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Higher Holiday Costs and European Travel Insurance
Travel & Tourism
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Whatever your political views were during the referendum, there?s a good chance that you will have seen arguments associated with European holiday costs post the Brexit vote (the ultimate result). This has also been linked to discussions about European travel insurance.
Here?s a quick, professional and hopefully objective summary.

European Holiday Costs Post Brexit

The first thing to bear in mind is that the world didn?t end the moment the vote was announced. The holiday and travel companies are still here plus they?re VERY keen to make you part with your cash.

Nothing short of a worldwide catastrophe will probably change that ? so deals it's still out there to be had.

However, it?s probably fair to state that most experts predict that European holiday costs are likely to go up consequently. Nobody can be sure when, but it might be sooner than we think as well as perhaps continue over 1-3 years.

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For a while:

? Currency fluctuation with Sterling contrary to the US Dollar. Most of the cost of one's holiday (e.g. aviation fuel) is calculated based upon holiday companies paying for things in US Dollars. The foreign currency markets are worried plus they?ve pushed the value of Sterling way down against the USD. Which means higher prices.

? A weaker Pound contrary to the Euro. The consequences here may be less significant, as the Euro sometimes appears by the markets as a weaker currency. However, modest declines in Sterling?s value contrary to the Euro will push up your holiday costs and reduce the spending power in your pocket once abroad.

? Opportunism. Yes, it?s not unknown for holiday companies to try and justify cost increases during times of political change (the Trojan Horse Syndrome), although commercial competitive pressures of the market should keep control of this.

? Company valuations. A slightly trickier one, but it pertains to the valuations of companies declining because the share markets have retreated due to nerves on the vote. Holiday companies and all related industries will undoubtedly be keen to offset that by producing some investor confidence-building results and price increases seem an attractive way of doing so.

The Medium to Longer Term:

? It seems definately not clear what will happen to the EHIC reciprocal health cover agreements. If the machine winds down, then families should search for comprehensive European travel cover which includes health-cover.

? If the markets? nerves with Sterling start to move investors from the pound and in to the Euro as well as the US Dollar, then prices will inevitably rise.

? A BIG element in the NO vote was a promise to radically reduce immigration. If that promise is honoured, the EU is likely to respond and that may re-introduce entry controls in EU destination countries. That may cause not merely delays but additionally more work with the immigration and border control authorities, which will generate costs ? which is passed onto the holiday companies.

more info ?s not necessarily inevitable that prices will rise substantially or quickly ? nonetheless it does seem to be an extremely real possibility.

For the cost-conscious family traveller, doing your research will probably become ever-more important, including for that more comprehensive European travel cover should the EHIC system be wound down.

Patrick Chong is the Managing Director of InsureMore, an award-winning team of specialists in worldwide and European travel cover policies. Besides offering money saving deals on travel cover, Patrick also collects and shares the very best free travel competitions to help his clients obtain the most out of their holidays.

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