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Holidaymakers preparing to travel once schools in England break up this week will find the pound better value than a year ago against 75% of 20 currencies, a new study shows.
Sterling is at an eight-year high against the euro, buying 12.6% more – the equivalent of £56 extra on an exchange of £500, according to Post Office Travel Money’s latest Holiday Money Index.
It has also increased in value since April against many long haul currencies, most notably the New Zealand dollar.
The pound has recovered from a March low point against the US dollar but remains around 8% weaker than last July, and this extends to Caribbean and Middle Eastern currencies.
Andrew Brown, of Post Office Travel Money, said: “After a dip in May, sterling has moved steadily up in value over the past month. Its strength against the ailing euro has overshadowed the fact that every other European currency, except the Swiss franc, has weakened since our April report.
“As schools prepare to break up, it is good to report a turnaround in the pound’s fortunes against the Turkish lira. Families travelling to one of Europe’s best value destinations will have 19% more cash to spend now than if they had changed pounds into lira in January.”
He added: “Holidaymakers can look forward to cashing in on the increased buying power of sterling in most popular destinations this summer.
“However, those still to book a last-minute getaway should take care to factor resort prices into the holiday budget. Tempting as it may be to go for the cheapest package price available, if this is to a destination where resort prices are higher, it could seriously inflate the overall holiday cost.”