The pound has continued to gain strength against other currencies, meaning British holidaymakers can enjoy a much better exchange rate this summer.
One pound will now buy Brits around 1.20 in euros – an increase of nearly 10% on the same time last year. This means that a family exchanging £500 will get around £50 more for their money.
But it is not just in the eurozone that Brits can take advantage of the strong sterling. The pound is also strong against the US Dollar.
Those opting for a trip to the US this year will get around $160 for £100, compared with just $142 for the same price last year.
The pound’s strength against the euro has been put down the economic downturn blighting the eurozone, as well as political uncertainty in some countries.
“It’s good news for Britons buying currency ahead of a trip to the eurozone,” said a spokesman for foreign exchange firm Travelex.
“Weeks of speculation over the future of the euro, Spain’s economic crisis, and the political uncertainty in France and the Netherlands, have seen the value of the euro fall to a level not seen for years.”
There is debate over how long the pound’s strength will last, with some warning that it could drop to reduce the burden on exports.
“We would advise those looking to exchange sterling to be wary of the recent pound strength and look to exchange as soon as possible,” said Stephen Hughes, director of currencies.co.uk.
“It may also be worth considering a forward contract to fix the exchange rate at its current level,” he added.
But other industry experts said that the strength of the pound could continue for some time, and even improve in the future.
“Buying euros must be tempting right now, but I think the UK economy is in much better shape than the eurozone so there may be more of a rally to come,” said Chris Towner, director at currency broker HIFX.
There was also good news for holidaymakers heading to European countries outside of the eurozone, with the pound rising against a number of other currencies.
Since last summer, the pound has risen by 14% against the Turkish lira, 16% against the Polish zloty, and by 12% against the Croatian kuna.
One of the best ways to take advantage of the improved exchange rates is with a prepaid travel money card. By using one of these, you’ll be able to secure the good exchange rate and keep it for as long as you have the money on the card.