England World Cup Fans Fall Foul of Rate Blindness

England World Cup Fans Fall Foul of Rate Blindness

DHB (June 9, 2006)

FIFA Cup

Thousands of English football fans travelling to Germany to follow the World Cup risk being left out of pocket because they do not know the value of the Euro, according to research released today by foreign exchange specialist Travelex.

Travelex surveyed more than 1,000 football fans across the UK and revealed a significant lack of understanding concerning exchange rates and the value of the Euro abroad. When asked how many Euros there are to the pound, only one fifth (19 per cent) answered correctly. More than a third (34 per cent) of those interviewed were one Euro out, believing that there are €2.4, rather than €1.4 to the pound. A quarter were €0.4 out and one in ten miscalculated the exchange rate by more than €2, stating that they believed there were €3.4 to the pound.

Paul Swainson, Director of UK Retail, Travelex, commented: “It’s clear that there is a high level of ‘rate blindness’ amongst English football fans. The foreign exchange markets can be confusing but unless fans take steps to familiarise themselves with the exchange rates and the cost of certain basic items, there is no question that they are going to be taken advantage of. A fan that is working to an exchange rate of €2.4 to the pound is basically giving away £20 in every £100 that he spends.”

The survey also questioned fans on how much they would be prepared to pay in Euros for common items such as food and drink, accommodation and transport. Again the research revealed a poor appreciation for the value of the currency and exposed the rip-off risk that threatens football fans.

When asked what they would consider to be a fair price for a beer, more than a quarter (27 per cent) stated €10, which is £7.12* in Sterling. One in five would be more than happy to pay between €13 and €16 for a pint (£9.28 - £11.42) and one quarter expected to pay as little as €1 (71p). The average price of a pint in Frankfurt, the venue for England’s opener against Paraguay, is €3.50 (£2.32).

For a meal consisting of a burger and chips, two thirds thought that €31 - €40 (£22.10 - £28.57) would be reasonable. The cost of an average meal in Germany is £8.86**. For a 10 minute taxi ride, €20 - €25 (£14.28 - £17.85) was considered acceptable to more than half of the fans questioned and more than two thirds would think nothing of paying €350 - €400 (£250.00 - £286.71) for two nights in a two star hotel. The average cost of a short taxi ride in Germany is £6.80** and one night in a two star hotel is around £110.00**.

In response, Travelex has a cheat sheet available at www.travelex.co.uk via their currency converter feature. This allows travellers to make sure they can understand exchange rates when abroad. All foreign currency ordered online is subject to the Price Promise which guarantees the best price for foreign exchange or Travelex will refund the difference.

The rate blindness did not extend to all fans however. The research found that some clubs had fans with a better understanding of the exchange rate than others. The most rate aware fans were followers of Arsenal, this year’s European Champions League finalists, who topped Travelex’s league table of savvy travellers. They were followed by Chelsea and Liverpool. Tottenham and Fulham were placed at the bottom of the table, perhaps because of their lack of European football, and uncharacteristically, Manchester United also found themselves in the bottom three.

Travelex has issued 5 tips to help football fans avoid being ripped off when they touch down in Germany:

1. Keep the receipt - When you change your money, keep the receipt so you always have a reference.

2. Get the price first - Always ask for a price up front and calculate the Euro value into pounds (most mobile phones have a calculator so make sure you have it handy).

3. Think about buying before you go - Taking Euros with you will avoid additional charges for using ATMs abroad

4. Avoid making numerous exchanges abroad - Every time you change your money abroad you may be charged.

5. Be careful about changing at hotels - Hotels frequently offer a poor exchange rate and may also charge high commissions for the convenience.

*Based on Travelex’s exchange rates available online at www.travelex.co.uk rate calculated on June 7th.
**Based on research carried out by www.Pricerunner.co.uk in June 2006.I’m quite patriotic – I’m proud to be an Englishman. I always thank the English fans whenever I fight in America. At the moment I have Union Jacks flying out of the windows and I’ll be wearing my England shirt for the games.