Holiday Currency Exchange – Mystery Shop Results
- By admin --
- 04 Sep 2012 --
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At Money Saver Spain we’ve always advocated not leaving your currency requirements until the last minute at the airport. In this report by Financial Journalist Suzi Dixon, you can see just how much money travellers are missing out on.
Brits flying to and from Spain are being warned against leaving currency exchange to the last minute. New research found travellers can save as much as £50 per £500 worth of travel money by comparing rates and ordering online.
Travel money comparison site MyTravelMoney.co.uk has unveiled the results of a mystery shop to uncover the hefty profit margins applied by airport suppliers on holiday money purchases.
The mystery shopping survey between airport and leading online suppliers was compiled earlier this month and found that as much as 10 per cent is being wiped off the value of travel money purchases.
Thomas Cook at Manchester Airport was the worst culprit offering just 1.120 Euros to the Pound, despite the real exchange rate at the time of the mystery shop being 1.2492. £500 would give you just 557.50 euros when changed at this bureau when, by comparison, Moneycorp online offers 623.50 euros for £500 on the same day.
MyTravelMoney.co.uk compares currency rates and highlights services that offer next-day home delivery – so even if your trip is less than a week away, it’s not too late to save. Furthermore, if you leave it ultra late, i.e. the night before, it is still worthwhile buying online via a major supplier such as Travelex or Moneycorp and pick up at the airport. The rates will be vastly superior compared to walking up at an airport bureau, and takes no time at all to complete the booking process.
The website team also warn that special offers, such as zero per cent commission, are largely irrelevant.
MyTravelMoney.co.uk Managing Director Daniel Abrahams said: “Zero per cent commission slogans are hiding where the true profit margin on holiday money purchases are applied.
“Advertising campaigns wrongly hide the two ways currency suppliers make money: Firstly, there can be a fixed transaction fee. Secondly and most importantly, currency companies profit via the margin imposed on the exchange rate.
“By claiming to offer zero per cent commission, suppliers portray a false impression that travellers are getting the most bang for their bucks and that the supplier is exchanging their currency free of charge.”
The best way to make sure you get a good deal is to familiarise yourself with the interbank exchange rate and shop around for the lowest margin.
Daniel explained: “Buying travel money online will almost always be cheaper. Travellers can save a significant amount of money through superior exchange rates because online suppliers don’t have the bricks and mortar bills to pay. They can, therefore, pass savings onto the customer.”
Suzi Dixon is a freelance travel and finance journalist, and is a brand ambassador for www.mytravelmoney.co.uk
