How does the Greece debt crisis effect UK holidaymakers?

Despite EU leaders agreeing a deal to help bail out the Greek Government’s debt crisis this may just be the start of problems for the Euro. Other economies such as Spain, Portugal and Italy are saddled with massive debts are likely to have to enact strict austerity measures in order to contain the situation.

If the Euro does come under pressure what does that mean for UK travellers?

Most travellers would think that it is going to help as they travel to Europe their spending money will go further as the Euro weakens against the pound.

However because the UK is so dependent on trading with Europe the pound has also been hit which has meant both the Euro and the Pound have both slipped against the dollar. This means that travellers from the UK to the USA are going to find it very expensive.

As the pound weakens it is only a matter of time before UK tour operators are going to have to put up prices as the majority of their contracts are in dollars or the domestic currency where the hotel is based.

Our advice therefore for UK travellers is to book early with operators before they have to put up their prices. If you book early then hopefully by the time you travel the pound will have rallied and your spending money will go further. Also by booking early it gives you longer to watch the currency markets and to buy your foreign currency as soon as the pound reaches a reasonable level.

Personally, I use a windows desktop application that gives me currency rates every day and when they hit a certain level I buy my currency. Ok the amounts I buy aren’t going to set the markets racing but as they say every little helps!

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