IF you’re planning a holiday in Europe this summer you might want to get yourself some Euros before the Pound plummets even lower, money experts have warned.
An already devalued pound crashed to an eight-week low after Parliament passed the Brexit Brill which will trigger Article 50 and take Britain out of the EU.
Foreign exchange provider Travelex earlier this month revealed the average cost of a family holiday abroad to Europe will cost almost a fifth more this year than it did in 2016.
With the average family holiday costing £2,333 in 2016, a family of four can expect to pay a whopping £2,851 to travel abroad to Europe this summer – an 18.2% rise.
So what should I do if I’m going to Spain, Italy, Greece or anywhere in the EU this summer?
1) Opt for more than one payment method
TravelSupermarket spokeswoman Emma Coulthurst told Mirror Money: “The best thing is to buy when you feel comfortable to do so, and follow rules to make sure you get the most for your cash.
“Carry a market-leading credit or debit card for use overseas, a pre-paid card and also some cash. Don’t rely on just one form of payment.
“Compare online to get the best rates – find the place where you have to hand over as little sterling in exchange as possible.”
MoneySavingExpert has a handy Travel Money Max tool to help dig out the best rates. You can try it out here.
An online comparison by TravelSupermarket found a holidaymaker could save £29.37 by buying €1,000 with the best-buy company versus the most expensive – so a couple of minutes comparing rates is always a good idea.
2) Purchase a buyback guarantee
Whether you choose to exchange early or nearer the time, a ‘buyback guarantee’ will cover you should the rates fall even further, while you’re away.
This gives you the option to return any remaining currency back into sterling, at the same rate you initially paid for.
Ask for this at the checkout before exchanging your money. You may have to pay more for the service, but, it means if the currency worsens while you’re abroad, you won’t lose out any more.
As Moneycorp retail director Pauline Maguire explained: “This means that if the rate has fallen against your favour on your return, you can still swap any remaining currency back at the same rate you bought it.”
3) Set up a tracker - and cash in on the spike
If it’s the risk factor that’s worrying you, keep an eye on rates in the run up to your holiday, and when the pound does start to improve (even just slightly) cash in on it.
Order your currency online, and you’ll also be able to reverse this decision if the rate gets even better in the run up to your holiday (more on this later).
4) Don’t buy currency at the airport
Whether you decide to buy before Article 50 takes effect or last minute, the worst decision you can possibly make is to buy at the airport.
That’s because airport concessions offer some of the highest rates around – and you could end up flushing half of your holiday savings down the drain.
FairFX CEO Ian Strafford-Taylor told Mirror Money: “Don’t leave changing money to the last minute. You’ll miss out on better rates and end up paying as much as 19% more at the airport meaning you could lose £150 for every £1,000 exchanged.”
5) You CAN change your mind
Firms such as Travelex give you the option to reserve a rate – for up to 30-days – when you order online. You can also cancel up to 24-hours before you leave – enabling you to get currency at a better rate.
This means you can buy your currency now for collection after Article 50 is triggered.
If the value of the pound improves, you can cancel the order to get your money back and buy again when the rate is more favourable down the line.
If the pound drops, you can collect your currency at the exchange rate that you locked in when you made your order.