15th March 2016
Sterling has fallen by as much as 10% against nine currencies of popular ski destinations compared to a year ago, meaning holidaymakers heading to the slopes in 2016 could be in for an expensive trip.
Uncertainty over whether or not Britain will vote to exit the EU in the referendum this June has caused volatility in the foreign exchange markets. Over the past 12 months, the pound has fallen by between 0.8% and 10.1% against nine currencies of countries that have popular ski destinations.
The new analysis from global currency business Centtrip reveals that compared to a year ago, the pound is only up against the Norwegian Krona (by 3.1%).
A survey of Brits going skiing or snowboarding this year reveals that 87% will spend over £1,000 whilst there. Some 43% believe they will spend more than £2,000, and 5% anticipate spending at least £5,000.
The research reveals that the average foreign exchange spread on debit, credit and prepaid currency cards when buying euros is 2.44%, 2.21% and 2.82% respectively.
The research company MoneyComms found that by taking into account FX spreads as well as charges when buying £5,000 worth of euros for example, the average cost of this when using a credit card and a debit card would be around £163 and £150 respectively. Centtrip claims that the cost using its own card would be £51.
Tony North, co-founder of Centtrip says: “The current uncertainty around whether the UK will stay in or leave the EU is leading to increased volatility around Sterling, and those Brits going skiing or snowboarding now are likely to have less spending power than they did a year ago.
“However, you can offset the fall in the value of Sterling by making sure that you buy your foreign currency in the most cost effective and transparent way possible, and start by finding a service that does not include hidden fees.”
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