And regardless of whether you are travelling right across the region, go on your annual package holiday in the sun, are a business traveller or hop across the border for shopping, things have changed.

With Europe's Economic and Monetary Union (EMU) the currencies of eleven EU countries are now tied together, at fixed exchange rates. Banks and financial markets are using the euro in all their 'eurozone' dealings.

The eleven eurozone members are Germany, France, Spain, Portugal, Ireland, Austria, the Netherlands, Belgium, Luxembourg, Finland and Italy.

Even though euro notes and coins will not be available yet, many goods and services across Europe will be quoted in two prices, the old national currency unit and the euro.

The grand tour

Many banks are offering their customers the facility of doing business in euros, with credit cards, other payment cards in euros, and electronic money transfers.

But holiday makers and business travellers should sit up and take notice of the new euro-denominated travellers' cheques.

It does not matter whether you are a backpacker or business class passenger, people who move around in the eurozone stand to make savings on currency conversion costs by using euro-denominated travellers' cheques.

Euro cheques are exchangeable directly into any of the currencies in the eurozone.

Euro traveller cheques could be the key to cheaper holidays

For example, while a tourist moving around with Deutschmark cheques pays no exchange conversion fee when converting his cheques in Berlin, a conversion fee does apply when converting those cheques to get French francs in Paris.

But a euro travellers' cheque are directly exchangeable - without conversion fees - on both sides of the border and all around the eurozone.

Of course, banks and bureaux de change may still charge their own commission on the transaction.

Stability

For citizens of the eurozone the stability of exchange rates means an end to worries when to get your holiday money.

UK travellers, on the other hand, are still at the mercy of the pound as it fluctuates against the value of the euro and the euro-zone currencies fixed to it.

Euro shoppers

Shoppers armed with euro cheques are now able to border-hop without changing currencies and incurring extra exchange costs.

Stable exchange rates also mean more certainty about prices across euro-zone borders.

Dual pricing means tourists travelling within Europe and buying souvenirs or looking for bargains are able to compare the prices of similar items in different countries of the eurozone.

The price of that leather jacket which you might buy in Italy or Spain can be directly compared in euros.

Jim Tobin from American Express says that it is "much more apparent what the price actually is without getting your calculator out and converting exchange rates."

Prices: a double-edged sword

If the merchant doesn't show the euro price, ask for one - the onus will increasingly be on sellers to compete on the basis of euro prices.

Although unlikely initially, eurozone retailers may even offer discounts to customers paying in euros as the full changeover to euro coins and bank notes in 2002 gets closer.

Across the eurozone, retailers have already promised that prices in euros will not be higher than national currency prices.

Travellers to the EU should also be aware of the possible demise of duty-free retailing on 1 July 1999.

Although this is not part of the single currency changeover, it will mean the shops selling tax and excise-free goods will begin to charge EU citizens duties like value-added tax.

Package holiday travellers

If you are the average annual package holiday traveller, spending a week or two at the one resort without crossing borders, do not think that the euro will not affect you.

One of the reasons for the single currency is to increase competition across European borders. Expect this to be a double-edged sword in coming years, Mr Tobin said.

While airfares and hotel room costs are expected to come down slightly overall, more direct competition is expected to see the cheaper holiday destinations like Spain and Portugal become more expensive over time as prices average out across the eurozone, he said.

If this happens, packages to destinations outside the eurozone such as Turkey and Greece will become more attractive.

Business as usual

Business travellers and others who travel on credit cards will see little difference other than euro figures appearing on their statements.

Like any other traveller, UK businesspeople will be at the mercy of the pound. Purchases will still be converted back to sterling when charged to their accounts, unless they or their company operates a euro expense account.