According to foreign exchange specialists Moneycorp, sterling is weaker against 38 of 50 global currencies compared with a year ago, and people travelling to Europe, or further afield to the States and Australia, may find their holiday money does not go as far as they hoped.
"The weak performance of sterling over the past 12 months means our summer pounds aren't going to stretch quite as far this year as they did last year," said Matthijs Boon, Moneycorp's director of travel money.
Moneycorp's Boon said British travellers could get more for their pound in countries where sterling has strengthened against local currencies, such as Argentina, South Africa and Brazil. However, he added: "Cheaper destination costs will need to be weighed up against the higher price of flights to get there, when compared to hopping on a plane over to mainland Europe."
However, there are still some far flung destinations where British holidaymakers' pounds will stretch further this summer compared to 12 months ago:
For those intent on staying in Europe, the picture isn't helped by the cost of petrol. A recent report by the Post Office showed that motorists travelling to mainland Europe will find filling up with fuel a pricey business. The Post Office's Motoring on the Continent report showed that unleaded petrol prices have increased by 9p per litre over the past 12 months in Spain, and by 7p per litre in France, and as sterling remains weak the increases will be felt even more keenly for British travellers.
Moneycorp has the following advice for travellers to help their holiday money go that little bit further:
- Don't use a credit card to withdraw money from an ATM abroad, you will pay the bank's exchange rate as well as a foreign exchange fee and an ATM fee. You will also owe interest on your withdrawal immediately.
- Use a pre-paid currency card, such as Moneycorp's Explorer card, which you can load with money before you leave. You won't pay a foreign exchange fee when you withdraw cash from an ATM, and you'll also get a better exchange rate.
- Avoid withdrawing from ATMs in shops as they are likely to charge a fee.
- Take a combination of cash and cards to cover the first few days of your break. You may need cash for taxis or tipping in restaurants.
- Order travel money online to get the best exchange rates. It can even be delivered to your home or a bureau de change at the airport you leave from.