UK holidaymakers will enjoy lower costs in two out of five (40%) popular destinations in 2018, according to a new study.
The fall is driven by sterling’s year-on-year gains against 70% of the top 40 holiday currencies, according to Post Office Travel Money.
The pound has strengthened by 9.4% against the US dollar, 10.3% against the Kenyan shilling and 17.3% against the Turkish lira compared with January 2017.
Long haul destinations offer the largest decrease in prices as the stronger pound combines with lower charges in shops, restaurants and bars.
Prices have dropped 36% in Dubai (Jumeirah Beach), 31% in St Lucia (Rodney Bay) and 27% in New Zealand (Auckland).
Japanese capital Tokyo was found to be the second cheapest destination for UK tourists buying eight tourist items such as a meal for two, sun cream and mineral water.
Only Bulgaria’s Sunny Beach resort is cheaper, according to the research.
Portugal’s Algarve is in third place, ahead of Prague in the Czech Republic and Cape Town, South Africa.
Andrew Brown of Post Office Travel Money said: “The squeeze on spending at home means holiday resorts and cities where the pound will stretch further or where local prices are cheap are likely to reap the benefit of increasing visitor numbers in 2018.”
How to get the best exchange rates on your travel money
Wherever you’re heading it makes sense to get the most local crrencyt for your pound as you can.
Here are FairFX ‘s tips on getting the best exchange rate you can:
Track currency: Set up a currency tracker which will alert you to good rates.
Lock-in rates: If you know you’re travelling later this year, plan ahead. Pre-load a prepaid currency card to lock in rates and protect yourself from any potential further decline. If you’re happy with the current rate on offer, buy your currency now to guarantee that rate for your future holiday.
Buy wisely: Don’t leave changing your travel money until the last minute. Exchange rates at airports can be over 10% more expensive meaning you could lose £100 of cash for every £1,000 you change.
Stay alert: Once you’re abroad, beware of the double exchange rate dupe. If you let the seller in a shop or restaurant covert the price back into pounds, they will choose their own exchange rate and you’re more likely to be on the less favourable end of the dea
Cards: Debit and credit cards are good backups but beware of ATM and transaction fees as well as what exchange rate you’ll be forced to use. Instead, use a specialist currency card or a card designed for overseas spending
Always use local currency: If you have the option of paying – or withdrawing cash – in pounds rather than the local currency, always say no. This allows the other party to decide the exchange rate, a process known as Dynamic Currency Conversion, and it’s unlikely the rate will be in your favour.
Different money habits: Check out any travel money anomalies before you travel. In America, for example, you definitely need to remember your PIN – outlets are migrating from swipe & sign to chip & pin so don’t get caught out.