Travellers to be affected by fall in pound

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The pound has fallen to its lowest level in two years against major currencies like the euro and the dollar, which is going to have a huge effect on holidaymakers travelling abroad this year.

The pound has been steadily falling in value over previous weeks, but it was only when Moody’s downgraded the credit rating of the UK from AAA to AA1 (the first time this has happened since the 1970s) that the currency really took a hit.

What does this mean for travellers? Essentially, anyone going abroad who has not yet changed their money into foreign currency is going to find that everything costs more. Experts are predicting that the pound is likely to remain low against the euro and dollar throughout the summer, and it may be even later in the year before it picks up, meaning anyone going on holiday abroad will have to spend more for the same things than they would have spent last summer.

Due to the added expense of travelling, one area that could be affected is travel insurance. Travel insurance is an essential purchase, but many people still travel abroad without it. It is feared that with the added costs of going abroad, more people may decide against purchasing a travel insurance policy altogether.

This means that they could face huge bills if they end up falling ill and requiring hospitalisation whilst abroad. Although the EHIC card can help for people travelling to other EU countries, it does not provide cover for things such as repatriation. This means that people who are badly injured could end up stuck in a foreign hospital bed with no hope of getting back home.

Travel insurance also provides cover for cancelled trips, delayed departures, lost valuables and many other things, so it should be considered an essential purchase. Hopefully not too many people will try to cut the price of their holiday this year by missing out on travel insurance, as it could end up costing them a lot more as a result.


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