- Only just over half of UK holidaymakers could identify the correct exchange rate for GBP : Euro
- 70% of UK holidaymakers couldn’t pick out the correct exchange rate for GBP : USD
- Research also reveals that watching flight prices, weighing hold luggage and not taking out travel insurance are amongst ways UK holidaymakers look to save money on trips
New research from the DCC Forum has revealed that UK holidaymakers have significant knowledge gaps when it comes to the exchange rates for familiar currencies, with just over half being able to identify the correct exchange rate for converting 1GBP to its equivalent in Euros, when presented with three options.
Uncertainty is even greater around the exchange rate between Pound Sterling and US Dollar, with 70% of those questioned unable to pick out the correct conversion of 1.21USD and 1 in 10 stating outright that they didn’t know. Across both Euro and US Dollar currencies, knowledge of the correct Pound Sterling conversion rates is the same amongst male as it was female holidaymakers.
Beyond these currencies, holidaymakers’ awareness of other foreign exchange rates is extremely low. Only 27% of respondents could identify the correct exchange rate from 1GBP to Australian Dollars as 1.77AUD and just 21% knew that 1GBP was the equivalent of 1.32CHF. Knowledge on the exchange rates for the South African Rand and Turkish Lira is even poorer, with just 15% of holidaymakers able to correctly identify the accurate conversion for both. When presented with options for the conversion from 1GBP to the Chinese Yuan, 87% of respondents failed to identify the correct answer.
The research of 500 British holidaymakers in partnership with Censuswide also reveals that where exchange rate knowledge is evidently not high on the agenda of many UK holidaymakers, they are using other means to save money when they go on holiday abroad. The most favoured method, used by 39% of respondents, is watching the prices of flights in order to get the best deal when booking, followed by 31% cash-conscious holidaymakers, who weigh their hold luggage before they go to the airport.
A quarter of respondents choose to fly at off peak times and the same number will try and walk as much as possible during their trip instead of spending money on public transport or taxis. A small minority (11%), don’t take out travel insurance in a bid to save on spending, whilst 14% said they don’t take any measures to save money when they go on holiday
Gino Ravaioli, chairman of the DCC Forum, comments: “Evidently, holidaymakers are looking for ways to reduce their costs when going on trips abroad, from weighing luggage to avoid excess baggage charges to flying at anti-social hours. Despite this, many are unaware of the correct conversion rates for currencies like the Euro and US Dollar, which they are likely to be using when away. With the fluctuation of the Pound means it has become increasingly important for holidaymakers to have more clarity in their spending and be fully aware of their payment options when abroad, so they can avoid going over budget.