25 April 2007 High US prices 'defeat strong pound'
Holidaymakers heading to the US to take advantage of the strength of the pound against the dollar have been warned that the high cost of everyday items could wipe out any benefit from the positive exchange rate.
Post Office reports that while those looking to shop for gifts and consumer electronics like the PlayStation 3 or an iPod may make significant savings, the cost of consumables such as drinks and suncream can be much more expensive than elsewhere.
Destinations in eastern Europe, such as Bulgaria, can be over half as expensive for purchasing these essential items when compared to the US.
Kevin McAdam, head of travel services at the firm, advised holidaymakers to take care when comparing the cost of products in different countries.
"It all depends on their relative cost of living and it pays to be aware that favourable currency rates - like those currently available for the US dollar - do not necessarily mean a destination will be cheap," he said.
Earlier this month, the pound hit the landmark value of $2 for the first time in 15 years.
Archive Travel Insurance News Stories
Related Travel Insurance News
26 March 2008 Women 'confident' to travel alone
Women have become more confident to travel to traditional and emerging... [more]
26 March 2008 Paris and Bruges 'are emerging destinations for city breaks'
Paris and Bruges have been named as emerging destinations for city breaks in... [more]
26 March 2008 Princess takes birthday trip to traditional ski resort
Princess Eugenie, daughter of Sarah Ferguson, Duchess of York, and the Duke of... [more]
26 March 2008 Snow falls across Europe
Snow has been falling across Europe in the past week, leaving many traditional... [more]
Get a travel insurance quote today from Travel Insurance Web, comprehensive cover at an amazingly low price.
