Amid ongoing economic turbulence in the US, new data reveals UK holidaymakers are rethinking their travel plans—steering away from American destinations in favour of sunnier, often more affordable alternatives.
According to figures from travel debit card provider Currensea, spending by UK cardholders in the US fell by 10% in Q1 2025 compared to the same period last year. Meanwhile, popular European and long-haul destinations like Spain, Greece, Italy, and Thailand are attracting more British tourists.
Aside from any political reservations travellers may have about the US, they are looking to travel elsewhere to minimise costs and maximise value as prices and currencies fluctuate. US inflation rose 3.5% over the 12 months to March partly driven by higher costs for dining out. Figures from American Express Global Business Travel also forecast that the average cost of a hotel room in New York will increase by almost 5% during 2025.
James Lynn, Co-Founder of Currensea, said: “Given ongoing uncertainty and increased costs over previous years, many UK travellers are turning their backs on the US and looking to maximise value by visiting other destinations where the Pound continues to perform strongly.
“Holiday prices could be pushed up even more than expected over the next few months so it’s vital that travellers make every penny count. Yet millions are seeing budgets eaten by poor FX rates and extortionate bank fees. UK travellers are forking out an unnecessary £2.7bn in FX fees every year, they need access to simple and transparent spending solutions that cut fees and make savings stretch further. Fortunately, there are travel cards on the market that can reduce holiday costs and give travellers the confidence they are getting as good a deal on their spending money as they do on accommodation or flights.”
Currensea has compiled a list of top destinations that holidaymakers can target to gain the most value from their 2025 trips.
Currensea’s 2025 holiday watchlist*:
- Argentina: £ is 35% stronger against the Argentine Peso than it was a year ago.
- Turkey: £ is 28% stronger against the Turkish Lira than it was a year ago.
- Mexico: £ is 24%against the Mexican Peso than it was a year ago.
- Seychelles: £ is 19% stronger against the Seychellois Rupee than it was a year ago. While it is possible to use US Dollars here, it’s advisable to use the local currency to avoid unfavourable exchange rates.
- Colombia: £ is 20% stronger against the Colombian Peso than it was a year ago.
- Tanzania: £ is 16% stronger against the Tanzanian Shilling than it was a year ago.
- Egypt: £ is 15% stronger against the Egyptian Pound than it was a year ago.
- Indonesia: £ is 12% stronger against the Indonesian rupiah than it was this time last year.
- South Korea: £ is 12% stronger against the South Korean Won than it was this time last year.
- Vietnam: £ is 10% stronger against the Vietnamese Dong than it was this time last year.
Additional research from Currensea reveals Brits’ concerns when it comes to maximising travel budgets:
- One of the biggest hidden costs that impact budgets are high exchange rates. Half (50%) of people worry about getting caught out by high foreign exchange (FX) fees when they are spending money abroad.
- Two in five (43%) are horrified by how much banks charge them while they are on holiday overseas. This leads to six in ten (60%) travellers agreeing that bank charges are too high when they’re spending money abroad.
- Indeed, only around a third of (36%) people are confident they are getting the best possible rate using their bank card overseas.
*Based on the strength of the British Pound against local currencies 22 April 2025 vs 22 April 2024, Morningstar
