Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Travel Money - UK - March 2017

“The travel money market has benefited from rising numbers of people going abroad. However, the decline in the value of the Pound following the Brexit vote will change the way people shop for travel money. Exchange rates are already one of the most important factors when choosing travel money; however, holidaymakers now expect to spend more time shopping around for a good deal and ensuring they budget accurately.”

–    Jessica Galletley, Financial Services Analyst

This report will cover the following areas:

  • Falling Pound will affect consumers’ travel money shopping habits
  • Foreign currency continues to be preferred due to convenience and familiarity
  • Prepaid cards and apps could be the key to holiday budgeting

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Overview

    • What you need to know
      • Products covered in this Report
      • Executive Summary

          • The market
            • Total expenditure abroad grows by 11% in 2016
              • Figure 1: Forecast for annual expenditure on overseas trips by UK residents, 2011-21
            • Majority arrange some form of travel money in the UK
              • Figure 2: Method of arranging travel money in the last 12 months, November 2016
            • Visits increased by 7.2% in 2016
              • Figure 3: Number of overseas visits by UK residents, by purpose, 2010-16
            • Reduced rates will limit spending power abroad
              • Figure 4: Spot exchange rates, monthly average, US Dollar-Sterling and euro-Sterling, January 2010-January 2017
            • Companies and brands
              • Adspend reaches £5.7 million in 2016
                • Figure 5: Total above-the-line, online display and direct mail advertising expenditure on travel money (including prepaid cards), 2012-16
              • FinTech drives prepaid cards innovation
                • Post Office stands out from other travel money providers
                  • Figure 6: Attitudes towards and usage of selected brands in the travel money sector, December 2016
                • The consumer
                  • Foreign currency remains the most popular payment method abroad
                    • Figure 7: Method of spending money on holiday abroad, November 2015 and November 2016
                  • Travel money gives people reassurance when spending abroad
                    • Figure 8: Attitudes towards travel money, November 2016
                  • Budgeting tools can help people understand how much travel money they need
                    • Figure 9: Attitudes towards budgeting travel money, November 2016
                  • Two out of five use their card for larger costs
                    • Figure 10: Credit and debit card usage abroad, November 2016
                  • Rates and no fees are most important
                    • Figure 11: Factors of importance when arranging travel money, November 2016
                  • Shopping habits set to change following fall in the value of the Pound
                    • Figure 12: Impact of the recent decline in the value of the Pound on arranging travel money, November 2016
                  • What we think
                  • Issues and Insights

                    • Falling Pound will affect consumers’ travel money shopping habits
                      • The facts
                        • The implications
                          • Foreign currency continues to be preferred due to convenience and familiarity
                            • The facts
                              • The implications
                                • Prepaid cards and apps could be the key to holiday budgeting
                                  • The facts
                                    • The implications
                                    • The Market – What You Need to Know

                                      • Total expenditure abroad grows by 11% in 2016
                                        • Growth to slow going forward
                                          • Majority arrange some form of travel money in the UK
                                            • Overseas visits increased by 7.2% in 2016
                                              • Europe continues to attract the majority of travellers
                                              • Market Size and Forecast

                                                • Total expenditure abroad grows by 11%
                                                  • Figure 13: Total annual expenditure on overseas trips by UK residents, 2010-16
                                                • Visiting friends or relatives sees biggest increase in spend
                                                  • Figure 14: Annual expenditure on overseas trips by UK residents, by purpose of visit, 2010-16
                                                • Majority of overseas spend in Europe
                                                  • Figure 15: Annual expenditure on overseas trips by UK residents, by region of visit, 2010-16
                                                • International card payments continue to grow
                                                  • Figure 16: Value of overseas spend on debit and credit cards, 2015
                                                • Growth to slow going forward
                                                  • Figure 17: Forecast for annual expenditure on overseas trips by UK residents, 2011-21
                                                • Forecast methodology
                                                • Channels to Market

                                                  • Majority arrange some form of travel money in the UK
                                                    • Figure 18: Method of arranging travel money in the last 12 months, November 2016
                                                  • Preference for in-store purchase
                                                    • Figure 19: Method of ordering/ collecting travel money in the last 12 months, November 2016
                                                • Market Drivers

                                                  • Visits increased by 7.2% in 2016
                                                    • Figure 20: Number of overseas visits by UK residents, by purpose, 2010-16
                                                  • Biggest increase in visits to Europe
                                                    • Figure 21: Number of overseas visits by UK residents, by region visited, 2010-16
                                                  • Outlook looks positive for holiday bookings despite Brexit
                                                    • Figure 22: Booked holidays in the last three months and intentions to book a holiday in the next three months, June 2012-January 2017
                                                  • Reduced rates will limit spending power abroad
                                                    • Figure 23: Spot exchange rates, monthly average, US Dollar-Sterling and euro-Sterling, January 2010-January 2017
                                                  • Home or abroad?
                                                  • Companies and Brands – What You Need to Know

                                                    • Adspend reaches £5.7 million in 2016
                                                      • FinTech drives prepaid cards innovation
                                                        • Brand building through added-value services
                                                          • Post Office is a brand leader
                                                          • Competitive Strategies

                                                            • Travel money providers remain committed to high street presence
                                                              • eurochange
                                                                • No1 Currency
                                                                  • Thomas Cook
                                                                    • FinTech drives prepaid cards innovation
                                                                      • Revolut continues to make waves
                                                                        • Soldo travel card targeted at families
                                                                          • Monzo gains traction among students
                                                                            • Payment Cloud Technologies and FEXCO launch No1 Currency card
                                                                              • Brand building through added-value services
                                                                                • Post Office launches travel money game
                                                                                  • Travelex launches holiday planning tool
                                                                                    • FairFX
                                                                                      • Travel money ‘sales’
                                                                                      • Advertising and Marketing Activity

                                                                                        • Adspend reaches £5.7 million in 2016
                                                                                          • Figure 24: Total above-the-line, online display and direct mail advertising expenditure on travel money (including prepaid cards), 2012-16
                                                                                        • Post Office accounts for 46% of all spend
                                                                                          • Figure 25: Top 10 advertisers on above-the-line, online display and direct mail advertising expenditure on travel money (including prepaid cards), 2012-16
                                                                                        • Digital trumps TV spend
                                                                                          • Figure 26: Total above-the-line, online display and direct mail advertising expenditure on travel money (including prepaid cards), by media type, 2012-16
                                                                                        • Nielsen Ad Intel coverage
                                                                                        • Brand Research

                                                                                            • What you need to know
                                                                                              • Brand map
                                                                                                • Figure 27: Attitudes towards and usage of selected brands, December 2016
                                                                                              • Key brand metrics
                                                                                                • Figure 28: Key metrics for selected brands, December 2016
                                                                                              • Brand attitudes: Currency specialists are considered to be worth paying more for
                                                                                                • Figure 29: Attitudes, by brand, December 2016
                                                                                              • Brand personality: Bank brands are more likely to be viewed as boring
                                                                                                • Figure 30: Brand personality – Macro image, December 2016
                                                                                              • Most brands viewed as competent and helpful
                                                                                                • Figure 31: Brand personality – Micro image, December 2016
                                                                                              • Brand analysis
                                                                                                • Post Office stands out from other travel money providers
                                                                                                  • Travel money specialists viewed as exactly that
                                                                                                    • Supermarket and retail banks fail to engage
                                                                                                      • Consumers confused over Virgin Money
                                                                                                        • Holiday specialist Thomas Cook benefits from brand reputation
                                                                                                        • The Consumer – What You Need to Know

                                                                                                          • Foreign currency remains the most popular payment method abroad
                                                                                                            • Travel money gives people reassurance when spending abroad
                                                                                                              • Frequent credit card use for back-ups/emergencies
                                                                                                                • Rates and no fees are most important
                                                                                                                  • Fall in the value of the Pound means more will shop around
                                                                                                                  • Methods of Spending Abroad

                                                                                                                    • Four in five use travel money abroad
                                                                                                                      • Figure 32: Method of spending money on holiday abroad, 2015 and 2016
                                                                                                                    • Over-55s are more reliant on foreign currency
                                                                                                                      • Figure 33: Method of spending money on holiday abroad, by age, November 2016
                                                                                                                    • Nearly half use only one method of spending
                                                                                                                      • Figure 34: Number of different ways of spending money on holiday abroad, November 2016
                                                                                                                  • Attitudes towards Travel Money

                                                                                                                    • Comfort in taking travel money
                                                                                                                      • Figure 35: Attitudes towards travel money, November 2016
                                                                                                                    • Frequent credit card use for back-ups/emergencies
                                                                                                                      • Figure 36: Method of spending abroad, by agreement with the statement ‘I only use my credit card on holiday abroad as a back-up or for emergencies’, November 2016
                                                                                                                    • Half of holidaymakers use PCWs for their travel money
                                                                                                                      • Specialist foreign exchange providers benefit from comparison websites
                                                                                                                        • Figure 37: Method of arranging travel money in the last 12 months, by agreement with the statement ‘I use a price comparison website to find the best deal on travel money’, November 2016
                                                                                                                      • Changing money at the destination
                                                                                                                      • Holiday Budgeting Behaviour

                                                                                                                        • Four in five save for their holiday money
                                                                                                                          • Figure 38: Attitudes towards budgeting travel money, November 2016
                                                                                                                        • Budgeting tools can help people understand how much they need to take away
                                                                                                                          • Element of fun in getting the best deal
                                                                                                                          • Credit and Debit Card Usage Abroad

                                                                                                                            • Two out of five use their card for larger costs
                                                                                                                              • Figure 39: Credit and debit card usage abroad, November 2016
                                                                                                                            • Credit cards offer protection for larger purchases
                                                                                                                              • Figure 40: Credit and debit card usage abroad, by method of spending abroad, November 2016
                                                                                                                            • Higher-income households more likely to have dedicated overseas cards
                                                                                                                              • Figure 41: Credit and debit card usage abroad, by household income, November 2016
                                                                                                                          • Important Factors When Arranging Travel Money

                                                                                                                            • Rates and no fees are most important
                                                                                                                              • Figure 42: Factors of importance when arranging travel money, November 2016
                                                                                                                            • Convenience is key
                                                                                                                              • Figure 43: Factors of importance when arranging travel money, by age, October 2016
                                                                                                                            • Over-45s much more focused on rates
                                                                                                                              • Pre-ordering can mean better rates
                                                                                                                                • People using currency specialists prioritise costs
                                                                                                                                  • Figure 44: Factors of importance when arranging travel money, by method of arranging travel money in the last 12 months, November 2016
                                                                                                                              • Impact of Brexit on Arranging Travel Money

                                                                                                                                • Majority plan to arrange travel money
                                                                                                                                  • Figure 45: Intentions to arrange travel money in the next 12 months, November 2016
                                                                                                                                • Four in five will compare providers
                                                                                                                                  • Figure 46: Impact of the recent decline in the value of the Pound on arranging travel money, November 2016
                                                                                                                                • Two in five concerned about future rate drops
                                                                                                                                  • Card users find it difficult to understand impact of falling value of the Pound
                                                                                                                                    • Figure 47: Impact of the recent decline in the value of the Pound on arranging travel money, by method of spending abroad, November 2016
                                                                                                                                  • Online shoppers more engaged
                                                                                                                                    • Figure 48: Impact of the recent decline in the value of the Pound on arranging travel money, by method of arranging/ collecting travel money, November 2016
                                                                                                                                • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                                    • Abbreviations
                                                                                                                                      • Consumer research methodology
                                                                                                                                      • Appendix – Market Size and Forecast

                                                                                                                                        • Forecast Methodology
                                                                                                                                            • Figure 49: Additional best- and worst-case forecast for annual expenditure on overseas trips by UK residents, 2016-21

                                                                                                                                        Companies Covered

                                                                                                                                        To learn more about the companies covered in this report please contact us.

                                                                                                                                        Travel Money - UK - March 2017

                                                                                                                                        US $2,583.33 (Excl.Tax)