Ryanair’s hidden costs in currency exchange

The no-frills airline has known in the past and targeted by consumer watchdogs because of their hidden charges, but the latest one seems to be very sneaky indeed. With its currency conversion system it uses to charge residents of the UK in British pounds they could make up to £7 per £100 spent with them. If UK passengers have booked a one-way flight back to Britain the cost has usually been in euros and this incurs an extra charge with credit and debit card companies. The new system being brought in by Ryanair is being marketed as a good thing for British customers who will now not be charged the extra by their bank.

However, recent research into the costs of flying with Ryanair showed that the bank charges worked out to be less than what Ryanair was offering their passenger with the new currency converter system. The amount could be up to seven per cent more than the normal conversion rate offered by banks. This is seen as another way the low-cost airline is trying to increase their revenues. The airline makes charges for almost all of their services except to use the toilet, but that was mentioned last year as a bit tongue-in-cheek by the chief executive, Michael O’Leary.

This type of charge is a growing trend across Europe especially in the most visited place by Brits, Spain. Hotels, shops and restaurants are all using similar systems to charge people using foreign cards, but the consumer has the right to be billed in local currency, which is often the better deal.