Backpackers confused about currencies could choose online travel insurance

According to FairFX.com, those on breaks outside the eurozone struggle to work out how much things cost.

Stephen Heath, chief executive at the firm, said: "The pound has depreciated since a year ago by 18 to 20 per cent. So people have looked at other destinations like Turkey and Egypt and have less knowledge about the currencies in those countries and the value of those."

He added that many were used to leaving their currency exchange until the last minute: "The worst possible place to get your currency is at the airport where the exchange rates are very poor and the advertising that goes with them very misleading."

His comments follow the release of research from Thomas Cook Foreign Exchange, which found that 28 per cent of travellers admit to doing little or no research into how much daily costs are in the countries they visit.

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