Weak pound: how to avoid losing out on holiday

The value of the pound fell to a six-month low against the euro today, increasing the cost of spending for millions of British holidaymakers.

Sterling also plunged against the dollar last week due to uncertainty over the UK's exit from the European Union, “as the two candidates to be Britain’s next prime minister vied to outgun each other on taking a harder Brexit stance”, reports Reuters.

At lunchtime today, the pound was worth around €1.11 and $1.25. As schools break up for the summer and British families head off on holiday, here are a few ways to save some pennies this holiday season.

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Book an all-inclusive package

With all-inclusive packages, holidaymakers know everything has been paid for in advance and don’t have to worry about exchange rates.

And there’s a new breed of all-inclusive holidays that won’t evoke all-you-can-eat buffets and dreaded pool chair wars, says The Times. These new resorts are calling their packages “full board plus”, “infinite lifestyle”, or “clubs”.

Packages can include not only a one-week all-inclusive stay but also flights. Summer bookings at such all-inclusive holiday resorts are up 6% this year, according to the newspaper.

Choose a destination where the pound is still strong

“It is important to consider both the exchange rate and the local cost of items that tourism will buy while on holiday”, says the BBC. While the pound is weak in some countries, it still holds value in others, such as Argentina. Currently the pound is returning about 50% more Argentine pesos than last year in this luxury-for-less country. The second best exchange rate is currently in Turkey. Other countries where you will currently be able to make your money go further include Tunisia and Bulgaria.

Get the best exchange rate

Most debit and credit cards add 3% to the rates banks quotes. For this reason, The Guardian recommends using a debit card instead of a credit card while abroad, as the latter will usually charge 2% fees to pay the provider. Load-free cards also offer travellers untouchable rates in every country. The newspaper recommends searching for the best exchange rate for cash before you leave rather than getting caught out at an expensive bureau de change at the airport. MoneySavingExpert shows the best rates in real time so you can get the best deal.

Stick to a staycation

Alternatively, there are still plenty of things to do around Britain, including beaches that can rival Europe if the sun stays out. North Wales was declared one of Lonely Planet’s top ten destinations two years ago, while the Lake District offers beautiful landscapes treasured by some of the country's greatest writers. Travel to the Highlands in Scotland and discover peaceful serenity at the tops of mountains or take a city break packed with trips to free museums and galleries. The UK has a vast variety of places to explore, making a staycation not a bad option at all.