How to Get the Best Exchange Rate for Holiday Money
Airport bureaux de change offer the worst exchange rates you'll find anywhere. If you're buying holiday money without comparing options, you're likely losing 2–5% of your spending power before you've even left the UK.
To get the best exchange rate for holiday money, start with the Bank of England's mid-market rate — this is what banks pay each other, and it's the fairest baseline. Any provider charging more than 1% above this rate is expensive. The biggest savings come from online currency brokers and travel money cards, which typically beat high street banks by 1–3%, and airport bureaux by 3–5% or more.
Why Airport Bureaux de Change Are a Trap
Airport currency shops charge 5–10% above the mid-market rate. That's not a slight markup — it's a genuine loss.
Here's a worked example: You're flying to Spain with €2,000 to spend. The interbank mid-market rate is £1 = €1.10.
| Provider | Rate applied | You receive | Cost vs. mid-market |
|---|---|---|---|
| Mid-market (reference) | €1.10 | €2,000 | — |
| Airport bureau | €1.05 | €1,900 | £95 (4.8% loss) |
| High street bank | €1.07 | €1,940 | £28 (1.4% loss) |
| Online broker | €1.09 | €1,980 | £9 (0.5% loss) |
| Travel card (pre-loaded) | €1.09 | €1,980 | £9 (0.5% loss) |
That £95 difference is money you could've spent on dinner in Barcelona instead. And the worse your rate, the worse it stings across larger amounts.
Why are airport shops so expensive? They operate in premium locations with high rental costs, they know you're in a rush (and won't shop around), and they assume you'll only buy a small amount anyway — so they load the markup heavy.
Best Options: Where to Buy Holiday Money
You have four main routes. The best choice depends on how much you're buying and how far ahead you're planning.
Online currency brokers (best for amounts over £500)
Services like Wise (formerly TransferWise), OFX, or your bank's comparison rate beat high street banks on almost every currency. They charge 1–2% above mid-market and often offer better rates if you hold an account with them.
Why they're cheaper: they operate online with low overhead, handle large volumes, and make money on the spread (the difference between their buy and sell rates) rather than a fee. You transfer pounds from your UK bank, they send the foreign currency to you or hold it on a prepaid card.
Timing matters. Use a tool like Wise's rate alert to watch your currency pair and buy when the rate improves — you might save another 0.5–1% by timing it to avoid peaks.
Travel money cards (best for flexibility + safety)
Pre-loaded travel cards (like Wise, Revolut, or your bank's offering) let you load foreign currency in advance and use it like a debit card abroad. No commission on purchases, rates match the interbank mid-market or better, and if you lose it, it's not like cash.
The trade-off: you need to predict how much you'll spend (though you can usually reload), and some cards have fees for cash withdrawals (typically 1–2% of the amount). But if you're mostly using card payments, they're excellent.
Best for: travellers who don't carry much cash, or those visiting multiple countries (load multiple currencies on one card).
High street banks (worst of the mainstream options, but sometimes convenient)
Your bank will buy foreign currency for you, usually at 1.5–2.5% above mid-market. It's more expensive than brokers or cards, but quicker if you only need a small amount and want it immediately. Call ahead — they may need 24–48 hours for larger sums.
Best for: last-minute small amounts (under £200–300) or if you want the reassurance of dealing with your regular bank.
Credit or debit cards (it depends)
Using your UK credit or debit card abroad triggers two costs: the exchange rate markup (0.5–2.5% depending on your card) and a cash withdrawal fee (1–3% for ATMs, often waived for purchases). Visa and Mastercard offer better rates than American Express.
The catch: some travel destinations (rural Greece, small Spanish towns) prefer cash. And spending on card is convenient but harder to budget against.
Best for: card purchases in major cities where paying by card is normal. Avoid ATM withdrawals unless your card has zero fees.
How Much Will You Actually Save?
Take a typical 2-week holiday where you'll spend £1,500 in foreign currency. Here's what you'd pay with each method:
| Method | Your rate | Cost (vs. mid-market at €1.10) | Total you pay |
|---|---|---|---|
| Airport bureau (€1.05) | 4.8% markup | £72 | £1,572 |
| High street bank (€1.07) | 1.4% markup | £21 | £1,521 |
| Online broker (€1.09) | 0.5% markup | £7 | £1,507 |
| Travel card (€1.09) | 0.5% markup | £7 | £1,507 |
The difference between airport and online broker: £65 saved. Across a week's accommodation, meals, and activities, that's real money.
Timing and Rate Watching
Exchange rates move daily. The Bank of England publishes daily mid-market rates, and rates typically swing ±2–3% within a week. If you're buying more than £2,000 worth, it's worth watching your currency pair for 2–3 weeks.
Set up rate alerts on Wise or your broker's app. When the rate improves by 0.5–1%, that's your signal to buy. Trying to time the absolute best rate is a fool's game — currency moves are unpredictable — but catching a decent peak instead of a trough is sensible.
If the rate dips just before your trip, resist the panic buy. Most brokers let you lock a rate for 24–48 hours without paying, so you can confirm your booking before committing.
Multi-Currency Trips
If you're visiting two or more countries (say, France then Spain), you have two options:
- Load a multi-currency card (Wise, Revolut) with both euros and dollars. You use each currency as you travel.
- Exchange to one currency if both countries use the same — much simpler for the Eurozone.
Multi-currency cards are brilliant for complex trips and avoid the hassle of finding another bureau. The rates are typically the same across currencies, so no disadvantage there.
Frequently Asked Questions
Q: Should I buy holiday money before or after my trip? A: Buy before you travel. After you return, any leftover currency is harder to sell, and the rates for small amounts (under £100) are usually poor. If you have significant leftover funds, Wise and other brokers will buy it back, but at a slightly worse rate than you paid.
Q: Is travel insurance or currency protection worth it? A: No. Travel insurance covers lost baggage and medical emergencies, not exchange rate swings. Once you've bought your currency, the rate is locked — you've made your bet. Some cards offer fraud protection on purchases, which is useful, but not "exchange rate protection."
Q: What if I run out of cash abroad? A: Use an ATM or pay by card. Yes, there's a fee on the ATM withdrawal (1–3%), but it's often less than the panic-markup you'd pay at a tourist bureau abroad. Always have a backup card. Let your bank know you're travelling so they don't flag transactions as fraud.
Q: Do I need to notify my bank I'm going abroad? A: Not legally, but it's wise. Call your bank or flag it in their app. It prevents them from blocking your card on suspicious foreign transactions. Some banks charge a fee for cash withdrawals abroad (even if other transactions are free), so ask.
Q: Should I use travel insurance that locks the exchange rate? A: Only if you're buying currency months in advance and concerned the rate will plummet. For most holidays 2–8 weeks away, it's not worth the cost. The premium usually eats the savings.
Q: Is cryptocurrency a good way to carry money abroad? A: No. Volatility is extreme, many places don't accept it, and fees are unpredictable. Stick to standard methods.
Q: What about traveller's cheques? A: They're functionally dead. No one accepts them, and the rates are terrible. Ignore them.
How SimpleCalc Can Help
While we don't have an exchange rate calculator yet, our money-saving apps guide includes currency comparison tools, and our savings goal calculator helps you plan and track your holiday fund. If you're saving towards a trip, our guide on saving for a holiday without feeling the pinch covers budgeting alongside currency strategy.
For frequent travellers, review our post on cashback credit cards — some cards reward international spending, which can offset card fees.
The Bottom Line
Getting the best exchange rate for holiday money is a straightforward process: check the mid-market rate, use an online broker or travel card, and watch the rate for 2–3 weeks before buying. The savings — typically 2–5% — add up fast. An airport bureau looks convenient, but it's the most expensive choice by far.
Budget your holiday spending in advance, buy your currency 1–2 weeks before travel, and use a reputable provider. Check the FCA register if you're using a broker you haven't heard of — it confirms they're regulated.
Enjoy your trip without the exchange rate hangover.