Hotels.com has reported that the weakening pound could raise the price of holidays abroad and lead to more holidays at home in 2013.
Using its biannual Hotel Price Index (HPI), Hotels.com has reported that based on actual prices paid in 2012 compared with 2011, UK travellers faced price hikes in over half of the international destinations in 2012, despite the strength of the pound. Hotel rates overseas now look set to rise in 2013 as the pound is weakened by the strengthening euro and US dollar and the downgrading of the country’s AAA credit rating.
Nigel Pocklington of Hotels.com said: “While the Eurozone crisis translated into better value city breaks for UK travellers in 2012, the euro’s growing strength against the pound could drive up UK prices this year. Although a weakening pound is bad news for British holidaymakers wanting to travel abroad, the UK’s travel industry will welcome the news. A weaker pound will make the country more appealing to overseas visitors, while boosting the number of Brits holidaying at home. With British designer goods effectively ‘on offer’, we’re hoping to see more visitors coming to the UK from the Middle East, Brazil, Japan and China in 2013, providing relief for the nation’s high streets.”