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Brexit – will holidays cost more in the future?

Following the Brexit vote, sterling has fallen to its lowest value against the dollar and the euro for many years. The immediate impact will be clear when spending money at your resort. That drink will now cost 10-15% more than before the vote. How many, if any tour companies will impose surcharges is unclear. As most companies will have hedged currencies, the likelihood of surcharges this year is probably low, but be prepared for increases next year as they pass on costs. A similar situation applies to flights. Aviation fuel is priced in dollars and as it is a major cost of airlines, you can expect it to be passed on to the traveller.

Post Brexit

Longer term there is a risk that if our Brexit negotiators fail to retain the open skies arrangements. This could restrict the freedom of budget airlines. Some European countries have been very supportive of their flag carrying airlines so may welcome an opportunity to curtail the budget carriers such as EasyJet.

If things go wrong, we could also be out of pocket after Brexit. The EU has been a strong defender of consumer rights by introducing automatic compensation in the case of disruption, legislation not popular with the airlines. We will need to see if our government comes down on the side of the industry or the consumer.

How to avoid

So, with the cost of travelling abroad inevitably increasing, a holiday at home is looking more attractive. Although the UK cannot guarantee the sun like the Mediterranean resorts, our tourist areas all have plenty to offer.