Brits splash the cash in the USA ahead of Thanksgiving and Black Friday weekend

FairFX reveals spending habits of Brits holidaying in the USA in the weeks since the travel ban was lifted

• Splashing the cash: More than a fifth (22%) of Brits’ transactions in the USA so far have gone on hitting the shops
• Pulling out all the stops: Luxury Florida resorts (£4,884), Visits to Walt Disney World (£2,969), a splurge at Bloomingdale’s New York (£2,886), indulgent treats at Gucci (£1,650), restaurant bills (£600) and wineries (£590) among the big ticket items Brits are spending on in the USA.
• Brits are choosing the Sunshine State, with Orlando topping the tables, with a third of all transactions (30%) made in the County as well as the most money spent (28%), with Kissimmee, Naples and Miami also making the top 10.
• FairFX urges travellers to plan ahead and monitor exchange rates ahead of trips to the USA to get more for their money as the pound dips against the dollar.

British travellers have been splurging in the USA since the travel ban was lifted this month, with a fifth (22%) of total transactions made by Brits in the USA going on shopping, research by travel money expert FairFX reveals.

Taking advantage of opportunities to indulge ahead of Thanksgiving and Black Friday weekend, Brits are treating themselves to lavish high end purchases at stores like Dior, Yves Saint Laurent, and the famous Tiffany & Co in New York City.

Spending data reveals some of the extravagant purchases so far at Bloomingdale’s New York (£2,886), Gucci (£1,650), William Sonoma (£1,164) and a specialist glove store, Sermoneta gloves, in New York City (£381).

But Brits are still returning to favourites like Macy’s, Bloomingdales, Levi, Bath and Body Works, Trader Joe’s, and Sephora which aren’t available in the UK. With Wal-mart making up 2% of all transactions in the USA.

THE CITIES WHERE BRITS ARE SPLURGING

Orlando is the top choice for British travellers, as families flock to return to Disney World and Universal Studios, with almost a third (30%) of total transactions made by British travellers to the USA being made there.

Meanwhile, New York is another popular destination with nearly a quarter (23%) of all transactions made in the Big Apple, followed by Las Vegas (12%), Chicago (4%) and Los Angeles (4%) with travellers opting for big cities and winter sun.

Spending data reveals that attractions like the Empire State Building, Top of the Rock, the Kennedy Space Centre and the Grand Canyon are some of the top sights being frequented by Brits.

The USA Cities where Brits are spending the most
Rank	City	% Amount of Transactions	City	% Amount of spend
1	Orlando & Orange County	29.9%	Orlando & Orange County	28.1%
2	New York & Brooklyn	23.33%	Las Vegas	25.1%
3	Las Vegas	11.64%	New York & Brooklyn	18.7%
4	Kissimmee	4.36%	Naples	4.5%
5	Chicago	3.93%	Kissimmee	4.2%
6	Los Angeles	3.93%	Miami	3.8%
7	Naples	3.28%	Los Angeles	2%
8	Boston	2.62%	Boston	1.7%
9	San Francisco	2.62%	Chicago	1.3%
10	Nashville	2.62%	Nashville	1%

Unsurprisingly, food is also making up a significant chunk of Brits’ spending, with more than 40% of transactions made at restaurants, grocery stores and fast-food restaurants. Some are going all out with extravagant meals, including a £600 bill at a famous Las Vegas restaurant, and a £454 bill at a crab restaurant on Miami beach.

But Brits are also favouring their classic American favourites, with Dunkin Donuts, Chipotle, Chick-fil-a, and the renowned Joe’s Pizza in New York being popular choices on their return to the States.

DEMAND FOR THE USA

FairFX saw cash sales of US dollars increase by 157% on last month in the weeks ahead of the USA reopening.

Travel companies also saw a spike in bookings for trips to the US in the weeks following the long-awaited reopening date announcement, making the US the second most in demand holiday destination for Brits after Spain. But despite demand, Brits’ holiday money has lost value over the last month as the pound dipped against the dollar as the US reopened. The market exchange rate has dropped by 2% over the past month, a difference of around £16 less for every £1,000 exchanged. Fluctuations like this highlight the importance of locking in rates in advance, using the likes of a prepaid currency card.

Ian Strafford-Taylor, CEO of FairFX said: “British travellers have been indulging in the USA in the weeks since the travel ban lifted and this is reflected by lavish holiday spending habits.

“The pent-up consumer demand is to be expected, but it’s easy to get carried away and blindsided by the unfavourable exchange rates we’re seeing between the dollar and pound at the moment.

“Those jetting off to the US have already lost out, with the pound dipping against the dollar in recent weeks, leaving them with a smaller pot to spend on their trips. Exchanging money in advance or locking in rates on a prepaid travel card really is the only way for Brits to secure their rates and capitalise on the pound when it’s at its strongest.” 

FairFX’s top tips for making the most of your holiday money

1. Track currency: Keep a close eye on currency movements to help you buy at the optimum time. Set up a currency tracker such as the FairFX rate alert which will notify you when rates are on the rise, so you can take advantage.
2. Lock-in rates: If you know you’re going to be travelling, make sure you plan ahead. Load a prepaid currency card ahead of time to lock in rates and protect yourself from any potential future exchange rate fluctuations. If you’re happy with the current rate on offer, buy your currency now to guarantee that rate for your holiday.
3. Buy wisely: Don’t leave changing your travel money until the last minute. Exchange rates at airports can be up to 30% more expensive meaning you could lose over nearly £150 of cash for every £500 you change.
4. Cards: Debit and credit cards are good backups but beware of ATM and transaction fees as well as what exchange rate you’ll be forced to use. Instead, use a specialist currency card or a card designed for overseas spending like a FairFX Currency Card which is free to use in shops and restaurants.
5. Always use local currency: If you have the option of paying – or withdrawing cash – in pounds rather than the local currency, always say no. This allows the other party to decide the exchange rate, a process known as Dynamic Currency Conversion, and it’s unlikely the rate they decide on will be in your favour. Investigations from FairFX found that unsuspecting holidaymakers collectively pay out £490m in currency conversion fees.