Holidaymakers heading abroad following travel’s restart are obtaining more for their UK cash than a year ago, the Post Office Holiday Money Index has revealed.
The Post Office’s first Holiday Money Index of the year shows sterling is stronger year on year against 20 currencies, covering all the destinations currently on the government’s Covid-safe travel corridors list.
The index notes travellers are buying more currency so far this summer, with the average transaction up 22% year-on-year at £423.
It reveals sterling is stronger now than when the lockdown started in March against 16 of the currencies but has weakened against 13 of them since February when the pound was at its highest value to date this year.
But Post Office Travel Money reported: “Sterling is now worth more against all major holiday currencies than in August 2019.”
The sharpest gain of almost 24% is for visitors to Turkey who could have £97 more to spend on a £500 transaction.
Visitors to euro zone destinations will have almost £14 more cash than last August, although sterling has fallen by almost 8% against the euro since February.
UK travellers beyond Europe have few destinations to head for aside from the Caribbean, but with Caribbean currencies pegged to the US dollar which has fallen against sterling they will find their pounds go further.
The index reports: “In Jamaica, sterling is worth 18% more than last August which means a gain of £76 in Jamaican dollars on a £500 transaction.”
UK visitors to Antigua, St Lucia or Tobago can expect about £41 extra on a £500 exchange.
The index found reported a steady rise in the percentage of contactless transactions using the Post Office Travel Money Card, up from an average of 50% prior to lockdown to 64% now.
Sales of euros on the pre-paid card were up 10-fold in July compared with the pre-lockdown level.
Post Office head of Travel Money Nick Boden said: “It’s great that Britons travelling abroad this summer will find the pound in their pocket stretches further than a year ago.”