Your guide to booking a post-Brexit holiday

Our consumer travel expert offers advice on where to go, when to book and how to get the best value for money

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he main shortterm impact of the Brexit vote on travellers so far is the fall in the value of sterling. This has been very sharp, but, as we went to press it seemed to have stabilised at about €1.20 to the pound. That is a lot lower than recent performance – the rate was over 1.35 at Christmas. But it is still higher than it was in the depths of the last recession between 2008-2012. So don’t be too pessimistic. Costs on the ground in most destinations have effectively gone up by 10 per cent – not great, but not a complete disaster. We have seen this situation before, and it is still possible the euro may also weaken because of the political uncertainties on the Continent, too.

A bigger issue from a cost point of view is the value of the pound against the US dollar, which at one point last week slumped to its lowest level since 1985. It has recovered some ground, though it remains weak. The problem here is not just for travellers who are planning to travel to the United States. Many countries – especially in the Caribbean – have currencies which are pegged to the US dollar or which use it as a parallel currency. Many travel services – like cruises or luxury safari lodges – are priced in US dollars. And, most importantly of all, so is oil, and this will put pressure on airfares, ferry fares and petrol price.

How soon will we feel the impact? Much depends on the performance of the pound. But some prices will be affected sooner than others. Obviously costs when you arrive in a destination, and anything you have booked in advance which was priced in a foreign currency, have already gone up. But, in the short term, the cost of anything you have booked or can book in sterling will be protected.

So, what can you do now to make the best of the situation, and, looking further ahead, what are the longerterm implications for travellers.

Short-term strategies

The pound has dropped against virtually all currencies since the vote. But according the FairFX, those where it is still higher than it was three years ago include: Norway (up 22 per cent) and Sweden (11 per cent); Australia and Canada (nine per cent) and Croatia (four per cent).

While staying in the UK for your holiday means you are protected from currency fluctuations, remember that many other people will be thinking the same. This summer, at least, there will probably be fewer good deals, and less availability than usual.

By contrast, you are much more likely to get a good-value late deal on a holiday in Europe. Package holidays priced in pounds are a particularly good option and the best place to find them is to look out for offers on tour operator websites. See our holiday bookings guides at telegraph.co.uk/ tt-bookingguides for detailed guides and contacts for operators to all the key Mediterranean destinations.

Note, however, tour operators are legally allowed to surcharge, or increase the price of your holiday by up to 10 per cent even after you have booked if their costs increase because of factors such as currency fluctuations. Strict rules are in place: the provision for surcharging has to be stated in the booking conditions, no price increases can be imposed within 30 days of departure, and the operator has to absorb the first two per cent of any cost increases. You must be allowed a cancel option and be given a full refund if you don’t want to pay the extra. Many big tour operators hedge their costs to avoid the need to surcharge. Inghams has just announced that it has frozen all its summer and winter holiday prices and ruled out surcharges. Abta lists all its members which are imposing surcharges on its website (abta.com) – currently there are only two listed.

And don’t forget that even with the weaker pound, hotel prices, the cost of renting holiday cottages, and of eating out are still significantly cheaper in most European countries than they are here. A holiday in northern France, for example, can still be better value than the equivalent in Cornwall or Devon.

Consider all-inclusive holidays priced in sterling. That is the easiest way to protect the bulk of your holiday costs.

Don’t gamble on currency. You stand as much chance of losing as of winning. Buy it when you need it. Using your credit card as much as possible is probably the most costefficient way of paying – as long as you pay off the balance each month. In the Croatian city of Dubrovnik, above, the pound will go further than before

Looking further ahead

In terms of passports, border controls, citizenship and freedom of movement, nothing will change until we are formally detached from the EU – which is unlikely to happen until at least autumn 2018. The biggest risks to travellers after that are the potential erosion of consumer rights which have emerged from EU directives, regulations and other arrangements. These protections may be particularly vulnerable because they are unlikely to be at the top of the agenda given the many pressing concerns which will have to be dealt with.

Perhaps the most crucial benefit of EU membership is our right to a European Health Insurance Card (EHIC) which entitles UK citizens to free or reduced-cost treatment in other EU countries. It may survive, or we may find that countries like Spain, which has to fund a very high number of British residents there, oppose its continuation.

EU rules on compensation for airline delays and cancellations are very generous towards passengers. Too generous I have argued in the past – you can get hundreds of pounds in compensation for three hours’ delay to a flight, even if the fare only cost you £20 in the first place. All flights in and out of the EU and on EU airlines, such as Ryanair, will still be covered automatically by the regulations, but there is a high chance this is one area of protection which will be watered down. What is most important is that passengers suffering overnight delays retain their rights to be properly looked after in a hotel.

Mobile roaming charges within the EU are due to be abolished entirely in 2017. We will still be members then, so presumably it will still happen and we should benefit for at least a year. But will it survive post 2018? I’m not confident.

Lastly, but perhaps most importantly, the package travel regulations which protect your money in case your travel company goes out of business before you travel or if it happens while you are away ensure that you get home safely, stem from an EU directive. There is a lot of opposition in the travel industry because they add significantly to costs. A government keen to help may well be tempted to water them down.