Losing £££s on currency mistake and can't get out!

Hannah4518

I'm in desperate need of advice please.


I accidently created a massive currency position and can't get out now as GBP strengthens against USD


I over booked a bunch of hotels for our holiday in Sept18 (itinerary wasn't finalised) and put up £6000 in deposits. I thought I could always cancel the reservation, so booked a bunch and forgot about them. There's a lot of us and I booked random days here and there so for each day and room I paid a deposit!


That was back in late 2017 when the rate was 1.28


Now I have tried to sort out my reservations and cancel the ones I don't need (most of them) but finding I'm getting refunded at 1.39


So once I cancel all the ones I don't need, I figure I will lose several hundred pounds and maybe even a grand if the rate moves against me even more I've been so stupid I didn't realise until now.


Should I cancel them and take the loss? Since I have now finalised my itinerary.


Or should I wait since I have 7 months still and hope volatility weakens sterling and pick a better time to cancel?


I know this kind of question is like asking what are the winning lottery numbers but please tell me what you would do in my shoes?

stevie11

I would explain to the other parties that due to the fluctuations in the exchange rate that unfortunately you are losing out by what looks about £400, therefore by cancelling can that be split by x number in the party/group so you are minimising your actual loss.

Otherwise hold on to the rooms and consider cancelling nearer the time once you have finalised your itinerary. The rate may go up or down who knows. Unless you can find cheaper accommodation you may end up paying more for your accommodation so think about your actions carefully.

Good luck.

Hannah4518

I have now finalised my itinerary so know which hotels I don't need. I was also thinking to hold onto them purely hoping that the rate might move favourably (if only for a week!) and I can cancel. But if it moves unfavourably I will be stuck into the position and may have to cancel at a higher loss.


Splitting the loss is not really an option. It's all family and it's my turn to pay.

stevie11

Well the majority of us travelling to the US hope the exchange rate goes up in our favour, not many want it to go down;)

Whatever you do make sure you cancel the bookings you don't need before the cancellation deadline to avoid having rooms you don't need.

Only you can decide what loss you will accept and also peace of mind that your bookings are cancelled.

Hannah4518

stevie11 wrote: »

Well the majority of us travelling to the US hope the exchange rate goes up in our favour, not many want it to go down;)

I know, I'm totally gutted that sterling getting stronger means "unfavourable" in my current predicament, I would otherwise be celebrating the improving exchange rate!

stevenhp1987

Why did you book multiple hotels for the same day and therefore the need to cancel them?

photome

stevenhp1987 wrote: »

Why did you book multiple hotels for the same day and therefore the need to cancel them?

I often do the same for Vegas hotels.

I have won some and lost some but only a few pounds either way ,never for as many bookings or as much as the Op it seems.

OP its you choice The so called experts forecast it will keep going up after March (typical we go in March) and then stay around 1.5 for a while

koalakoala

You must have known there was this risk?

Hannah4518

photome wrote: »

OP its you choice The so called experts forecast it will keep going up after March (typical we go in March) and then stay around 1.5 for a while

I did read that too. Not sure if I should hold out for some bad news related volatility or if that's wishful thinking

koalakoala wrote: »

You must have known there was this risk?

I didn't even think about it I booked them at such a low exchange rate and left them for so long. And I've known for a while that rates are going up, but didn't make the connection until yesterday

iltisman

Hope for a snap election and a Corbyn win. That will put you in profit, albeit in worthless GBP.

Voyager2002

iltisman wrote: »

Hope for a snap election and a Corbyn win. That will put you in profit, albeit in worthless GBP.

It would only reduce the value of the pound if currency dealers were poor economists. In the medium term a Corbyn government would be the best thing for business since Tony Blair.