Brexit negotiations over the last few months have caused ongoing turbulence for the pound. Talk of moving forward with a deal has seen sterling rise while the threat of a no-deal has seen the currency plummet. Of course, this has had a knock-on effect for holidaymakers and the amount of travel money they get. Whether jetting off to Europe or further afield, new research shows another extension to Brexit is set to shake the exchange rate once more.
The latest extension sees the abolishment of Boris Johnson’s promised 31 October departure date and the call for a general election on 12 December.
The research by GlobeHunters.com shows how the exchange rate is changing over the course of Brexit negotiations and what financial impact this has on British holidaymakers.
According to the findings, a customer heading to Europe before Brexit with £100 spending money would see €130.07.
This figure has dropped €13.69 since, leaving holidaymakers with just €116.37.
In Europe, while a three-course meal would once set travellers back around £43.44, nowadays it would rack up a bill of around £49.40. That’s almost a £6 price increase in just three years.
Meanwhile, a meal for two in a “nice restaurant” in New York City would have once cost £55.50, but in the current climate will set tourists back £64.
The cost of taxis in Paris is estimated to cost 14p more per kilometre now, meanwhile, a New York cab sits at 20p more per kilometre.
Michael Brown, senior market analyst at Caxton FX gave his insight into the exchange rate to Express.co.uk.
He said: “Nonetheless, political headlines will continue to dominate for the next six weeks as the election campaign continues, meaning that the near-term balance of risks for sterling appears tilted to the downside.”
While travellers can’t control the exchange rate, there are some ways they can protect themselves.
The best thing to do is stay aware of any political changes that could have a financial knock-on effect.
Rob Stross, CMO of WeSwap offered some advice for holidaymakers, saying: “In light of this uncertainty, it is always best to exchange money as early as possible.
“Last minute travel money purchases, in locations such as at airport bureaux, are always likely to lead to less bang for your buck as merchants are able to offer whatever exchange rate they like, knowing holidaymakers have no choice but to accept.
“As for those who are concerned about the possibility of the pound’s value falling further due to current political events, it may be best to buy half of your holiday money today and half later. That way, you can assure that you avoid paying higher rates on all of your cash.”