Currency exchange - different rates at 'shop' and online

TELLIT01

Can anybody explain the logic of the different rates if you walk up to Eurochange (for example) for currency or order online for same day collection from the same place?  I'm currently seeing a 4 cent difference between the rates, which is a potentially considerable sum if purchasing a large quantity.

Please don't come back saying you shouldn't use cash, that's not the question. :-)

eskbanker

It's just one of many examples where advance booking secures better rates than are available on walk-up business, especially in the travel industry such as flights, trains, ferries, etc, and car parking.

'Early bird' discounts will often be offered in other environments too - such differential pricing is legal, and often helps businesses with capacity planning, etc.

bagand96

Those reserving online are far more likely to shop around so the bureau will offer a more competitive rate.  Walk up customers are more likely to be purchases out of necessity or convenience, unlikely to shop around or really care what the rate is, so they can make a few % more.

Always astounded at the amount of people walking up to bureaus in airports and blindly buying Euros at awful rates, getting less than €1 to the £1 a few weeks back!

DullGreyGuy

TELLIT01 said:

Can anybody explain the logic of the different rates if you walk up to Eurochange (for example) for currency or order online for same day collection from the same place?  I'm currently seeing a 4 cent difference between the rates, which is a potentially considerable sum if purchasing a large quantity.

Please don't come back saying you shouldn't use cash, that's not the question. :-)

Those that shop online are planning ahead, at least a little, and are more likely to be looking at different options and be price sensitive. 

People that just rock up are unlikely to go for a tour of all 12 exchanges in the city and so are a captive customer who's less price sensitive. 

TELLIT01

Cheers folks.  That makes sense.