Tips for stretching holiday money

Follow the pound. Consider locations where the pound is strongest to help explore new places for less.

Plan ahead. Keep an eye on rates and pounce when the pound moves in the right direction.

Set up a tracker. Currency firms such as FairFX, Moneycorp and Travelex offer free holiday money alerts that email travellers when rates improve.

Lock in rate. Pack a prepaid currency card. These usually offer competitive rates so you can top up when the exchange rates are strongest, lock in to that rate and use it like a credit or debit card overseas. Among the best are FairFX and Travelex. Revolut’s Mastercard is cheaper still as it uses the market rate that banks charge each other and there are no fees for spending or making cash withdrawals up to £200 worth of currency.

Avoid purchasing at the airport. An airport bureau will cost up to 15 per cent more. If it is the only option left, try to book in advance online and pick up at the terminal as it is cheaper. Compare exchange rates at websites TravelMoneyMax and MyTravelMoney Pack suitable credit cards for overseas spending. Among the best are Creation Everyday Mastercard and Halifax Clarity MasterCard.

Beware of the double exchange rate ruse. Hotels, shops and even cash machines will ask if you want to pay in pounds rather than the local currency. Comforting as this seems – just refuse.