Due to the pound severely weakening after Brexit was announced on Friday 24th June, and now with the British summer holiday period in full swing, we answer how this slump is affecting British holidaymakers this summer.
Firstly, immediately after Brexit was announced, the pound slumped to the lowest it had been in years. For British holidaymakers, this means that when travelling abroad, especially to popular European destinations such as France, Spain and Greece, that their pound is now worth significantly less than it was before the referendum, meaning they will get less euros and dollars for their pound. The slump of the pound has also meant that the prices of hotels have increased, and that holiday spending money certainly isn’t worth as much as it originally was.
Rules by The Package Travel Regulations let tour operators require a surcharge fee when the prices of package holidays increase post booking. Although it is unlikely that a surcharge fee would be imposed on holidaymakers who have already paid their holiday off fully.The first 2% of the rise must be taken in by the travel company, however, if this were to heighten above 10%, then bookers have the right to cancel with the company. This surcharge fee is imposed in order to cover the fluctuations of currency and if fuel costs rise.
Although this slump in the pound is not overly great for Brits going abroad this summer, it does benefit the holidaymakers embarking on the humble ‘staycation.’ When the pound slumps for foreign holidays, it usually means that it benefits the people in the UK. This revers makes our country look far more alluring to foreign tourists, benefiting the British tourism industry.
Tourism in the UK is one of our biggest incomes, with the industry being valued at 121.1bn a year. Barbara Clark, from Scotland’s tourist agency, Visit Scotland, said “A big percentage of our overseas visitors come from EU countries, so it will be cheaper for them.”
ABTA, the association of British travel agents, said that nine million holidaymakers travelled from EU countries last year to the UK, and that this figure spends 9.5bn a year, making up 44% of all visitors spending in the UK.
Andrew Brown, from Post Office Travel Money, advised British holidaymakers to “watch currency movements very carefully.”
He went on to say “For those who have not yet booked their holiday but are planning to travel abroad during the summer or later in the year, it will be well worth doing some homework before making a decision.
“Choosing a destination where sterling is strong and also where the local cost of living is low could make a significant difference to how far the holiday budget will stretch.”