Brexit-related uncertainty is affecting some holidaymakers’ getaway plans. Aside from concerns surrounding entry requirements to other countries, additional factors – such as fluctuating currency rates – have influenced the decisions of many. So, what’s the full picture and what can travel operators do to adapt to these changes? We collaborated with YouGov to find out. Here is what we discovered.
The cost of uncertainty
According to data from Nimblefins, the average Brit spends – in the other 27 member states – approximately between £64 (Slovakia, Bulgaria, Spain and France) and £67 (Portugal, Denmark and Italy) – with an average of £65 (the rest of the EU).
Out of the 2,034 individuals we surveyed, 12% had delayed their holiday plans due to no assurances related to Britain’s withdrawal from the European Union. This correlates to 244 people.
From our sampled pool, analysed together with the Nimblefins data, the above means that Brexit-related holiday plan delays could be costly for the travel industry. For the first four mentioned countries, this could lead to a loss of £15,616 – per person – per night. That figure is £16,348 for the latter three and £15,860 for the other EU member countries.
Domestic holidays and exchange rates
A small group of surveyed individuals decided to stay in the UK instead of going abroad, with 4% booking a holiday within Britain. Similar trends have surfaced in industry reports elsewhere, too. In ABTA’s 2019 Travel Trends Report, almost six in 10 people (59%) planned a domestic break this year.
The report also found that spending on domestic trips increased by 4% as well, to £4.1 billion, compared to the same period in the year before. Coupled with our own findings, these statistics suggest 2019 for tourism within the UK.
In part, these results may correlate to concerns surrounding foreign exchange rates. 36% of holidaymakers have expressed their worries in this regard, while almost a quarter (25%) are concerned about the cover of their insurance policies. Meanwhile, 20% of survey participants are unsure about their passport requirements when travelling abroad. This could therefore correlate to the number of people planning domestic trips.
What’s the overall effect with travellers?
Men (20%) were more frequent holiday plan changes than women (17%), while 27% of London residents in our survey cited Brexit as a reason for altering plans. The least likely regions to change their holiday plans were Wales, where the figure was 12%, and the North East, where the figure was 15%.
Most surveyed holidaymakers, however, isn’t letting the current state of affairs affect their plans. 60% said they that Brexit hasn’t affected their planned trips, while 18% take infrequent holidays.
What do these findings mean for travel operators?
Holiday booking patterns will be “very different this year”, in the words of our CEO Jonas Reynisson. He also believes this could lead to a surge in last-minute deals as well as the ‘staycations’ we mentioned above, even more so with the recent news that the country’s exit from the EU will be delayed until at least October 31st.
Reynisson also believes that this will lead to a greater need for suitable technology. He added: “Travel operators need to ensure they have robust systems to respond to fluctuating consumer demand and can rapidly scale their operations as required, whatever happens over the coming weeks and months in Westminster and Brussels.”
Travel operators also need to address the concerns of travellers, especially when it comes to passport worries and foreign exchange rates. While they might not be able to have a direct fluence on these, keeping customers updated with the latest news will provide a source of reassurance.
To summarise…
While the majority of holidaymakers’ plans are not affected by Brexit-related uncertainty, according to our research, the split of those who are is still sizeable. Nobody knows what will happen, so the best thing that can be done is prepare accordingly. For travel operators, ensuring that their booking flow is seamless and adaptable through sturdy technology is imperative. On top of this, understanding their customers’ concerns and providing support where possible will be a necessity.
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