This year has certainly be an eventful one, and with the United Kingdom voting for a Brexit it will not only effect the changes the way Europe and Britain co-exist, but it will also have a knock on effect on the whole world. With peak holiday season well and truly upon us many Brits each year quite often to travel to various European countries with their passport and EHIC in tow just as they travel to America with an ESTA Visa and their passport which would need 6 months validity. As millions of British holiday-makers travel abroad they will begin to discover the immediate effects of the leave vote.
For travelers the biggest and most immediate impact obviously comes in the form of spending while they’re abroad. It will now cost more to buy foreign currency including the euro. As following the leave reveal the pound began to plummet overnight, hitting its weakest level $1.33 against the US dollar in 31 years. A travel money specialist FairFX, has stated the pound’s value dropped by 5.7 per cent. They also stated the pound then lost 2.6 per cent of its value against the euro, just in the past couple of weeks, and 4.2 per cent of its value against the US dollar. Consumers and holiday-makers exchanging £1,000 before the vote would have received a whopping 1,306 euros but if they did so now they would only receive 1,231 euros a mass difference of 74.60 which is the equivalent to £60.61. This means that Britons will have to spend a little more money every time they purchase things when they visit other countries such as Spain, France, or Italy this summer- unless of course the pound sterling begins to recover, which is slim pickings.
The other concern of large majorities that could lead to more extensive holidays is higher plane tickets. Many are also worried that Britons will lose important air passenger protections once the UK makes the leave form the European Union. Before the vote, a few budget airlines, including Luton-based EasyJet and Dublin-based Ryanair, warned that the rolling effect of a vote to leave the EU could then force them into charging more for airfare if there was to be an increase in jet fuel prices, which are actually tied to US dollars. They would also lose their ability to operate in the EU’s common aviation market. The United Kingdom government will need to begin to make negotiations to aviation market to ensure an open skies arrangement takes place. In short-term, the weaker the pound is the bigger risk that flights could cost more or even discourage people from traveling abroad.
2017 and Onwards
Unfortunately it is rather difficult to plan and predict what could happen long-term. As there are many different things and outcomes that could happen between now and then which will influence the price of flights, rail tickets, cruises, accommodation, business travel and many other things. The value of the pound falling has been predicated by many different organizations and that will affect UK holiday-makers and business in many ways.