Brexit uncertainty following the hung parliament stands to impact holidays
Klaus Mangold, chairman of Tui, which owns Thomson, said pressures linked to a weaker pound and rising destination costs meant prices for British customers were likely to go up – though when and by how much remained unclear.
Mr Mangold said: “We are trying to avoid this, but sometimes we cannot. Italy, Spain, Greece, are increasing their prices so they [British travellers] are suffering two-fold: one is by the currency issue and second is the increase of prices in the country of destination. So you have to compensate it and I believe that we are making major efforts to do this.”
After the shock Election result left a hung parliament, the pound plummeted and analysts say it could stay that way.
Brexit: Holiday booking prices could soar in the general election fallout
Michael Metcalfe, of State Street Global Markets, said: “Markets were poorly prepared for this surprise result… and in response, sterling is likely to remain under pressure.”
Frank Brehany from Holiday Travel Watch said: “The uncertainty already expressed in the money markets (and such uncertainty is likely to continue into the immediate future) places pressure on ordinary holidaymakers’ pockets.
“They are likely to experience receiving less foreign currency for their money and this will also transmit into things being more expensive in your destination.
“If you are going on holiday you need to keep an eye on the foreign currency markets and do a compare and contrast before you buy and make sure that you do so before you get to the airport.
“If you intend to use your credit card abroad, make sure you understand charges and rates of exchanges that will be applied before you use them; failure to do so could cost you more money.
“The current ‘brexit’ scenario could add to those woes through further concerns on confidence, but it is dependent on how the initial discussions form and indeed how stable government remains in the UK.
Mr Brehany advised holidaymakers to plan ahead and shop around to find the best holiday deals.