UK Travel Money Market Report 2025

Brits are expected to spend more abroad over the next five years, driven by sustained interest in international travel and rising average expenditure. While cash remains the top choice for payment abroad, the landscape is evolving.

UK Travel Money Market Landscape

Cost of living pressures remain a challenge to the market. While 44% of travellers plan to spend more on their next overseas holiday, price sensitivity is heightened. Travellers increasingly embrace a dual trend of increased holiday spending abroad paired with mindful, cost-conscious choices.

This dual trend is especially evident among under-35s. 64% of this group plan to spend more on their next trip abroad, while 81% say they like to set a budget for daily holiday spending. Additionally, 56% have opted for destinations in the past year that offer better value for money. By offering competitive exchange rates, tailored perks, and app-based tools that reward budget-friendly behaviour, providers can attract these cost-conscious yet experiencing-driven travellers.

• UK travel money market size: Mintel estimates that Brits spent £77.9 billion abroad in 2024, mainly driven by sustained travel demand and rising prices.
• UK travel money consumer insights: Only 39% of travellers rely solely on cash, with a range of card options having become popular. This indicates a shift in the perception of cash, which is expected to continue to evolve with further digitisation of payments.

UK Travel Money Market Report – What’s Inside?

Key Topics Analysed in the Report

Report Scope

This report examines how people spend money abroad. The main sources of travel money are foreign currency, credit and debit cards, prepaid cards and travellers’ cheques.

Key definitions are as follows:

• Foreign currency – currency obtained by exchanging pounds sterling, either in the UK pre-departure (at a bank, bureau de change, or the Post Office, etc) or at a destination overseas.
• Credit cards – spending on these cards overseas usually involves extra transaction fees of up to 2.99%, typically on top of the currency exchange rate set by the network payment processor, ie Visa, Mastercard and American Express. There are exceptions, eg Nationwide’s credit card offers worldwide commission-free purchases. Credit card issuers also tend to charge a fee for cash withdrawals, typically 2.5%-3% (or minimum £3). Some banks offer special travel credit cards or credit cards with extra travel perks, such as no charges on spending abroad or overseas ATM withdrawals (eg Barclaycard Rewards credit card, Halifax Clarity Credit Card). Nationwide and Aqua also don’t charge for overseas purchases. The network payment processor sets the currency exchange rate, ie Visa, Mastercard and American Express.
• Debit cards – most debit cards issued by the main high street banks charge a transaction fee (typically 2.79%-2.99%) on spending abroad. Some will not charge any additional fees on card spending abroad, although these tend to be cards linked to fee-paying current accounts (eg Nationwide’s FlexPlus account, TSB’s Spend & Save Plus). Debit card cash withdrawals made overseas also typically come with a transaction fee (typically around 2% or minimum £3). However, several challenger banks (including Monzo, Starling and Revolut) offer debit cards that do not charge extra for spending abroad or cash withdrawals (although there may be a daily limit imposed).
• Prepaid cards – are designed to be pre-loaded with cash (usually pounds, euros or US dollars) and then used in the same way as debit and credit cards (ie with a PIN) to pay for goods or withdraw cash from an ATM while abroad. The exchange rate is set at the time the card is loaded. As with travellers’cheques, a lost or stolen card can be replaced, and the balance is protected. A prepaid card is not linked to a bank account (like a debit card) and does not have a credit facility (like a credit card), meaning the cardholder can only spend the amount put on the card.
• Travellers’ cheques – pre-printed, fixed-amount cheques, available in numerous denominations and currencies, such as euros, US dollars, Canadian dollars, pounds sterling and Japanese yen, which can be exchanged for local currency. They are protected against loss or theft.

Meet the Expert Behind the Analysis

This report was written by Saltanat Kuermannal. Saltanat joined Mintel in October 2023 as a research analyst in the financial services team. Prior to joining Mintel, Saltanat has worked as a consultant in the real estate sector. She has a PhD in Development Studies with trained backgrounds in Anthropology and International Politics.

Brits are value-driven when choosing how to spend abroad, but many are looking to spend more in the coming year. Providers need to offer competitive rates and convenient services.

Saltanat Kuermannal
Financial Services Analyst