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BREXIT WILL MEAN BIG INCREASES IN THE COST OF YOUR HOLIDAY ABROAD
Industry: Events       

The uncertainty around whether Britain will stay in Europe is already having an impact on the value of the pound and if the decision to leave is made, a big impact on the cost of your holidays

(TRAVPR.COM) UK - May 25th, 2016 - There is little doubt that the uncertainty caused by a vote to leave the EU will cause the pound to fall. Just look at what happened a few weeks ago, when polls revealed the referendum was too close to call…the pound fell to below 1.40 against the dollar. Then when President Obama made his speech in favour of the UK remaining in the EU, the pound rose another 5 points.

Even those who want to leave the EU agree that the uncertainty will cause the UK currency to fall in the short term. The Governor of the Bank of England and other key figures warn of the potential collapse in sterling if we leave the EU.

So, if the pound does plummet, what does that do to the price of your holiday this year? Well, if you have booked through a tour operator, you will need to read the terms and conditions of your booking, but the chances are that your holiday will increase in cost, because the tour operator will have to use more pounds to pay the overseas suppliers of your accommodation, food and other services.

If you have booked flights and accommodation and other services direct on the internet and not yet paid in full, it will certainly cost you more to complete your booking.

Another big effect will be in the purchasing power of your pounds…you will need to spend lots more pounds to buy the local currency.

But the biggest effect will be for next year. When tour operators and airlines price their holidays and flights for 2017, they will be using exchange rates that will be a lot lower than they were 12 months ago… so the cost of overseas holidays will increase.

Economists quoted in the Financial Times vary with how much the pound will fall, but some have put it as high as a drop of 34% against the euro.

So if you don’t want to pay more for your holidays abroad, that is one good reason to vote Remain. And if the vote on referendum day is to remain, the pound will rise and your holiday this year and next will be cheaper than it would be if we leave.

David Stitt

Managing Director

Gap 360 Ltd

Tunbridge Wells

Gap 360 is a leading UK provider of gap year travel and adventure holidays: www.gap360.com 

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CONTACT INFORMATION
Name: David Stitt
Company: Gap 360
Phone: 01892 527392
Email: marketing@gap360.com
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