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The latest developments in dynamic currency conversion

Food provides the key to our holidays, as well as our hearts

DCC Forum

It has often been said that food is the way a person's heart, but as our latest study indicates it could be the key to much more. The cost of a main meal has been revealed as the most popular way for UK holidaymakers to judge a destination's value for money, or indeed its expense. When determining how pricey a location is, many of us tend to think of the cost of an everyday item and use this to make the comparison. Our research shows that there are a range of everyday markers used by holidaymakers, including dinner. There are plenty of websites giving the cost of a pint across global destinations, and 28% of travellers also use this as their benchmark, while 16% stay out of the bars and instead rely on the cost of a coffee. Perhaps more surprisingly, 8% favour the price of a McDonald's meal to make their call on the value of a destination.

Away from food and drink, 15% of holidaymakers favour the cost of a taxi and the same percentage opt to use public transport as their marker. For those in the hospitality and travel industries, it brings about some considerations when thinking about the experience they are delivering to their customers. What is evident from this is that holidaymakers are looking for clarity on their spending when abroad. Whatever method holidaymakers' use, they want to stay within their budget when travelling. Comparing the costs of everyday items and purchases to home, like meals, is certainly one way to do this.

Another way is through understanding the options available to them when making a card payment abroad. Many are still unaware that there are two choices on offer when completing a purchase abroad. They can select to pay in the local currency, where the bank or card provider will determine the additional fees which will be added at a later date along with the exchange rate that will be applied.

Alternatively, there is the option to pay using dynamic currency conversion, or DCC. In this case, the cost will be presented in the customer's home currency with the exchange rate already applied. Offering DCC, merchants have a real opportunity to help deliver clarity to shoppers abroad, potentially making the customer's experience all the more positive and memorable and hopefully enticing them back again!