Winter sun holiday plans disrupted by sterling slide

Sterling’s volatility is affecting the plans of millions of people seeking winter sun holidays, a new survey has suggested.

The plans of 59% of UK adults previously considering booking a foreign holiday have been affected by the pound’s recent slide in value, according to a YouGov poll for Post Office Travel Money.

A quarter of respondents said fluctuating exchange rates mean they will not take an overseas trip in the coming months, while the same proportion will choose a cheaper destination. Some 28% of those questioned are delaying their trip and a third intend to cut their spending budget.

The pound plunged to historic lows against the US dollar in the wake of Chancellor Kwasi Kwarteng’s mini budget on September 23 but has since recovered.

Analysis of prices by Post Office Travel Money in partnership with holiday company Travelbag found UK travellers are paying more for typical tourist costs at four out of five popular long-haul winter sun destinations, compared with the pre-pandemic year of 2019.

Based on exchange rates on October 1, costs have risen by more than 20% in 14 of the 28 locations studied including St. John’s, Antigua (up 55.3%); Cancun, Mexico (up 42.6%); Orlando, US (up 28.8%); and Chinatown, Singapore (25%).

But sizeable price cuts in places such as Hoi An, Vietnam; Phuket, Thailand; Montego Bay, Jamaica; and Jumeirah, Dubai mean trips to those locations are better value than before covid.

Nick Boden, head of Post Office Travel Money, says it’s more important than ever that people seeking winter sun “do their homework and be aware of prices in destinations they are considering”.

He also advised people planning winter sun trips to “watch exchange rate movements” in the weeks before their departure and “purchase their holiday money when the pound rises in value”.

Not all bad: Phuket is better value now than before the pandemic