The value of the euro has fallen against the pound in the wake of Greek and French elections, so anyone heading to mainland Europe for a holiday could get more for their money than last year.
For example, £100 will now buy about 120 euros, compared with about 110 euros last summer – and the highest exchange rate for more than two years.
The strength of the pound has prompted some experts to advise holidaymakers to stock up on foreign currency sooner rather than later. In other words, buy your euros now even if you are not going away until August.
However, others expect the pound to continue its rally, so those who wait could make further gains.
Whatever you decide, a prepaid currency card is one of the easiest ways to lock into today’s exchange rates. You simply load up a card with euros and then spend it when you wish. But make sure you compare card fees and charges to get the best deal.
It’s worth checking out the exchange rate if you are travelling further afield, too. Sterling is currently running high against a number of currencies including the dollar and the Turkish lira.
Naomi Caine was editor of The Sunday Times Money section for six years before she moved out of London to bring up a young family. She now juggles two children with a freelance career, and has written for a variety of publications, including MSN, Yahoo, The Times, The Sunday Times, Which? Money, Money Week and The Sunday Herald.