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Tumbling pound will hit travellers in the pocket as price of flights set to rise

Our new life outside Europe... your guide to how things are likely to change

By Rachel Martin

Published 25/06/2016

The cost of foreign travel has already soared as the shock referendum result sets in. File image
The cost of foreign travel has already soared as the shock referendum result sets in. File image

The cost of foreign travel has already soared as the shock referendum result sets in.

A crash in the value of the pound means a family of four - which on average would have spent around £227 a person for each week of their holiday - will find their week in the sun will cost them £166 more if they get their travel currency at today's exchange rate instead of the pre-EU referendum rate of €1.27 for every pound.

Already, Thomas Cook has suspended its online exchange service as consumers rush to save themselves from the crashing pound, causing a rush in demand on the euro.

Prices abroad will stay the same, but because your pound will get you fewer euros, you'll be paying more in real terms for your vino rose than you would have last week.

In May, David Cameron warned a Leave vote could add up to £230 on to the cost of a family holiday. This week Ryanair promised voters fares starting at just £19.99 as it urged the British public to vote Remain.

The company claimed: "If Britain leaves the EU single market/open skies, it is inevitable that air fares will rise, airline competition will reduce and the cost of holidays to Europe will increase."

The claims have been backed up by independent travel body ABTA. A report by the body stated: "In the longer term, following a Brexit, travel is likely to become more expensive. Depending on trade agreements, new taxes and levies could be introduced."

Knock Travel managing director and ABTA board member Doreen McKenzie said she expected international travel negotiations would take more than two years to iron out.

"It depends how miffed European member-states are in the Brexit divorce, how well those negotiations will work out.

"Saying that- there are millions from the UK who holiday in Spain and Portugal every year and they won't turn that business away."

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