And the referendum result means…

By | Category: Travel news
One cartoon in France this morning had one star falling out of the circle!

One cartoon in France this morning had one star falling out of the circle!

So the city, financial markets worldwide, the leaders of all the major political parties bar Nigel Farage all got it wrong. We voted to leave the EU.

What does it mean for us travellers and holidaymakers?

In the short term, the only thing that will be affected is the amount you get in local currency for your holiday spending money. As safe havens, if you are holidaying wherever the US dollar, Japanese yen or Swiss franc is used you will get probably about 10-12% less for your money. Most of us will buy euros and, at the time of writing, we will get about 5% less than we would have done if we had bought them yesterday.

In fact, virtually every holiday destination currency has appreciated against the pound so the advice would be not to buy your holiday money for a few days yet unless you need to. In those few days the market might stabilise.

Today airline and travel stocks have been hit; stocks like IAG which owns BA, Iberia, Aer Lingus and Vueling) Thomas Cook, TUI, (Thomson and First Choice) Ryanair, easyJet and Wizz. To us this is of little significance because they are unlikely to go bust. Some small companies which provide EU holidays might have cash problems if the euro-pound rate fluctuates wildly so advice would be to buy your holiday with an ATOL registered company so you have some protection.

As I wrote yesterday, consumer benefit legislation that has been EU inspired and adopted into our law such as compensation for delayed flights, lost baggage and cancelled flights as well as package holiday rules will very probably stay as law. Nothing will change for two years so you don’t need to rethink anything yet.

Your EHIC medical card is fine for use for two years as well but the negotiations might still provide cover for UK citizens travelling abroad because of the value of UK tourism to those destinations.

In Corporal Jones’s infamous words, “Don’t panic.” Most travel life will alter only slowly.

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