Brexit and its Impact on the Travel Industry Globally

We all have been hearing about Brexit – United Kingdom’s exit from the European Union (EU), which is about to happen in two years time. Among the different impacts that Brexit would have on the world, travel is an important one. US citizens will find fewer options of flying abroad. Moreover, the passport lines will be longer as well when they travel. But the positive thing is that the trip would be cheaper when compared to present expenses.

As per a leading economist, Brexit will create the opportunity of spending outside the U.S. He also opines that this is the best time for visiting generally any part of the world because the dollar is not as strong when compared to pound sterling. Since the exchange rates of currencies like Euro or the pound is more favorable than the dollar now, you will get more worth for the money at restaurants and hotels during the trip. You will also be able to buy good souvenirs to bring back home.

Air travel to get more complicated

During the negotiation period of Brexit, U.K will have to freshly work on open skies agreement. With the present agreement, many new air routes were added and traveling expenses were quite low. If rework on the agreement is not done, air traveling will become more expensive.

Along with expensive air traveling, passengers will have to wait longer in passport queues. For instance, if passengers get down at London, they will have to show patience and wait in long passport lines. This is because along with Americans with US passport, Europeans will also have to wait in the line. Previously, they used to breeze through a separate line that was exclusively designated for EU residents. The process of baggage claim and passport control is also going to get complicated.

Steep rise in hotel prices

Brexit will also have direct adverse impact on the industries related to travel and tourism in U.K. There might be inordinate delays in development of new hotels and restaurants in the country. Not only this, prices of hotel stay, shopping, dining and transit will be higher with Brexit.

Though numbers of US passport applications that are being submitted are increasing, but the numbers of business travelers traveling from US to UK are declining after the announcement of Brexit. With business traveling taking a backseat, the hotels are offering deals and discounts to make up for the losses presently. But on the long run, lodging prices in UK are going to see an upsurge.