Disney-bound Britons feeling the pinch after pound plunges
HOLIDAYMAKERS heading for the US will be feeling the pinch this summer after the value of the pound plunged.
Sterling dropped below $1.20 this month, 14 per cent lower than a year ago and – barring the pandemic when it slumped even further – its lowest level since 1985.
The painful exchange rate comes just as many are desperate to take a long break for the first time since lockdown restrictions were lifted, despite looming strikes and ongoing airport chaos.
It means everyday items, meals out and tourist attractions will be much more expensive.
The most basic ten-day pass for two adults and two children to Disney World Florida will be almost £200 more expensive this summer. The tickets cost the equivalent of £1,859 in dollars today compared with £1,650 at last year’s rate.
A four-night stay for two at a romantic New York City hotel will
‘Many of us have made sacrifices for a holiday’
be about £100 more expensive. Four nights at the boutique Moxy NYC Chelsea in July will cost £832 – but would have been £738 at last year’s sterling rate.
The cost of other typical holiday essentials in New York – including a bottle of beer, a cup of filter coffee, sun cream and a three-course evening meal with a bottle of house wine – would cost £120 versus about £105 last year.
Nick Boden, head of Post Office Travel Money, said: ‘Sterling’s fall in value makes it even more important for people planning trips to consider the costs they will face in resorts abroad before they take the plunge and book a holiday.
‘While they weigh up the cost of flights and accommodation or package deals, they will also need to watch what is happening with sterling, as that will make a sizeable difference to the overall cost of their holiday.’
Research from comparison website Compare The Market reveals that eight in ten Britons admit that the cost of living crisis has affected their holiday plans. Inflation has risen to more than nine per cent as the costs of energy and everyday goods have rocketed in recent months. Compare The Market’s survey of more than 2,000 people also found that seven in ten people were already cutting back on dayto-day spending in order to save up enough money to go away.
Alex Hasty, trading director at Compare The Market, said: ‘Many of us have been making sacrifices to ensure we can afford a holiday this year. Holidays are a big expense, with our research showing that the average trip costs £1,074 per person.’
Mr Hasty added: ‘Lots of holidaymakers have experienced disruption in recent weeks, as the travel industry reopens post-pandemic. And many people risk failing to take out insurance far enough in advance, leaving them unprotected from disruption such as advance flight cancellations.’