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Author: Internal Customer Services Agent
Holiday costs to some destinations are going up as the pound value comes down
Due to the fact the pound is now at its lowest rate against Euro in more than a year (as at January 2016) the cost of going on holiday and having money to spend whilst there is beginning to rise. At its current rate the pound will return 1.27 euros; which is a vastly smaller figure then that of years gone by. In reality the pound is likely to fall in value against the euro further still given the looming EU referendum in June of this year. As a result of this families will now be a position where they have to pay out comparably much higher amounts than in more recent years. Not only will the weak value of the pound mean that holiday makers receive less spending money for each pound taken but also the conversion rate will push the costs of holidays up also. Sadly the reduced value of the pound against the euro isn’t the only example of a drop when converting our currency. Take for example the pounds current value against the US Dollar. Whereas two years ago £1.00 would have got you $1.71, currently the rate is down to $1.40 meaning not only will you need to convert more money to have the same value of dollars but also that the cost of the holiday is proportionally higher also. Many financial experts are warning that in these currently somewhat uncertain financial times, they may be continued ill effects for consumers looking to go on holiday to certain locations.
That said some of the more farfetched holiday destinations are seeing an increasingly higher value for money. Take for example South America, where the value of the pound against the Argentinian peso has increased by 175 percent over the last three years. This means where £1000.00 is converted you will currently receive an additional £800.00 pounds worth of currency compared to 2013. Another example of where the strength of the pound has increased is Norway where its current value is 45% higher than that of 2013. Of course when considering holiday destinations which are further afield it is important to also consider the increase in costs relating to flights, as these will undoubtedly be higher than destinations which are considerably closer. This is why nowadays the importance of shopping around to find the most suitable holiday package as a whole is more important than ever before. The varying values of the pound, depending on location, will mean that the whole cost must be weighed up and not just the cost of the hotel and flights.
Thankfully in today’s modern economy the business of comparison within various consumer sectors is a big one. Not only are there sites with can help you save money in terms of your insurance policies and the associated costs but also a whole host of other markets such as the cost of holiday. Recently Money Saving Expert Martin Lewis advised how consumers should be careful to look at all the costs of their holiday and not be drawn to a package simply because of convenience. He advised in order to get the best possible deal overall there needs to effort put into shopping around and therefore considering paying for different elements of the holiday as individual concerns. This means comparing the price of flights, destination and insurance all on an individual basis and often in doing so this is where the real savings can be made. Those consumers who automatically opt for package based buying for their holidays often find that although all elements are supplied by one company; in reality there could have been worthwhile savings if the elements were instead split into separate purchases. The total cost you pay for a holiday should be within your realistic budget and this is why often there is great benefit in exploring a number of different destinations and therefore the subsequent offers which exist. Setting a budget in the first instance will ensure you conduct your research in a realistic and affordable manner and are less likely to be tempted by deals which in reality are outside of what can be afforded.
Examples of comparison and advice sites are vast, one of which being of course MoneySavingExpert.com where there is a wealth of information in terms of guidance for all elements of your holiday needs. Taking the time to explore these options in a manner which is sensible will ultimately ensure you locate a holiday where you are getting value for every pound you spend.