The three and a half years between the EU referendum and the UK’s eventual departure from the bloc gave rise to a significant degree of uncertainty. This restricted growth in overseas holidays, saw businesses cut the amount spent on trips abroad and, crucially, saw the value of the Pound plummet. Despite these challenges, travel money providers have continued to enjoy healthy demand for foreign currency, with Brits’ spending overseas hitting a new high in 2019.

It is not just how much people spend that is important, however, but also how they spend. While cash is still king, British travellers are becoming more inclined to use cards when making payments abroad. Prepaid travel cards have been a key area of innovation in the travel market, while digital banks offering free overseas spending have grown to become significant challengers in this space.

This Report looks at the UK market for travel money. This includes discussion of the size of the market for overseas spending by British travellers, with five-year forecasts for both the overall total and the amount specifically spent on holiday. The Report also covers key market drivers, competitive strategies, and analysis of selected brand perceptions. Mintel’s exclusive consumer research looks at the types of payment methods made overseas and the value of spending using each method, the types of providers used to arrange travel money and the timing of when people do this. Finally, the Report considers the impact of different holiday scenarios on payment method choice and attitudes towards travel money, such as concerns about the acceptability of card payments.

This Report looks at the travel money market in the UK. This includes:

• Foreign currency, exchanged either in the UK or abroad

• Prepaid travel or currency cards

• Traveller’s cheques

• Use of domestic debit cards abroad for travel money purposes

• Use of domestic credit cards abroad for travel money purposes.