"Travelling to Europe two weeks ago, I handed over £60 cash at the bureau de change in Luton airport. I was surprised when the cashier said he could give me €60 if I gave him another 65p."

That was the experience of Times Online's Gareth Scurlock, who says he'll be avoiding the eurozone until the exchange rate improves.

The pound has slipped further since his trip to Spain and, while rates on the high street are marginally better for travellers, it's almost like-for-like unless you're changing large sums of currency.

At Travelex.co.uk and Marks and Spencer, £100 will buy you €110, while at the Post Office you'll pay £99 for €110.

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BACKGROUND

• Iceland travel prices cut by 50 per cent

• Price war on the high seas

• British Airways’ premium numbers plunge

• The 25 best read travel features of 2008

Related Links

• Holidaymakers suffer as euro surges

• Weekend break in Paris could leave you broke

• Pound sinks to record low as euro nears parity

Helen Warburton, Post Office head of travel, told The Times: “Today’s further evidence of a slump in the value of sterling against the euro, to its lowest ever level, means that holidaymakers will receive 10 per cent less for their pounds than six months ago and 23 per cent less than 12 months ago."

According to the Post Office, a three-course evening meal with wine in a French restaurant will cost around £42 per person this month, compared to £34 a year ago.

Likewise, drinks will also cost more — a cup of coffee in Spain will cost an average £1.12 against 91 pence last year, while a bottle of Heineken that cost £2.65 in Italy last year will cost £3.26 this year. And that's average prices — Britons heading to ski resorts will inevitably pay more.

It's been a steady slide towards parity between the two currencies since the start of the year. The rate at Travelex has slipped from €1.36 to the pound a year ago to €1.11 this week. Julian Neal, global marketing director at Travelex, says it will hit holidaymakers hard.

"With the pound’s steady decline against the euro in 2008, holidaymakers with skiing trips already booked to eurozone destinations this winter will notice that their holiday will be costing noticeably more than this time last year," he said.

Warburton added that it pays to consider European destinations outside the eurozone. "UK holidaymakers looking for better value in Europe can consider some of the eastern European destinations such as Bulgaria or Croatia and Turkey, which have consistently been shown to be cheaper than the eurozone,” she said.

Travelex has advised British holidaymakers heading to the Continent in the coming weeks to order currency online and shop around for the best rates.

In addition it says holidaymakers should avoid using credit cards abroad because they can incur fees for each transaction and often attract unfavourable exchange rates.

Likewise, holidaymakers should avoid ATM machines, or cash card providers that make a charge for withdrawing cash — so limit withdrawals to avoid mounting charges. And, finally, Travelex advises: "Tourists can fall into the trap of exchanging money in hotels, but beware as hotels frequently offer a poor exchange rate and may also charge high commissions for the convenience."

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