The world may be divided, but one thing that unites people is daydreaming about holidays. However, as the pound’s value drops, it becomes even more expensive.
A sharp decline in the pound, driven by government borrowing and concerns over the UK economy, means that British travellers will get less for their money abroad.
The pound has fallen 6.8% against the US dollar, reaching its lowest level since November 2023, offering just £1.21 per $1 compared to £1.30 in October 2024.
This decline affects other major currencies, including the Euro and Swiss Franc, with the most significant drops seen against Caribbean and South American currencies.
New data from No1 Currency reveals that since Rachel Reeves presented her first budget in October 2024, the pound has weakened against 51 currencies, gaining only against the Hungarian forint, New Zealand dollar, and South African rand.
Despite these changes, affordable travel is still possible. Cost factors beyond exchange rates, such as local prices and travel expenses, also contribute to this.
For example, while the pound is strong against the Hungarian forint, flights to New Zealand may outweigh savings made on currency differences.
Budget-conscious travellers can explore destinations like Budapest, Hungary. According to Metro, it is the cheapest city in Europe for weekend breaks, and its affordable flights, accommodation, and food make it a prime choice.
Additionally, Vilnius, Lithuania, named Europe’s most affordable city, offers charm and value, highlighted by travel expert Alice Murphy, who spent 48 hours exploring its unique attractions.
With careful planning, Brits can still enjoy cost-effective holidays despite currency challenges.
