In the first “like for like” Brexit price comparison research, online holiday company www.holidaysplease.co.uk found that long haul (ie non European) holidays for UK consumers have risen by almost 7% since the Brexit vote.
- Long haul price rises 6.9%
- Equates to £138 price rise on a £2,000 long haul holiday
- UK consumers going to have to spend £483m more a year on long haul holidays
- Short haul holidays show small price drop – 0.7% price drop.
www.holidaysplease.co.uk reviewed holidays booked by customers in the days leading up to the Brexit vote and then re-priced the exact same holidays with the same tour operators, 10 days after the Brexit vote.
They reviewed a basket of over £100,000 worth of holidays and the results showed that the cost of exactly the same long haul holiday has risen by 6.9%. This is in line with almost a 9% drop in the pound versus the dollar in the month after the Brexit vote.
On a £2,000 long haul holiday this is a rise of £138.
With UK consumers spending around £7bn a year on long haul holidays a 6.9% price rise equates to UK consumers having to spend more £483m a year on their holidays.
However Holidaysplease’s research showed that holidays to European destinations had not increased in price at all. In fact they had fallen by 0.7%.
Explaining the results www.holidaysplease.co.uk director Charles Duncombe said:-
“Usually with long haul holidays tour operators will buy the dollars required to pay the hotel at the time you book. So if you book your long haul holiday at a time when the pound is weak then your holiday will be more expensive. On the other hand operators who sell European holidays will often reserve their currency at the start of the selling season when they need to put prices in their brochures. This will have been many months ago, before the Brexit vote and so they can keep their prices low.”
As for the outlook for the future Mr Duncombe says:-
“If I could predict where the pound will go over the next 12 months then I need to change jobs. What I can say though is that if you are looking to book a short haul holiday I would probably do it quite quickly before the hedged currency reserves at the short haul tour operators run out. However if you are looking to book a long haul holiday then I would keep a close eye on the currency markets and as soon as you see the pound start to strengthen I would book. Most importantly when I do book, I would get a guarantee from my tour operator that they will not change the price after you book. Under travel regulations operators can change your price even after you book if the currency moves by a significant amount. So get that guarantee from them.”