Brexit and the Volatile Pound
Posted by Mark Armstrong 18th October 2016
As anyone living in the UK will be fully aware, we are now heading towards a time when we will have left the European Union or Brexit, as it has been coined.
So how will this affect us or our customers. Well, no-one really knows yet what the full outcome of Bexit to the UK economy will mean and what EU subsidies the government will continue to pay to invest in our rural communities. We also do not know what the value of the pound will be versus the Euro and other currencies in a future post the European Union. But this is probably the most important factor when our customers are looking at booking a walking or cycling holiday; how far will their pound or dollar go.
Our policy in all previous years has been to have a fixed price for walking or cycling holidays that is kept to throughout the year, although any tailoring of the holiday would obviously affect this price. The 'fixed' price would also appear in the brochure for that year. However, the drop in the value of the pound this year has meant that all profit margins were getting negated and in some cases we made a loss. With the volatility of the pound, we cannot risk this happening for the coming year. We want to keep our prices competitive, but obviously stay in business!
Hence, for 2017 there will be a starting price in pounds, based on the price in Euros. If the exchange rate between the pound and the Euro subsequently changes by a significant amount, we will review our prices in pounds and keep them updated on our website. The price in Euros is fixed for the year, but the price in pounds may alter if the exchange rate changes. If you live outside the UK, you can pay directly in Euros. Once we have taken a confirmed booking from you and a deposit, the full holiday price you are going to pay is guaranteed and locked in (even if the holiday price subsequently goes up on our website).
Our brochure for 2017 will have a price list insert which will have the prices at time of going to press, but the up to date prices will always be available on our website.
So, if you believe the pound is going to continue to fall, it may be advisable to book early to get the best price!