With Summer 2016 and the holiday season upon us, although it isn’t apparent with the British weather, UK holidaymakers are set to venture abroad for breaks over the next few months with the majority travelling to Europe. The question on everybody’s lips is: What will the effect of Brexit have on my holiday to Europe? Let’s explore…
Will the cost of my holiday increase?
Sterling is at it’s lowest level for years which clearly has an effect on exchange rates – this therefore means the cost of anything abroad from a quick lunch to a 5* star stay in a luxurious hotel will inevitably rise. In the short term, we have seen the value of the pound drop drastically but understand it is set to rise in the distant future however, the Leave Vote motivates the Treasury to make a prediction that we could see a decrease of anything up to 15% which seems to be the be the case! We really need to keep an eye on the euro and the dollar as these are the key rates to the cost of our travels abroad!
What about cheap flights?
Since the 1990s, flights have halved in price due to “The Freedoms of the Air” which are rights governed by numerous global aviation authorities to ensure any airline can travel within another country’s airspace without obstructive restrictions. These rights gave a number of value led airlines a huge opportunity to broaden their scope for travel which in turn, increased competition for the bigger and more dominant businesses like BA. This all sounds too good to be true – right now, it is! The Brexit result will no doubt affect how these rights are governed and it is potentially likely that all flights to and from the UK into Europe will need to be negotiated. If this was to be the case, less airlines will be able to travel freely and therefore cost will increase (like the pre 1990s).
Do I need a new passport?
All UK passports have “European Union” displayed on the cover – this will continue to be the case and so passports will not need to be renewed for the time being.
The changes Brexit will bring to the UK are still unconfirmed but questions will be answered in the near future I’m sure! A key effect it will have is on our holiday affordability which is no doubt at the forefront of everyone’s mind – is it yours?
Alex Rowbottom, Head of Destination Retail, Airports, BIDs & Facilities Management, Foundation Recruitment