HOLIDAYMAKERS in different areas of the country are being charged different rates for changing currency by tour operators and bureau de changes.

Marks & Spencer Financial Services compared the rates available in different UK towns, found that someone in Edinburgh would be charged £362.71 for 500 US dollars by Thomas Cook, while someone in Cardiff would pay just £354.61. People in Manchester would be charged most by First Choice Group, at £357.14 for 500 USD, while those in Bristol got the best deal at £355.39.

Travelex charged £359.93 for 500 USD at a London airport, nearly £5 less than the £364.28 charged in Manchester.

The only groups which charged a flat rate across the whole country were HSBC. and Marks & Spencer Financial Services, on whose behalf the research was conducted.

Andrew Lindsay, of Marks & Spencer Financial Services, said: "It is assumed that there is little disparity in price or practice in the travel money market but, as this research shows, clearly there is a difference and it is well worth shopping around."

But the other currency providers defended the fact that they charged different rates.

A spokeswoman for Thomas Cook said: "Thomas Cook is no different from many other retailers in that the price it charges for foreign exchange reflects local market conditions.

"Where there is a high level of demand for a certain currency locally, we will be able to offer a lower price. This means that the exchange rate and commission charge may differ slightly across the country."

John Domelly, managing director of First Choice retail, said managers were sometimes given discretionary rates on currencies, which they were encouraged to use and accounted for the differences.

A spokesman for Travelex explained that in its case the difference was caused by the arrangement it had as a concessionaire with the airport landlord, which can set down what prices and commission they are allowed to charge.

John Howells, head of foreign exchange services UK for American Express, said: "We believe in the flexibility to be able to respond to the local market needs."

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