Weak pound influencing consumer’s choice of destination
By Darren Cronian on Wednesday, December 17th, 2008

I have been inundated with emails from consumers asking what impact the drastic drop in the value of the pound will have on tourists visiting countries in the Eurozone. Firstly, we have to remember that currency exchange rates fluctuate; it was only six months ago that we were getting $2 to the pound.

Weak pound influencing consumer’s choice of destination

Exchange rates influencing our choice

For the first time I think we’ll start to se the exchange rates influence our choices on where we go on holiday. I cannot talk for all consumers but I have never taken the currency into consideration when costing up the price of a holiday – until now.

Comparing prices like-for-like

So a holiday to Thailand might initially cost a lot more than a holiday to Greece, but if you bear in mind that it’s cheaper to eat and drink in Thailand and you’ll get more Baht’s for your British pounds. It’s worth spending some research time comparing like-for-like.

Best currency exchange rates

A quick scout around the high-street and I found the best places for currency exchange to be Nat West, the Post Office and Marks & Spencer’s. Earlier in the year I wrote an article titled carrying and accessing your money abroad – a useful guide on money matters for travellers.

Good for British tourism

There is at least one good thing about the weak pound and that’s we should see an increase in tourists hitting our shores. Good for the economy and good for our tourist industry. Let’s just hope that Visit Britain gets out there and promotes cities outside of London.

Credit crunch travel toolkit

On the 2 January we’ll be launching our ‘Credit Crunch Travel Toolkit’ – a PDF e-guide to help consumers get the most out of their money. The likes of Thomson and Lastminute.com have contributed along with the web’s best travel writers.

Please leave any tips or advice on finding the best exchange rates in the comments section.

Visit this guide for suggestions on the best travel destinations in 2009 for the weak pound


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10 responses to “Weak pound influencing consumer’s choice of destination”

Jim Logan | 17 December, 2008 at 9:03 pm

Is that correct? Six months ago you could buy two British pounds for one American dollar?

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Andy | 17 December, 2008 at 10:09 pm

“Six months ago you could buy two British pounds for one American dollar?”

He means 2 dollars to the pound.

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Darren Cronian | 17 December, 2008 at 10:15 pm

@ Jim

I think it was 6 – 8 months ago, that it was £2 to $1. It was between £1.90+ to $1 for a good 12 months I think. That’s why so many Brits headed to the US because we received alot for our money. Not so now.

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Alex | 17 December, 2008 at 10:24 pm

Last December I almost got $2 for £1. I will be more interested to see what effect the falling pound has on European ski and boarding holidays. Snow sports are expensive in themselves and during hard times these types of holidays for Brits could be a luxury that is cut first. I am hoping that ski companies will be forced to reduce their prices in desperation for business and I can still go. Bring back the Franc!

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Darren Cronian | 17 December, 2008 at 11:10 pm

How stupid of me. Yes, thanks Alex, I do mean $2 to the £1. Sorry, will correct the post.

Writes lines ‘I must not write posts during eating my cheese and pickle sandwich” 100 times.

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Pete Meyers | 18 December, 2008 at 10:04 pm

Hi Darren -

Welcome to the club! As an American expat living in London last year, the exchange rate of $2.00 for 1 GBP tore me apart (especially since I was getting paid in dollars….ooof.)

Now that it’s down to $1.50 to 1 GBP, I think your prediction that London will seem more fiscally reasonable to American tourists is right on the money. In general, though, I think that with smart research, planning and plenty of price comparison shopping, tourists can manage currency fluctuations without being pushed to avoid destinations they would’ve otherwise visited during a more favorable currency climate.

Happy holidays,

Pete

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Lee Harrison | 19 December, 2008 at 9:47 am

On GMTV they compared buying a Cup of Tea abroad in 2007 was something like 0.67p and in 2008 it would cost you 0.95p now, trying to highlight the fact that if you were going to Holiday in Europe it would now be unnaffordable and that Holidays in Europe would be a lot more Expensive. I Doubt if you could visit many Restaurants in England and get a Cup of Tea for less than £1.25!!!

In Fact despite all of this talk and Gloom and doom, I’ve been (Pleasently) Surprised at the Value of bookings we have been taking. I’m also predicting that by the Main Holiday Season the Pound will have re-gained it’s strength against the Euro.

Let’s Face it based on £1.00 to 1 Euro would you rather be paying £1.25 for a Cup of Tea sat in a restaurant in Skegness or 1euro.25 and sat outside overlooking spectacular Beaches and Turquoise Blue waters of the Mediterranean, I know Which I’d prefer.

Mind you Darren would probably state that there is no Comparison between a good Cup of Yorkshire Tea and a Liptons Tea Bag with a bit of string hanging out of your cup abroad!

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Darren Cronian | 19 December, 2008 at 11:11 am

@ Lee

Interesting, thanks for the comment, and good points on the comparison of £1.25 cuppa in Skeggy compared to abroad. I had to remove part of your comments though because they were promoting some of your holiday deals, and well if I let all companies do that, I’d be spammed up ;)

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Lee Harrison | 19 December, 2008 at 12:15 pm

Not meant to be spamming Darren, trying to give people an idea of some of the Costs and destinations that are selling at the moment. Not meant to be a sales pitch as we can do that from our own site.( Christmas and New year Newsletter available in pdf format shortly) :-)
Anyway Happy Christmas Darren and to all of your readers on Travel Rants.

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Darren Cronian | 19 December, 2008 at 1:32 pm

@ Lee

Sorry, I wasn’t referring you were a spammer, more other companies could see an opportunity to spam their holiday deals. Happy Christmas to you and everyone at Select World Travel!

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