Good and bad news for us British holidaymakers, as the pound has decreased in value against several of the major foreign currencies. However, new research has found that this will not necessarily mean that your holiday will be more expensive. Recently, the pound Sterling hit the lowest rate in 13 months against the Euro and other currencies in Europe and this could make booking a Spring or Summer getaway more expensive.
One usually cheap destination which could prove to be more costly is Prague, according to research by the Post Office Travel Money. The Czech koruna has increased by almost 8% against the pound. However, higher meal prices could also see UK visitors to the city paying up to 20% more in comparison to last Spring.
However, the good news for tourists is that many European destinations have lowered their prices in a bid to attract visitors. For instance, meals and drinks in the Algarve area of Portugal and Corfu in Greece will cost 13% less than this time last year, whereas prices in the Costa Del Sol and Sorrento have gone down by 5%. The increasing strength of the Croatian Kuna and Bulgarian lev has been offset by the price cuts in popular resorts such as Zadar and Sunny Beach.
Beyond Europe, the pound is faring better against several currencies and there are bargains available for tourists wishing to travel further. The South African rand has fallen by 26% against the pound, and the Mexican peso is also weak, meaning that you can get £76 more when you exchange £500 in comparison to a few years. The Canadian, Australian and New Zealand dollars have also fallen in value since last year and are now more than 10% weaker than they were two years ago.
However, for people travelling to the USA and Japan, the news is not so great. The US dollar is at a five year high in comparison to the pound, which means that popular destinations such as New York and Orlando are now 10% more expensive. If you are travelling to the Caribbean, you’ll get around 7 per cent less currency than a year ago. In Japan, you will get approximately £66 less when you change £500.
The constantly changing shifts in currency make it even more important to do your research when booking a holiday. A spokesperson for the Post Office Travel Money said that if travellers tried to opt for a destination where the currency was weak against the pound and in-resort prices had fallen, they would be able to make their holiday money stretch further. You should also conduct more research when considering where to change your holiday money, as high street firms and banks will charge you more than a smaller firm would. You should consider whether you want to be able to secure a ‘buy back’ rate for any leftover currency after your holiday.
To find out more about the latest exchange rates, call the Travelex contact number.
