The UK’s decision to cut ties with the EU in June earlier this year divided the country, plunged the pound into record lows, and rocked the very foundations of a union intended to keep Europe strong and secure.
And its repercussions are still being felt today.
But what, specifically, does Brexit mean for travel brands both here in Australia and overseas?
Well, despite concern from many organisations and the public in general that the vote to leave would significantly curtail tourism numbers, what we have seen in the last four months is actually some solid growth.
Recent research from the World Travel & Tourism Council is already forecasting a 3.1 percent growth this year based on its calculations, which is a number higher than the growth of the global economy overall – pretty impressive, huh? And all this growth despite the whole Brexit saga.
But unfortunately, it’s still too early to tell what medium to long-term impact Brexit will have on the travel industry, and it’s likely that we’ll have to wait until early next year for the fog to clear.
Source: www.telegraph.co.uk
But what some organisations are tipping is that airfares into and out of the UK will most likely increase in the short to medium term. This is because the UK was previously under the EU’s protective trade umbrella that removed restrictive regulations in the aviation industry in a bid to increase competition and ultimately lower fares.
However, now that the UK is out of the club, they’ll have to play by the regulations, which will likely result in higher prices.
But even this being the case, the weakened pound is likely to offset this slight increase – at least in the short to medium term.
Indeed, the pound is weaker now than it has been in decades, which actually means travel to the UK is the cheapest it’s been in years – that is when you factor in exchange rates.
So all of a sudden, Aussie travel brands operating tours in the UK may be noticing higher numbers than ever before. We’ve already heard from luxury travel network, Virtuoso, who have recorded a 5.5 percent growth year over year. But other brands will soon have their own data, and when they do, we’ll be in a better position to sit back and take it all in.
Source: www. travelerstoday.com
Of course, news of the weakened British pound is nothing new, and KarryOn already reported on how the vote to leave was actually advantageous to Aussie travellers back in June this year, who were able to take advantage of better exchange rates on the back of a weaker pound.
But, in regards to what specific outcomes will result from the UK’s decision to leave, well, we’ll just have to see what comes of the new wave of trade negotiations that are scheduled to take place from now until well into the next few years.
Of course, KarryOn will keep you abreast of specific policy changes that impact the Aussie travel industry as they come to light.
But it’s likely to be some time before we can really sit back and discuss the impact of Brexit on the travel industry – so stay tuned!