News & views

25 March 2009

UK holidaymakers to count the cost of currency confusion

UK holidaymakers’ seeking destinations outside the eurozone to make their pounds go further by avoiding poor euro sterling exchange rates may need to do some homework before they book, according to First Rate Exchange Services.

First Rate Exchange Services’ advice follows the publication of new research from a OnePoll survey of 2,000 consumers which revealed that over half of people believe popular destinations such as Malta and Cyprus are outside the eurozone, and that many people may avoid some of Europe’s cheaper destinations such as Turkey and the Czech Republic, because they mistakenly believe that they use the euro.

Some of the most surprising findings of the The OnePoll survey² are:

• Almost three quarters of people (72 per cent) think the euro is the currency used in the Czech Republic
• 20 per cent of people surveyed did not know that key destinations like Portugal and Greece use the euro
• Almost half of people (46 per cent) believe the euro is used in Demark
• More then half of those surveyed (59 per cent) did not know the euro is the currency of Cyprus, and (61 per cent) said the same of Malta
• Three quarters of people were unware that Slovakia is now part of the eurozone
• Approximately a  third of people (32 per cent) believe Turkey is part of the eurozone

Gordon Gourlay, Managing Director, First Rate Exchange Services said: “The survey highlights that the travel industry needs to be aware there is confusion amongst consumers as to which countries form the eurozone.   With one in five people believing that founder nations such as Portugal remain outside the euro, it’s clear that when helping people select their holidays travel agents need to be ready to provide advice not just on destinations and their attractions, but also on currency requirements too.”

With a third of consumers believing the euro is used in Turkey, many UK holidaymakers may mistakenly avoid what is actually set to be one of this year’s best value destinations, thinking their pounds will go further elsewhere.  

First Rate Exchange Services is the wholesaler behind the Post Office’s market leading foreign exchange service.  Based on the current Post Office exchange rate UK tourists will get around the same number of Turkish lira as they did 12 months ago.  Similarly, while sterling is currently just under 10 per cent weaker against the Czech koruna than it was a year ago, this compares favourably with the drop of almost 17 per cent in the value of the pound against the euro.

According to the survey, UK consumer’s confusion over currency is not restricted to the eurozone.  Only 31 per cent of people were able to link Bulgaria with the lev³, even though it is being tipped as one of the best cheap alternatives to a eurozone resort this summer. Surprisingly, also, only 45 per cent of those surveyed could match Poland – a destination with flights now widely available from a range of UK airports - with its currency, the zloty4.

Note to Editors:

¹Survey of 2,000 UK holidaymakers for Post Office Travel Services by OnePoll to establish awareness of currencies used in tourist destinations. 

²Table showing the percentage of UK holidaymakers who think these European countries use the euro:

COUNTRY	ACTUAL CURRENCY	PERCENTAGE WHO RESPONDED EURO
Portugal	euro	79%
Greece	euro	73%
Austria	euro	57%
Denmark	kroner	46%
Cyprus	euro	41%
Malta	euro	39%
Turkey	lira	32%
Czech Republic	koruna	28%
Hungary	forint	26%
Slovakia	euro	25%

³When asked to identify which country uses the lev from a choice of Hungary, Croatia, Lithuania, Poland and Bulgaria, only 30 per cent chose Bulgaria.  Almost as many (30 per cent) selected Lithuania, while 14 per cent opted for Hungary.

⁴When asked which country uses the zloty from a choice of Lithuania, Poland, Lebanon, Bulgaria and Russia, 45 per cent identified Poland.  20 per cent picked Lebanon while around 11 per cent each choice the remaining three countries.

About First Rate Foreign Exchange Services:

First Rate is the UK’s leading provider of foreign currency services supplying over 12,000 retail outlets with a foreign currency service. It is the UK’s biggest foreign currency notes supplier and Europe’s major provider of traveller’s cheques and in the top five globally. First Rate sources currency through its associate business unit Bank of Ireland First Currency Services, one of the world’s leading wholesale currency operations.

First Rate can provide UK retailers and businesses with the following foreign currency services:

• Travel Money Online – a service enabling the ordering of foreign currency notes and traveller’s cheques securely via First Rate’s white label internet application
• Bulk provision of currency for currency retailers
• End-to-end consumer order processing – totally outsourced, white label currency solutions for phone, internet or retail outlet order placement

To find out more visit www.firstrate.co.uk.

For further information, please contact:

Four Countries Communications
Ruth Barker
Tel: 0207 749 9219
Mobile: 07814 571128
Email: ruth@fourcountries.co.uk

Bank of Ireland UK Financial Services
Sandra Grandison
Tel: 0207 634 3477
Mobile: 07912 298013
Email: sandra.grandison@boiuk.com

First Rate Exchange Services Ltd is registered in the UK and Supervised by HM Revenue & Customs for Money Service Business (MSB): License number 12133160. First Rate is a joint venture between The Governor and Company of the Bank of Ireland (Registered in Ireland and passported into the UK for regulatory purposes) and the Post Office^® Ltd. The Bank of Ireland is authorised by the Irish Financial Regulator and the Financial Services Authority for the conduct of business in the UK. Bank of Ireland First Currency Services is a division of The Governor and Company of the Bank of Ireland.