Depreciating pound could result in influx of tourists to Britain

Britain which chose to leave EU due to immigrants will now potentially have to deal with an influx of tourists. Unfortunately, with increased tourism comes illegal immigrants.

Although Brexit’s seismic shocks have sent massive shock waves in the collective spine of many of the world’s leading economies, it appears that there is a positive impact to it as well.

Many online sites have reported a jump in queries from Americans wanting to travel to Britain since Brexit has hammered down the value of the pound, which in turn has made travel to the country less expensive.

Another site has reported that many Britons have asked about the cost of flight tickets to the United States.

Whether these queries will result in actual travel is yet to be seen.

Airlines, travel agents and hotel chains have unanimously said that it is, as yet, too early to tell whether Brexit’s impact on Britain’s tourism. Earlier, financial analysts from the Buckingham Research Group had forecasted that “Brexit” is likely to negatively impact British air tickets. On the contrary, U.S. travel agents are advising their customers to make most of the pound’s fall by booking UK trips now.

According to the Priceline Group’s Kayak, the day when Briton voted to leave the EU, U.S searches exploring fares to Britain climaxed. According to Kayak, flight searches from the U.K. to U.S. have also seen a surge of 46%.

“Americans may want to secure a great fare, while British may be worried that higher fares will soon hit the market,” said Billy Sanez, VP of marketing at FareCompare.com when shown the Kayak data. Incidentally, FareCompare analyzes airfares.

As per Travelzoo, a search site,it saw a jump of 35.3% in travel searches from the U.S. to U.K. from June 24 to June 27; StudentUniverse, another travel booking site, saw a jump of 100% for searches flights from the U.S. to the U.K. It however did not show a change in UK-based searches for U.S. trips.

Many U.S. travel agents have reported an increase in demand for travelling to Britain, but it’s unclear whether this increased in demand will translate to actual travel plans.

According to Darcy Allen, from New Hampshire-based boutique travel agency Travel by Darcy, some clients have locked down their plans.

“They want to take advantage of the lower airfares and are willing to prepay hotels now to lock in the lower (currency) conversion,” said Allen.

If the pound continues on its downward slope, Britain could see a surge of tourists, said George Hobica, founder of Airfarewatchdog.com, a low airfare alert site that covers all airlines.

In the long term, if the British economy slows down, it could translate to a tourism boom since “everything will be cheaper.”



Categories: Economy & Finance, Strategy

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