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£335m Commission Charges Makes Holiday Spending A Costly Affair

Research has shown that Brits spent more than £300 million on commission fees last year, with many banks charging a minimum of £3 per transaction when we use our bank cards on holiday.
Finance, Leisure - 1 June 2011   Download IconContent available for download:  
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Recent research shows that 96% of British holiday makers plan to spend their summer holiday abroad this year, an increase of 18% from last year. In the first quarter of 2011, UK residents spent £7.3 billion abroad during the 13.5 million trips that were made.

The average Brit will spend £288 a week while away this summer. If you use your credit card, this could equate to over £100 in commission charges for a family of four on a two week holiday. Recent estimates suggest that £335 million was spent last year in commission fees, with many banks’ charging a minimum of £3 per transaction, as well as interest adding to the high cost of using your cards overseas.

In the past five years, 1.8 million holiday makers have had money stolen while abroad, with the average tourist losing money and possessions to the value of £326 during that period.

. Introduction:

Holidaying abroad is making a comeback, with Brits making nearly 60 million trips overseas in the past year. However it can be a costly business, and deciding how best to pay for your needs while overseas can be tricky. Traveller’s cheques are in decline, and with over a third of holiday makers claiming to have had money stolen from them while abroad, the fear of falling victim to this puts many people off carrying large quantities of cash. Lots of people therefore turn to using their cards to pay their way on holiday, but it can be confusing and costly if you don’t get it right.

So what is the best way of spending abroad without breaking the bank or falling victim to theft?

Joining us to discuss this further is Chris A’Court, a travel money expert from Nationwide Building Society.

. Suggested Questions:

How much do people in our area spend while abroad?

Why are overseas holidays making a comeback this year?

What are the risks associated with taking cash abroad?

So if you’re saying not to take too much cash, what should you do?

How can holiday makers avoid paying too much in commission fees when travelling this summer - and are there any other quick tips?

Where can our listeners find out more information?