Going abroad without cash could be an expensive mistake for some holidaymakers, according to a new survey. The survey carried out by Opinium on 2,000 people across the UK who have travelled abroad looked into what Brits do when they need to withdraw cash on holiday.
Commissioned by Be Clever With Your Cash, the research found that going abroad without cash turns out to be expensive for some travellers, as those suddenly needing cash could end up paying extra costs. Some 39% of those polled have found themselves in unexpected situations where cash was required while they were abroad.
Among the most common expenses included tipping, taxi fares and shopping at local or independent retailers. Travelling outside major cities can create extra problems as remote areas in some countries could be less likely to accept cards. Additionally, the research found that some people who had to make an emergency cash machine withdrawal on their last trip overseas were charged an ATM fee. Those turning up to airport exchange desks for last-minute cash might be getting a worse deal than if they had shopped around for their travel money and planned ahead.
Amelia Murray, a money expert at Be Clever With Your Cash, said: “There’s still a blind spot when it comes to cash. Many people assume that having a fee-free card is enough, but that can be a false economy if you end up using an ATM abroad that charges or get stung by poor exchange rates.
“It’s not about carrying wads of cash, it’s about being prepared for those moments when a card simply won’t cut it.”
Ms Murray recommended bringing along a small amount of local currency as a “cash cushion” – handy for tipping, using public transport, or in situations where cards aren’t accepted. She also advised travellers to familiarise themselves with their card’s terms regarding foreign transaction fees and exchange rates before departing.
Additionally, it’s worth checking how much coverage your travel insurance provides in case your cash is lost or stolen while abroad. According to research published in May by financial information firm Defaqto, 91% of annual travel insurance policies and 86% of single-trip policies included cash cover as a standard feature.
The analysis also found that just over a third (35%) of single-trip policies provided cash cover ranging from £200 to £299, while 24% offered between £300 and £399 in coverage.