The Financial Express (Delhi Edition)
HOW BREXIT WILL AFFECT TRAVEL TO EUROPE
With Britain voting to leave the EU, travel to Europe is pegged to be cheaper for sure, but it may also result in extra paperwork at the borders
Brexit may result in extra paperwork at the borders
IN THE height of the summer travel season, Britain voted to exit the European Union, scrambling markets, as well as the political picture. What happens in the aftermath of Br exit, as it is known, is far from clear, but travellers heading abroad will see some effects. How does the Brexit vote affect people travelling to Europe and Britain? The most immediate effect is in the exchange rates between the dollar and the British pound, which has recorded its lowest rate in about 30 years after the results of the vote were published, providing American travellers a discount on prices paid throughout Britain.
“You will get a lot more bang for your buck in the UK,” says Zach Honig, editor in chief at ThePointsGuy.com, which covers travel and incentives. “For lots of people, London is traditionally an expensive tourist destination and, with this shift, the UK and, specifically, London probably are now within reach.” The dollar has also improved against the euro, making travel within countries using the euro cheaper. Is it a good time to book air travel? Yes, but it has been so for the last six weeks, as per George Hobica, the founder of Airfarewatchdog.com. “Airfares to Europe have been plummeting, especially for late summer travel, after the college kids go back to school around August 28 and onwards,” he says, noting that fares to Europe from the United States were appearing as low as $400 and $500 roundtrip pre-Brexit. “It may have been an anticipation of Brexit, but we don’t know,” he says. “It’s probably also the fact that the euro and the pound were drifting lower, and that means that fewer people were flying from Europe to the US and the airlines had to fill those seats with people flying from the US to Europe.” Twothree years ago, he says, summer airfares to Europe were running in the $1,800 range.
Current deals, says Gary Leff, the author of the travel blog Viewfromthewing.com, are “a function of some growth in capacity and some of the ultra-low-cost seats on carriers like Norwegian. And it’s what we all expected, with some lag, due to lower fuel prices. It’s been inexpensive, and now it’s inexpensive to be there, thanks to the currency.” Will I get a better deal on a tour or package to Europe or Britain now? Maybe. It’s early days, but if exchange rates hold and travel softens within Europe and Britain, expect more enticing travel offers. “Usually when these things happen, the travel industry response is to bring people in,” says Mike Stitt, the North American president of Travelzoo, a publisher of travel deals. “The real area I would watch are vacation deals. There are packaging companies and tour operators who work with airlines and hotels, and can put together strong deals to entice travellers.” When these deals might surface is unknown, but probably later this year, assuming exchange rates hold. Will my experience at the UK or European borders change as a result of Brexit? Americans must still present a valid passport when entering European Union-member countries, as well as Britain. When the dust settles and Britain is extracted from the European Union, which most believe will take some years, it is travellers from European and UK countries who may experience more hassles at foreign borders. One area of uncertainty is Northern Ireland. A member of the UK, Northern Ireland shares a restriction-free border with the Republic of Ireland now. No passports are required for transit between the two countries, which—though both were members of the European Union—use different currencies. With Britain’s withdrawal from the European Union, the Ireland and Northern Ireland border would now represent a frontier between the UK and the European Union, though what form that would take is unknown. As Ireland’ s Prime Minister End a Kenny wrote in The Guardian, “What is not easy to quantify and mitigate is the psychological effect of a hardening border on the island. My fear is that it would play into an old narrative—one of division, isolation and difference.” Will there be any effects felt in the travel industry in the United States? The decline of the pound relative to the dollar could affect incoming visitors from Britain who tend to visit popular destinations like New York, Miami and Chicago .“If British tourists, because of currency fluctuations, change their plans or don’t come to the US, you may see some ability to get some better prices in some cities,” says Stitt of Travelzoo. “We’re seeing a little of that effect now with Canadian travellers. As their currency has plummeted against the dollar, Canadians are staying home.”