Construction of Istanbul’s Grand Bazaar began in 1455, following the Ottoman conquest of Constantinople, as part of an effort to spur economic prosperity for the region. More than 570 years later, the covered marketplace represents one of the world’s earliest shopping malls, remains an active place of business that includes more than 4K shops. One of the top tourist attractions in both Turkey and the world, the Grand Bazaar attracts more than 91MM visitors each year, drawing tourists eager to take part in the unique shopping experience, a key part of which is haggling over the costs of goods sold there.
Though many retailers within the Grand Bazaar now accept credit cards and digital payments, cash remains king within the marketplace, as buyers typically get a better price for purchases made with cash. Despite the world’s growing reliance on digital payments, demand for foreign exchange (FX) services is on the rise among travelers as people seek out increasingly remote and obscure vacation destinations where Internet and digital connectivity are less reliable, and cash continues to be the preferred method of payment.
Remote Travel Destinations’ Popularity
Younger generations, particularly Generation Z and Millennials, have different values from those that came before them, favoring experiences over material goods. As early as 2018, the findings of a survey from Eventbrite found that up to 78% of Gen Z and Millennials would rather spend their money on things such as travel, festivals, and experiences such as concerts over physical goods — a preference that remains ongoing.
The trend is not limited only to younger people, though. Recent travel data shows that higher-income travelers are increasingly gravitating to travel destinations in less-developed countries as well. According to data from luxury travel company Backroads, travelers in 2026 are prioritizing meaningful vacations that are focused on wellness and adventure in destinations that are more remote and off-the-beaten-path. Tourism for destinations like mountain lodges and huts is trending up as much as 170% since 2024. In fact, the Adventure Travel Trade Association notes that adventure travel is among the fastest-growing segments of tourism, with global travel expected to exceed $2T by 2032.
Despite the ease and globalization of digital payment options, travelers’ reliance on foreign currency remains steadfast, particularly as people seek out increasingly remote destinations where Internet and digital connectivity are less reliable.
The following are some of the biggest reasons that people continue to rely on foreign exchange transactions for travel:
- Cash is the preferred method of payment among locals in poorer and more obscure locations, allowing people who pay cash to get greater value. There are also many remote locations where digital payments are not accepted or are unreliable.
- Cash is still necessary when traveling abroad for marketplaces, smaller shops, tipping, and certain types of transportation.
- Cash protects travelers against the possibility of electronic system failures or compromised credit cards or bank accounts.
- Younger travelers gravitate to destinations with favorable exchange rates and tend to be extremely focused on value, including the avoidance of foreign transaction fees charged when currency is converted or acquired in other countries. Airport kiosks typically charge between 14% and 20% for FX transactions, providing CFIs an opportunity to undercut these options and still generate revenue.
Travelers’ ongoing reliance on foreign currency provides a revenue source that CFIs should not overlook. CFIs should consider incorporating FX offerings within mobile apps and digital offerings so that consumers can easily arrange transactions in advance of travel, especially since regulatory changes regarding digital identity wallets have made it easier to add such offerings.
“Even as digital payments expand globally, cash remains a critical part of the travel experience—especially in remote or infrastructure-limited destinations," said John Cavanaugh, PCBB Senior Vice President, International Services. "Financial institutions have a clear opportunity to meet this need by offering accessible, competitively priced foreign exchange services that help customers avoid excessive fees and plan ahead with confidence. By integrating FX into both digital channels and in-branch conversations, CFIs can turn a routine transaction into a meaningful value-add for travelers.”
Helping Customers with Foreign Currency
- Get ready now with quick staff refreshers, simple “Going abroad?” marketing messages, and clear website instructions on how to order foreign currency.
- Encourage customers to order foreign currency one week before travel so they avoid poor airport rates and last‑minute stress.
- Make your institution's value clear: convenient local pickup, transparent pricing, and the safety of dealing with a trusted institution.
Highlighting FX services can also be a good way to strengthen ties with existing customers and to better compete with larger peers. It can be a good springboard to remind small- and mid-sized businesses about FX offerings that can benefit them as business owners as well, such as foreign check cashing services and foreign cash letters. CFIs interested in offering such services may want to consider partnering with third-party providers. For example, PCBB can provide clients the ability to offer foreign banknotes from more than 100 countries without the need to increase operational complexities.
As consumers’ interest in traveling to more remote locations increases, FX services offer an attractive way for CFIs to add a niche revenue source that can also help boost the customer service experience and assist organizations in further cementing ties to customers. With roughly $148T expected to change hands within the US through the great wealth transfer, foreign travel among younger generations may become even more frequent as people within these demographics inherit money.
