Surprise fees catching holidaymakers off guard – however 1 factor may also help
Research shows holidaymakers regularly spend more than they intended with unexpected charges like currency exchange fees and data roaming costs the biggest culprits.
Holidaymakers are getting caught out by hidden fees(Image: Getty Images)
The average holidaymaker tends to blow their travel budget by over £100 per trip, with unexpected charges being the primary culprit. According to a survey of 2,000 adults who holiday overseas, currency exchange fees and data roaming are amongst the most frequent surprise costs.
Despite 53% claiming they set a firm spending limit before going away, more than four in ten (43%) point to unforeseen hidden charges for busting their budget. To tackle these sneaky fees, seven in 10 (70%) revealed they mainly use cash while abroad, with 44% choosing to rely on their debit card.
Kat Robinson, head of everyday banking at The Co-operative Bank, which conducted the research as part of its announcement to scrap foreign exchange fees on debit card spending overseas, said: “Spending abroad should be straightforward, but extra card fees can quickly catch people out.”
Generally, 48% will opt to pay in the local currency – the more economical approach – when using their card abroad at a payment terminal or cash machine, but one in eight (13%) risk facing steeper charges by choosing the pound option.
To help holidaymakers dodge unnecessary charges this summer, The Co-operative Bank is scrapping its 2.75% foreign transaction fee on debit card purchases abroad across all its personal current accounts, enabling customers to spend overseas just as they would at home without fretting about additional costs.
With millions of Britons jetting off abroad each year, the move aims to help cut down on surprise charges and better control holiday spending.
Kat added: “By removing foreign transaction fees, we’re making it more affordable for customers to use their debit card overseas and make the most of their money, whether they’re on a family holiday, a city break or exploring somewhere new.
“But remember, if given the option when spending abroad, always pay in the local currency.
“Paying in pounds might feel more familiar, but it could mean being hit with extra currency conversion charges from the retailer – a hidden cost that often only becomes clear on returning home. “
