How Will Brexit Affect Your Next Vacation?
The recent Brexit fiasco has caused a lot of confusion for a lot of people. Britain’s unexpected decision to leave the European Union has had widespread implications for multiple stakeholders as well as related industries. The Sterling has reached its lowest value since the 80s, resulting in entire industries shutting down.
So let’s get straight to the point; what does all this mean for prospective vacationers who were planning a trip to Europe? Let’s separate the fact from fiction…
How Will This Affect Airfare?
There are two factors that we’ll need to look at; the fuel prices as well as the 1994 Open Skies Agreement. The first of these is pegged to the dollar, which means that as the dollar rises in value, so will fuel prices. As the dollar saw an unprecedented climb since news of the exit first broke out, fuel prices have increased substantially, making airfare more expensive. No one can say how this will change in the future, but in the short run, you’ll be paying more.
The effect of the Open Skies Agreement isn’t as obvious as the dollar value fluctuation. Most airline services state that the agreement made it possible for them to operate low cost services; its abolition will likely increase the cost that airlines incur.
Is This the Right Time To Buy Euros Or Should I Wait?
No one can say with certainty how a currency will deviate in the future. However, a general pattern observed through historical trends is that once a currency reaches its lowest value (support), it’s followed by an increase that raises its value above the median. Since the sterling continues to fall, you might be better off waiting until the support level is touched and its value increases.
Will My EU Passport and Driving License Still Be Valid?
Having an EU passport grants you special permissions to visit all countries that come under the union without a visa. For British citizens however, that right will be abolished once the exit is complete. But since renegotiations and a clear path are still undefined, your EU passport might still be valid for a few more months.
Currently, British citizens will have to go through passport control upon arrival in an EU country. How this changes depends primarily on how the Schengen agreement is treated, which essentially made travel border-free for all member countries.
What about Travel Insurance and Data Plans?
All EU member countries are awarded with an EHIC (European Health Insurance Card) which basically serves as travel insurance for tourists within the union. It has yet to be seen how this particular perk will change for British citizens; while the country is exiting the EU, Britain has bilateral relations with several member countries that might choose to retain these rights.
Data plans haven’t changed, and the standard roaming charges would still apply. In fact they might even get cheaper, as some careers are now expected to offer packages with no data roaming charges.