The expensive money mistake travellers are making when going on holiday - what to avoid

Holidaymakers are being warned not to make a travel money mistake that will add to their costs.

Tax expert Andy Wood , of Crypto Tax Degens, says people should avoid exchanging money at airports and explore low-cost alternatives when going on holiday. He added: "UK holidaymakers waste millions of pounds annually by exchanging their travel money at airports, and families could lose €374 million (£319.5 million) just this year alone.

"More than a third of parents opt for airport currency exchanges, losing an average of €89 (£76) from poor exchange rates. This raises concerns that families may be more affected by overpriced currency exchanges, emphasising the need for greater awareness and cost-effective alternatives.

• Read More: Travel advice for anyone flying from Newcastle Airport after hand luggage liquid rule change

• Get all the latest money news and budgeting tips from Chronicle Live with our free newsletter

"Currency exchange should be approached with the same care as booking flights or accommodations. Families, in particular, should be cautious of airport currency exchanges, where poor rates can lead to substantial losses.

"The common use of cash among travellers, along with potential fees when converting back to British pounds, stresses how important it is to financially plan strategically before a trip. Holidaymakers should aim to reduce unnecessary expenses by choosing cost-effective payment methods and avoiding high currency conversion fees."

Use travel debit cards

Mr Wood says that exploring low-cost alternatives like travel debit cards can offer significant savings and reduce the risk of overpriced exchanges. He added: "Holidaymakers are encouraged to explore alternatives to traditional currency exchange services. Using cards that offer competitive exchange rates and transparent fee structures can help travellers save money and avoid unnecessary charges from ATM withdrawals or currency conversion.

"Ultimately, getting good value on currency exchange rates should be a top priority for travellers, alongside other travel-related expenses. By planning ahead and exploring low-cost alternatives, holidaymakers can make the most of their travel budget and avoid unnecessary spending."