After the shock vote of Brexit, the British pound plummeted and caused anyone travelling on holiday last summer to find that it cost them far more than they expected. It was further compounded by certain countries refusing to accept British currency, due to the vulnerability of the exchange rate. Is this going to continue? It is not just about the money, there are several factors that are making this year a bumper year for the Brits to holiday at home.
The pound rallied once the dust had settled, only to be shot down in flames when Teresa May announced the implementation of Article 50 – our official exit from the European Community. So what lies in store for British holidaymakers in the coming year and onwards? It is not just about the value of the pound against other currencies – there are far more implications that most of us will not have thought about, which will harm our pockets.
Reaching the skies
Air travel will undoubtedly increase in price for several reasons. Cheap no-frills flights such as those with Ryanair or Easyjet may well disappear, or no longer be the affordable deals that they currently are. Having made the decision to leave Europe, the UK will have to renegotiate the service agreements with overseas partners in the EU. Nipping off for a long weekend on flights with basic prices of £19 each way may soon be a thing of the past. Fuel charges may also increase, making our annual holidays cost a good deal more without the advantageous bi-lateral agreements. A further scenario, which whilst not expensive to our pockets, but costly to our time, could be extended wait and queues at ‘non-EU citizens’ passport control.
So we switched from the hard-cover blue UK passports, to the flimsier European Union ones with a dark red, more flexible cover. These of course have the EU logo and EU policy attached to issuance – how long will we be able to use them for once our exit is in place? Think of a family of four, who may all need to have passports reissued in the not too distant future – a pretty costly exercise. No regulations have been put in place yet, but if your passport doesn’t have long to run, there will undoubtedly be a sliding scale for renewal – back to standard British passports.
Now this could be one of the advantages – currently there are very little price advantages for purchasing duty free at airports in Europe. Tax-free purchases may give us back a little of what we will be paying out for.
Changes in other rules and regulations
- The EU currently has a firm directive on flight delays and cancellations.
Compensation is compulsory under these directives, but this is almost certain
to change and could result in having long or delayed court cases with
overseas airlines – and who knows if you will win.
- All EU citizens are covered by the EHIC (European Health Insurance Card)
which allows you free healthcare (excluding prescriptions) provided by the
country that you are visiting. At the moment, there are no guidelines as to
whether this will continue, which will almost certainly increase travel insurance
premiums. More money out of your pocket.
- Whilst only a rumour at this moment in time – we may be subjected to visa requirements to travel to Europe! Hopefully, the ‘tit-for-tat’ will prevent European countries introducing such a stupid law.
It has become obvious that currency exchange will not be our only problem – these other costs can mount up considerably when planning a holiday to Europe. When planning your holiday, some of the far-flung destinations are still incredible value for money, such as Vietnam (Vietnamese Dong), Thailand (Thai Baht), Indonesia (Indonesian Rupiah) and other Asian destinations. You will get more for your money and enjoy an incredible experience.