky tricks see them pocketing an extra £722 million, meaning that travellers are unwittingly shelling out an extra £40 on every £1,000 spent overseas.
The news will come as an unwelcome surprise to the hundreds of thousands of people going on holiday post-Olympics, as well as the many Brits who are planning a late summer getaway to Europe to take advantage of a weak euro.
Tricks include offering poorer exchange rates to travellers who live outside of London or passengers who travel from cheap-flight airports.
According to consumer group Which?, two in five holidaymakers go to the Post Office to buy travel money – but a spokesman admitted that exchange rates in some cities were worse due to weaker competition.
At the moment, £500 can buy €635, but because costs are higher outside London, many families do not see their money go that far.
In fact, holidaymakers living outside the capital can find themselves with €15 less on the £500 handed over to travel money companies.
Currency firms also routinely slash exchange rates at airports offering cheap flights, such as Luton and Birmingham. Money Mail, which carried out a direct comparison last Friday, discovered that passengers at these smaller airports receive €26 less on every £500.
Justin Modray, of financial advice website CandidMoney.com, said: “There is a queue of companies lining up to fleece travellers.”
The chief executive of currency company FairFX said that the “unscrupulous tactics” employed by leading foreign exchange firms cause travellers to “lose out.”
If you are planning a holiday and are concerned about exchanging money, claiming mis sold ppi (payment protection insurance) could see you obtain an average payout of £2,500 which can help cover the cost.
