£483m Holiday Price Rise After Brexit Vote

Brexit

In the first study of its kind, Holidaysplease examined £100,000 worth of holidays booked immediately prior to the Brexit vote and then re-priced the exact same holiday after the Brexit vote with the same tour operators. The results were as follows:-

 

Findings:-

 

  • 1) Long haul holidays (ie those outside Europe)  had increased in price by 6.9% following the 9% drop in the pound against the dollar.
  • 2) This is a £138 price rise on a £2,000 long haul holiday
  • 3) UK customers will have to spend £438m further a year on long haul holidays per year if the exchange rate stays the same
  • 4) Short haul holidays reveal small price drop of – 0.7%

Charles Duncombe, director of Holidaysplease.co.uk explains the results:-

“If you book your long haul holiday at a time when the pound is weak then your holiday will be more expensive. This is because, usually long haul holiday tour operators will buy the currency required to pay the hotel at the time of your booking. On the other hand, operators who sell European holidays will often reserve their currency at the beginning of the sale season when they need to put prices in their brochures. This will have been many months ago, before the Brexit vote, therefore they can keep their prices low.”

As for the outlook for the future Mr Duncombe says:-

“If I was able to predict the position of the pound over the next 12 months then I need to change job. Something I can say though is that if you are looking to book a short haul holiday, I would probably do it quickly before the hedged currency reserves at the short haul tour operators run out. If you intend to book a long haul holiday, I would keep a close eye on the currency markets and as soon as the pound begins to strengthen I would book. Most importantly, when you choose to book I would get a guarantee from my tour operator that they will not change the price after you make the booking. Under travel regulations operators can change you price even after you book if the currency moves by a substantial amount. So ensure you get that guarantee.”

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