FX Excursions

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Brexit Impacts Worldwide Travel Industry

Jun 27, 2016
Daily

The United Kingdom voted to leave the European Union late last week. While there are and will be many political and economic consequences resulting from this historic decision, known as Brexit, it also affects travel, not only for British residents, but for Americans.

  1. You may be able to travel to the United Kingdom more affordably. The pound saw significant drops following the Brexit decision, while the U.S. dollar is looking relatively healthy comparatively. Now is the time to enjoy cheaper prices for accommodations, travel and leisure activities.
  1. However, if you’re traveling from the United Kingdom to other destinations in Europe, this may not be the case. Some EU members are already discussing the possibility of new tourism and travel taxes for U.K. residents as a penalty for leaving. Even if you’re not a British national, you may still see the effects if you stopover in the United Kingdom before moving on to the European continent.
  1. British travelers will face a bevy of other issues as well. No longer benefiting from the perks of EU membership, British travelers will experience the same long security and customs processes the average American undergoes when entering Europe, as well as foreign travel fees that seem commonplace to the same American travelers. These include possible new and higher charges for travel necessities such as travel insurance and international cell phone charges.
  1. British airline carriers such as British Airways may invoke new charges, sudden delays and cancellations. Prior to leaving the European Union, British carriers took advantage of the European Common Aviation Area, resulting in better and varied flights at more affordable prices. No longer enjoying this EU perk, the future of British airlines is uncertain.
  1. New political unrest is possible. The State Department already issued a summer travel warning for Europe, but controversial political moves such as the United Kingdom is currently experiencing only serve to heighten tensions.

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