Can I hedge next year's holiday?

[TomTheTyke]

Morning all, apologies if I'm missing something obvious, but I had a thought which the PH Finance wisdom might be able to answer.

We have wanted to do a European road trip for a few years, had it all booked for 2020....

So we have decided 2023 is the year, we know where we want to go so I've booked all my accommodation for 12 months time, though all with free cancellation in case something else goes wrong with the world in the meantime.

Understandably being in Europe, prices are in Euros and payment won't be taken until nearer the time of the departure.

What this does mean is that things gets more expensive if the value of the pound falls.

With the free cancellation, obviously I could just sack the whole thing off again, but I was wondering would it be possible to buy the amount of Euros now (about £1500 worth), so that I could then sell them next year if necessary and recoup the difference.

Problems being I think commission and poor rates selling back would cancel out any benefit, don't really need £1500 cash in the house (can you buy and hold online?) and is it worth the hassle when a 20% fall in the value of the pound would 'only' cost me £300?

[abzmike]

I think you’re overthinking it. If the value of three pound falls 20% versus the Euro you’ll have more things to worry about than the price of your hotels.

[WelshRich]

One option would be to get yourself something like a Revolut card, stick £1500 onto it and convert into Euro’s using the app - No need for cash, decent exchange rates and a pretty useful card to have when you’re travelling anyway…