How the Election might affect your holiday spending

By Staff Reporter - 12 June 2017

Community

The uncertainty of the Brexit negotiations and the recent general election means that those considering a holiday in Europe this summer may have to put a hold on their plans to exchange money. The value of the pound has been plummeting, meaning travellers get fewer euros in exchange for their cash. Using a reliable payday loan direct lender is one way of increasing your disposable income for a holiday.

The election will impact how and when you exchange your money due to the current instability of the pound. The best advice is to exchange as soon as you notice the rates are good. Waiting a day or two could see dramatic decreases in value. Post Offices and banks do not typically offer customers the best rate, nor do the exchange points found in airports. Using online price check services can help you to identify the best rates where you are located. There are also apps available to download which track the rates and can notify you when there is an increase in the exchange rate.

Another useful tip is to exchange your money in smaller amounts, rather than all at once. This can help to even out the rate you get when the exchange rates are changeable. It can also ensure you avoid changing money during temporary declines and enable increases to be taken advantage of. Although it probably won’t increase the amount you get overall.

Purchasing a buyback guarantee means that any currency which you do not use is bought back at the same rate. These are relatively inexpensive and are essential in periods of instability as it means you won’t lose out if the exchange rate declines while you are away.

Another method for getting around the impact of the election, is to order your currency for a date a few weeks after the election. It is likely that the pound will have stabilised within a few weeks after the initial instability. Unfortunately, this tip will only benefit those who have more than a week until their holiday. Make sure your order your currency with a company which offers the right to cancel. This means that should the exchange rate decrease further you are able to cancel your order and get your money back. It is worth noting that some companies do charge a cancellation fee.

Not only is it likely people travelling to Europe will have less money to take with them, they may also find that prices abroad have increased significantly. In particular, the cost of dining in restaurants and accommodation has risen. Some European destinations have become 35% more expensive since Brexit, it is not yet known whether the general election will further increase costs. When booking a package holiday in Europe it can be worthwhile to use online comparison sites to check which travel company offers the best deal. Last minute booking can also result in reduced prices, although you may have to compromise on the type of room you book.

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