Last week’s Budget may have received a frosty reception from the UK media, but it turns out it has made it cheaper to go abroad for some winter sun.
The British Pound has surged in response, meaning that the thousands of British tourists heading abroad over Christmas will get more bang for their buck than they would have done a month ago.
Analysis by Edinburgh-based online travel money specialists No1 Currency has revealed that the Pound is now worth more against 45 out of the 54 (83%) most popular holiday currencies compared to the start of November.
The post-Budget ‘Rachel Rally’ marked a sharp turnaround for sterling. Earlier in November, the Pound had fallen to its lowest level against the Euro in more than two years.
The Pound rose fastest against the South Korean Won, jumping 3.2% in November alone. £1 now buys 9.9% more in Seoul than it did a year ago.
Sterling also rose sharply against the currencies of several popular holiday destinations that come into their own during the winter months. It climbed 1.9% against the Turkish Lira in November, and a trip to Turkey’s Aegean coast now costs a quarter less than it did a year ago after sterling rose 27.6% against the Lira in 12 months.
The Pound also rose 1.9% against the Sri Lankan Rupee in November, and a trip to the tropical island – which enjoys daytime temperatures of 29C in December – now costs 10.4% less than it did a year ago.
Anecdotal evidence also suggests that the flat in the Philippines this writer will be spending Christmas in is over £100 less than it was when he booked it in the summer, according to Booking.com’s own currency converter, despite extensive media outrage over “mansion tax” and child benefit.
Despite Sterling’s change in fortunes looking Eastwards, it’s not all good news. Fallers include the most commonly purchased holiday currency of all, the Euro, against which the Pound has slipped 5%.
Simon Phillips, managing director of No1 Currency, said: “Rachel Reeves’ Budget has handed an early Christmas present to anyone planning a foreign getaway in December.
“Whether you’re hitting the ski slopes or just hoping for some winter sun, the Pound in your pocket now stretches further against 83% of the most popular holiday currencies than it did a month ago.
“But while sterling surged last week, the past year has been tough for the Pound and a trip to a Eurozone country like France, Spain or Greece still costs 5% more than it did last December.
“Exchange rates have a big impact on the spending power of British travellers, but they are volatile and hard to predict. So if you’ve booked a foreign trip for Christmas, it might be worth exchanging some currency now to lock in the benefits of the Rachel Rally.
“Remember that exchange rates can differ a lot between different travel money providers, so make sure you shop around for the best deal and never leave it to the airport to get your holiday cash.”
