Skiers on the run as sterling goes downhill

Skiers and snowboarders planning a last-minute trip may want to give the traditional Alpine resorts of France and Italy a miss.

Last month, the pound slumped to its lowest level against the euro since the currency's launch in 2002, seriously eroding Britons' spending power.

At the end of last week, tourists wanting to exchange money on the High Street could get rates at between €1.28 and €1.3 to the pound. This compares with 1.41 in January 2007. It means that a holidaymaker changing £500 would now get about €640, compared with about €705 in January last year.

'The euro has continued to strengthen against the pound, but the US and Canadian dollar as well as the Bulgarian lev continue to offer good value for holidaymakers,' says Anthony Hudson, director at travelex.co.uk.

'We recommend travellers keep a close eye on exchange rates before booking their holidays or they might end up spending significantly more.'

Jacqueline Potter, 26, from Clapham, South London, is a keen snowboarder and loves the French Alps. But earlier this month she and her friends chose to ski in Borovets, a resort in Bulgaria, to save money.

'I love skiing in France, but a week's holiday can be expensive,' says Jacqueline, a buying administrator for a large department store. 'I noticed that the sterling/euro exchange rate was really poor so that impacts even more on the overall cost. There was great skiing in Bulgaria and it was a lot cheaper.' Jacqueline says she spends an average of about £900 on a week's skiing holiday in France, but she spent only £550 on her Bulgaria trip.

It pays to shop around for currency. Jacqueline researched the market online before getting her Bulgarian lev through Travelex. Most High Street providers, including Marks & Spencer, the Post Office and Travelex, offer commission-free currency exchange but rates vary widely.

For example, a holidaymaker changing £600 into euros last Wednesday would have received €783.06 through Travelex.co.uk, yet the same order online through postoffice.co.uk would have resulted in just €776.94. Marks & Spencer, via marksandspencer.co.uk, offered €778.20, while americanexpress.co.uk would have provided €773.8.

Using debit and credit cards when overseas is a convenient way to get local currency, rather than changing money at the bank or buying traveller's cheques before a trip.

But those who use their plastic abroad can get badly stung by high fees and charges. The typical charge for overseas usage - sometimes called the loading fee - is 2.75%, according to independent data compiler Moneyfacts, though some can be as high as 2.95%.

A holidaymaker withdrawing £100 in cash from an overseas cashpoint using a typical credit card could be hit for £5.25 in fees. This includes a 2.75% loading fee and a 2.5% cash withdrawal fee. Bank debit cardBig Four fees vary but some can be as high as those associated with credit cards.

Most banks, including the , charge at least 2.75% for cash conversions overseas. The Nationwide Building Society FlexAccount debit card has no fees for cash withdrawals or spending overseas. Nationwide and Post Office credit cards charge no overseas loading fee. The Saga credit card, available for the over-50s, has a 1% loading fee worldwide but no fee when used on the Continent.

WHY INSURANCE COVER IS VITAL A surprising 13% of holidaymakers still travel without insurance, according to Mintel research. And almost one in three do not take out cover for short breaks, says the Post Office. Those who rely on the European Health Insurance Card (EHIC) - formerly the E111 form, which entitles Britons to free or reduced medical treatment in most European countries - could leave themselves open to massive bills should disaster strike.

An EHIC, for example, would not cover a skier against the cost of mountain rescue, air ambulances and repatriation, which could easily run into tens of thousands of pounds. And unlike good travel insurance, the Health Card offers no protection for lost or stolen baggage, flight delays, piste closure or personal liability claims.

'It is important that holidaymakers have travel insurance whether they are planning a two-week beach holiday, a ski trip, or even a short city break to catch some of the Six Nations rugby union tournament,' says Abi Clark, spokeswoman at Churchill Insurance. 'It is easy to book a cheap flight and take off for the weekend and forget about travel insurance. It's vital that skiers have winter sports insurance on top of standard cover.'

A week's insurance for a couple skiing in Bulgaria, including winter sports, baggage and cancellation cover, costs from £24, says insuresupermarket. com.