Getting your travel money right is one of the most straightforward ways to save money on a holiday — yet airport currency exchange booths continue to issue poor rates to millions of UK travellers every year. Similarly, most UK holidaymakers are entitled to flight delay compensation they never claim, and many underestimate how to budget effectively for their trip.
This hub covers travel money in 2026: where to get the best exchange rates, whether to use cash or card, flight delay compensation rights, holiday budgeting, and how to get currency efficiently before and during your trip.
Where to Buy Currency — Best to Worst in 2026
| Source | Exchange rate quality | Notes |
|---|---|---|
| Specialist travel card (Starling, Wise, Revolut) | Interbank rate — best | No-fee card; use as your main spending card |
| Online currency (Travelex online, M&S Travel Money) | Good — 2–4% below interbank | Pre-order; collect at store or airport |
| Supermarket currency (Tesco, Sainsbury’s) | Good — 2–4% below interbank | Order online for best rate |
| Post Office | Moderate — 3–5% below interbank | Convenient; no margin on Click & Collect |
| High street banks | Poor — 3–6% below interbank | Commission fees reduce value further |
| Airport bureaux de change | Poor to very poor — 8–15% below interbank | Convenience premium; always check the rate |
The interbank (mid-market) rate is the exchange rate you see on Google or XE.com — it is the rate banks use when trading with each other. You will never get this rate exactly, but specialist travel cards come closest. On £1,000 of spending, the difference between a travel card (interbank rate) and an airport currency exchange (10% below) is around £100.
Cash vs Card Abroad — The Breakdown
| Spending method | Foreign exchange cost | Fees | Best for |
|---|---|---|---|
| Starling / Chase debit card | Interbank rate | Zero | Daily spending everywhere |
| Wise debit card | Interbank rate (up to limit) | Small fee above limit | Spending + withdrawals |
| Revolut (standard plan) | Interbank rate (weekday limit) | Weekend markup applies | Everyday spending |
| Local cash (bought online) | 2–4% below interbank | No | Markets, small vendors, tips |
| High-street bank card | 3–6% below interbank | £1.50–£3 per transaction | Avoid |
| Credit card with no foreign fees | Interbank rate | None | Large purchases (Section 75) |
For most destinations in 2026, card payments are accepted widely. Keep €50–€100 (or equivalent) in cash for emergencies, market shopping, and tipping in restaurants where card machines are not at the table.
Flight Delay Compensation — Your Rights
| Flight type | Delay threshold | Compensation amount |
|---|---|---|
| Under 1,500km (e.g. UK–Paris) | 3 hours or more | £220 per person |
| 1,500–3,500km (e.g. UK–Canaries) | 3 hours or more | £350 per person |
| Over 3,500km (e.g. UK–USA) | 4 hours or more | £520 per person |
This applies to flights departing from UK airports on any airline, and to UK-arriving flights on UK or EU airlines. Claims go to the airline first; if rejected, to CEDR (the airline’s approved arbitration scheme) or the CAA. Most airlines have online forms; alternatively use a free tool like Which? or the CAA’s complaint tool.
Important: You can claim for delays going back 6 years in England and Wales. Many travellers have unclaimed compensation from previous trips.
Worked Example: Holiday Budget
Scenario: Hannah and Tom plan a 10-day trip to Lisbon, Portugal (peak season).
| Budget item | Cost |
|---|---|
| Flights (return, 2 people, booked 4 months ahead) | £280 |
| Accommodation (Airbnb, central Lisbon, 10 nights) | £750 |
| Daily food/drinks/transport (2 people, £80/day) | £800 |
| Activities (day trip, entry fees, etc.) | £200 |
| Airport transfers + travel insurance | £120 |
| Total | £2,150 |
Exchange: They use Starling cards abroad — zero transaction fees on roughly £800 of card spending. They save approximately £48 compared to using their regular bank cards (assuming 6% effective cost). They also claimed £440 in compensation for a delayed return flight.
Using Credit Cards Abroad
A credit card with no foreign transaction fees (such as a Halifax Clarity or Barclaycard Rewards card) gives you the Visa or Mastercard interbank exchange rate — comparable to the best travel debit cards. The added advantage is Section 75 protection on purchases over £100, which can be valuable for booking excursions, car hire, or accommodation while abroad. Pay the balance in full each month to avoid interest charges that would outweigh the exchange rate benefit.
What This Cluster Covers
| Your question | Best starting point |
|---|---|
| Best way to exchange currency | Best Way to Exchange Currency UK |
| Full travel money guide | Travel Money Guide |
| Where to buy travel money | Where to Buy Travel Money UK |
| Cash vs card abroad | Cash vs Card Abroad UK |
| How much travel money do I need? | How Much Travel Money Do I Need? |
| Claiming flight delay compensation | Flight Delay Compensation UK |
| Summer holiday budget guide | Summer Holiday Budget UK |
| Summer holiday money tips | Summer Holiday Money Tips |
Related Hubs
- Travel Insurance hub — covering your holiday from cancellation and medical costs
- Consumer Rights hub — flight delay claims and package holiday rights
- Budgeting hub — planning your holiday savings