Brits stay home amid Brexit currency confusion
Continued turmoil around Brexit over a possible no deal is causing widespread confusion over currency and travel plans, as four in 10 (39%) Brits have not left the country to go on holiday in the past year.
New research from foreign exchange provider, International Currency Exchange (ICE), shows that Brexit is forcing us to reconsider our holiday spending, as four in 10 Brits aged 50 and over (40%) said their biggest limitation to taking more holidays was cost.
Amid money worries, those Brits who are travelling abroad are opting for familiarity with a third of baby-boomers returning to the same destination every year and picking trips that are ‘comfortable and familiar’ (30%).
Louis Bridger, Head of UK at ICE, said:
“Every time there has been added Brexit turbulence, it hasn’t been good news for consumers and their travel money. A weaker Pound would, of course, mean more expensive holidays for Brits but our message to travellers is ‘don’t panic’. While being more financially aware of the economy and its impact on your finances is a good thing, you can still enjoy the things you love and get away on holiday abroad so long as you’re savvy with your spending.”
To help ease the financial cost of holidays and make the most of travel money, ICE has launched its new prepaid card, the Clear card, which aims to inspire feelings of freedom and adventure, allowing you to lock in the rate when you top-up which can protect you from any negative shifts in currency.
According to research by KPMG looking at the effects of spending due to Brexit, more than a fifth of British consumers (22%) having avoided “big ticket” purchases due to Brexit-driven uncertainty, with overseas holidays sales the hardest hit.
there isn’t much any of us can do about the value of the pound, Louis
Bridger gives his advice on steps people can take to minimise its impact on your
- Look outside the Eurozone
While the pound has fallen in value against the euro and dollar, there are other currencies where the pound remains strong or has even strengthened. To get the most value from your Pounds, we’d recommend choosing a holiday destination with a good exchange rate, which might mean looking outside the Eurozone. Destinations where Brits can enjoy excellent value include Turkey, South Africa, Poland, Romania and Morocco.
- Plan ahead
The best way to guard against any negative fallout from Brexit is by planning ahead. Given the volatility of the market, it’s a good idea to prepare for a further drop in GBP by ordering your money sooner rather than later. As a general rule, you’ll get a much better rate when you order your travel money online, rather than waiting until you get to the airport.
- Consider a prepaid card
If you’re worried about exchange rates going up and down amid Brexit uncertainty, you can load your money onto a prepaid travel money card and lock in your rate. Prepaid cards, like the ICE Clear card, offer competitive exchange rates, and also protect you from being charged transaction fees abroad as you would with your debit or credit card.