Airport profits from bureaux de change have risen to more than £100 million while exchange rates have tumbled below one euro to the pound, it is claimed today.
Passengers at UK airports get worse rates than those at European hubs as Heathrow and Gatwick drive up rents and strike exclusivity deals with foreign-exchange operators, an investigation by The Times found.
The average rate at 20 British airport bureaux de change surveyed over the past three months was 13% worse than the market exchange rate.
Travellers can get a better deal at European airports, where profit margins are a quarter lower on average.
The difference from the market exchange rate at Dankse Bank at Copenhagen airport was only 3%, compared with an average of 12.5% at Heathrow and 15% at Stansted.
The worst rate was at Southampton airport, where Moneycorp was offering 95 cents to £1 compared with a market rate of €1.18 to £1.
The average rate offered by Travelex at Heathrow was €1.02 to the pound, 12.5% worse than the market exchange rate. In 2010 it was offering rates 11% below the market rate.
The combined income of the UK’s other major airports, such as Manchester, Stansted and Bristol, is much bigger than that of Gatwick, suggesting they are collectively making at least £25 million from foreign exchange operators – meaning that total profits from bureaux de change were more than £100 million last year, according to calculations by the newspaper.
Gatwick spokesman said: “Our foreign exchange provider – Moneycorp – incurs higher costs as, unlike high street outlets, they are open and staffed 24 hours a day and hold substantial volumes of more than 50 currencies.
“For customers who are able to pre-order currency for collection, we can offer rates that are among the best anywhere in the country.”
Heathrow said its rates were better than at Schiphol, Charles de Gaulle and Frankfurt airports. It said that the rise in revenue was not representative of a trend.
A spokeswoman added: “We are confident that Travelex provides competitive rates at Heathrow compared with the UK and internationally.”
More than five million people are expected to fly from British airports this Christmas, with almost 250,000 travelling through Heathrow on its busiest day.
One in ten travellers buys currency from their departure airport.