Is the TUI Exchange Rate your best option when spending abroad?

When planning a trip abroad, securing the best exchange rate can save you a lot of money. Those little charges quickly add up! TUI Travel Money is a popular choice for exchanging currency, but is it the cheapest way to spend abroad?  In this article, we dive in, breaking down the TUI exchange rate and comparing it with other service providers to see if it is actually a smart option for spending abroad. 

Understanding TUI Exchange Rates

TUI offers travel money exchange services, allowing you to convert British Pounds into foreign currency. But it's important to note their rates include a built-in margin, AKA a hidden fee, so you won’t get the real mid-market rate you see on Google. If you want a better exchange rate that's closer to the exchange rate you see on Google, you can use a  digital bank like Monzo or Starling who both use the Mastercard exchange rate, which is pretty close to the real exchange rate. 

What is the "mid-market" exchange rate? 

The mid-market exchange rate is the real exchange rate you see when you Google a currency conversion. It's the average rate between the buy and sell prices of a currency on the global market.Think of it like this: Banks and money exchangers buy currency at a lower price and sell it at a higher price to make a profit.The mid-market rate sits right in the middle of these two prices—it’s the fairest exchange rate because it doesn’t include any hidden fees or markups.

If you’re converting money, the closer your rate is to the mid-market rate, the better it is. If you want the mid-market rate, but don't really want to open a new bank account or faff around with pre-paid travel cards, you can just add your debit and credit cards to Curve. Curve is a digital travel wallet that gives you the mid-market exchange rate no matter what debit or credit card you use abroad. Plus, it eliminates foreign transaction fees, saving you up to 3% on every purchase abroad. 

Drawbacks of the TUI exchange rate

• Online vs. In-Store Rates – TUI offers better rates for online orders than in-store purchases, so you can end up getting ripped off when paying in store. 

• Currency Availability – They provide major travel currencies like Euros (EUR), US Dollars (USD), and Turkish Lira (TRY).

• Buy-Back Guarantee – You can exchange leftover foreign currency back into GBP, but at a less favorable rate.

• Limited to Cash Transactions – TUI does not offer a travel card, so your money isn’t protected if lost or stolen.

While TUI is a convenient option for cash exchange, their rates are often not the best in the market. For a smarter and more secure way to spend abroad, Curve is the better alternative.

How to beat the TUI exchange rate with Curve 

If you don't want to get stung by hidden fees and bad exchange rates, you might want to consider signing up for Curve. It only takes a few minutes to get started and it's packed with travel benefits that make spending abroad easier, cheaper, and more rewarding. 

• Kill Foreign Transaction Fees Most debit and credit cards charge around 3%. Curve is the only wallet that can stop FX fees so you can use any card abroad without being charged. 

• Better Exchange Rate than TUI – Get the real mid-market rate, not the marked-up rates offered by travel providers like TUI. 

• Free ATM Withdrawals – Withdraw up to £1000 per month abroad with no fees on a Curve Pay Pro+ plan. 

• Earn 1% Cashback – Earn 1% cashback on all foreign spending outside Europe with any premium Curve plan. 

• All Your Cards in One – Add all your debit and credit cards to Curve and spend and withdraw from any account using just one universal card.

• Wallet Security – If your phone or Curve card is lost or stolen, lock your entire wallet in seconds with a tap in the Curve app, protecting your money from fraud and pickpockets.

The Bottom Line: The TUI exchange rate may be convenient, but it comes at a cost. 

The TUI exchange rate might be convenient in the moment, but it might bite you in the bank balance in the long run. Curve offers a simpler, smarter alternative that doesn't involve topping up accounts or opening new bank accounts. 

Download it today and try Curve Pay Pro free for 1 month.