Airport Travelex Rates: A Costly Convenience?

Airport currency exchange services, including Travelex, are known for charging higher fees compared to banks or online services. Customers often feel ripped off when they realise they have been given a lower rate over the counter. For instance, a user on FlyerTalk Forum reported that they got an exchange rate of 8.2106 at Travelex in Manchester Airport, which means for every pound, they were short-changed by 12p. Another user on TripAdvisor reported that they changed AUD for SGD at the Travelex exchange at Sydney Airport, and after fees and a poor sale price, they got a sale rate of about AUD1.05, a much lower rate than what XE Money was showing.

Travelex exchange rates are poor, with customers feeling ripped off

Travelex exchange rates are poor, with many customers feeling ripped off. The company has kiosks in many of the UK's major airports, but these premium locations usually offer worse exchange rates compared to the rates available online. Customers often feel cheated when they realise they have been given a lower rate over the counter.

For example, a customer at Manchester Airport got an exchange rate of 8.2106, which meant that for every pound, they were short-changed 12p. They spent £309 to get 2500 Krona, but that amount should have gotten them nearer 2878 Krona. This means that Travelex effectively charged them £40 extra. Another customer at Sydney Airport changed AUD for SGD. On the day of their departure, XE Money was showing SGD at around AUD1.29, but after fees and a poor sale price, they got a sale rate of about AUD1.05.

A user on a travel forum advised others to avoid Travelex "like the plague", saying that they advertise reasonable rates online, but then advertise "great deals" at collection points, which are actually 20% less. Another user agreed, saying that they got a much better exchange rate from an ATM in Denmark than from Travelex at Manchester Airport.

It is generally advised that travellers who want the best exchange rates should plan ahead and exchange their currency at their local bank or credit union before heading to the airport. Banks typically offer better exchange rates and lower fees compared to airport kiosks, which tend to charge higher premiums. ATMs in foreign countries also often offer better exchange rates than airport currency exchange counters.

Airport exchange rates are worse than those at banks or online

Airport exchange rates are often less favourable compared to what you'd get at a bank or through an online currency exchange service. Airport currency exchange services, including Travelex, typically charge higher fees and offer worse rates compared to banks or online services.

For example, a user on FlyerTalk forum shared their experience with Travelex at Manchester Airport, where they got an exchange rate of 8.2106, which means for every pound they were effectively being shortchanged 12p. They further explained that the £309 they spent to get 2500 Krona should have gotten them nearer 2878 Kronas, but instead, Travelex charged them £40 more.

Another user on ThinMargin compared the exchange rates at the airport for 18 available currencies for a week and then against the average of several reasonably competitive money-changers located in the central business district (CBD), assuming a transaction amount of S$1,000. The largest difference observed was for the Vietnamese Dong (VND). Based on this dataset, for every S$1,000 worth of VND purchased at Changi Airport vs. a reasonably competitive money-changer in the CBD, one would lose approximately 20.7%, or S$207.

Therefore, it is advisable to plan ahead and exchange currency at your local bank or credit union before heading to the airport. Banks typically offer better exchange rates and lower fees compared to airport kiosks, which tend to charge higher premiums. According to a study by The Balance, banks tend to offer exchange rates that are 1-2% better than airport kiosks.

If you don't have time to visit a money changer or bank, you can also consider using a multicurrency account offered by fintech companies like Wise and Revolut, which allow you to spend, receive and hold multiple currencies.

Higher fees are charged at airport currency exchanges

Airport currency exchange services, including Travelex, typically charge higher fees compared to banks or online services. The exchange rates offered at airports are often less favourable than those at a bank or through an online currency exchange service. This is because they come with extra charges to cover their operating costs, salaries, and rent for the physical space.

According to a study by The Balance, banks tend to offer exchange rates that are 1-2% better than airport kiosks. However, this can vary depending on the currency and how much you're converting. For example, you can expect to pay a 5-10% premium on your exchange at an airport kiosk. In some cases, the rate offered by the airport is 7 to 15% worse than standard bank rates.

One way to avoid these higher fees is to plan ahead and exchange your currency before arriving at the airport. If you can, it's usually better to exchange currency at your local bank or credit union before your trip. Additionally, ATMs in foreign countries often offer better exchange rates than airport currency exchange counters. While you might still pay a small fee, this is usually lower than the premium charged at an airport kiosk.

It's worth noting that airport currency exchange rates can fluctuate due to various factors such as market fluctuations, additional fees and commissions, and high demand with limited competition. These factors can contribute to the higher fees charged at airport currency exchanges.

The convenience of airport exchanges comes at a high price

It's easy to forget to exchange your money before you get to the airport. But if you leave it until you're at the airport, it's going to cost you.

Airport currency exchanges, including Travelex, typically charge higher fees compared to banks or online services. You can expect to pay a 5-10% premium on your exchange, depending on the currency and how much you're converting. The exchange rates offered at airports are often less favourable than those you'd get at a bank or through an online currency exchange service.

For example, one person who exchanged £309 for 2500 krona at Travelex in Manchester Airport received a rate of 8.2106, which was effectively short-changing them 12p per pound. They calculated that they lost £40 in the transaction. Another traveller who changed AUD for SGD at Travelex in Sydney Airport also felt they got a poor rate. They changed AUD200 and, after fees and the poor sale price, they received SGD200, a sale rate of about AUD1.05.

A study by The Balance found that banks tend to offer exchange rates that are 1-2% better than airport kiosks.

If you're in a rush, you're likely to get hit with higher fees and less favourable rates. So, if you can, it's better to exchange currency at your local bank or credit union before heading to the airport.

If you don't have time to do that, then you may get a better rate at an ATM in the country you're travelling to. While you might still pay a small fee (usually between 1-3% depending on your bank), this is usually lower than the premium you'd pay at an airport kiosk.

It's better to get local currency on arrival at your destination

It is better to get local currency on arrival at your destination, as airport currency exchange services, including Travelex, typically charge higher fees compared to banks or online services. You can expect to pay a 5-10% premium on your exchange, depending on the currency and amount. The exchange rates offered at airports are often less favourable than those offered at a bank or through an online currency exchange service.

One trick for savvy travellers is to use ATMs in foreign countries, as they often offer better exchange rates than airport currency exchange counters. While you might still pay a small fee (usually between 1-3% depending on your bank), this is usually lower than the premium charged at an airport kiosk. However, it is important to ensure your bank does not charge high foreign transaction fees. It is also recommended to avoid random currency exchange ATMs in airports and tourist areas.

If you are able to plan ahead, it is almost always better to exchange currency at your local bank or credit union before heading to the airport. Banks typically offer better exchange rates and lower fees compared to airport kiosks, which tend to charge higher premiums. According to a study by The Balance, bank exchange rates are around 1-2% better than airport kiosks.

Pre-ordering foreign currency can also provide better exchange rates and lower fees, especially compared to airport kiosks. This strategy works well for travellers who want immediate access to cash for essentials upon arrival. A combined approach can also be effective: order enough cash to cover your first few days, then use a credit card with no foreign transaction fees for larger purchases and bank ATMs for additional cash.

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