05 April 2008

Brits can now be told where to go.

Where is the Value for the UK traveler? The UK de-nationalized Post Office would like you tell you.

On April 1st the UK Post Office Travel Division published its report on the value destinations based on currency rates and usage. In the plus column UK and Sterling holders should consider South Africa, the Caribbean, Hong Kong and the USA. However on the downside the slide in the Pound is most noticeable in Europe falling 17% in the past year against the Euro. Even those currencies that are currently pegged to the US dollar such as the Gulf (GCC) states are suffering the impact with inflation and rising costs eating into holiday spending. US food and transportation costs have risen significantly during the past year.

The savvy British Traveller doesn’t always follow logic. The exchange usage – Pound into Euros – has escalated nearly 30% year on year. So the general health of the UK market seems to be holding up. However – we are now starting to see the twin impacts of the global economic turndown and the rapidly rising price of fuel. Still the price of the flights on discount Low Cost Carriers has not kept pace with the rise in Fuel costs.

So where is your best value according to the Post Office? South Africa or Jamaica if you have the time. If not – stay home.

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