How much can you save travelling now to
Why the United Kingdom is cheaper now?
The British pound has faced the lowest levels for 2,5 years on the fears of no-deal Brexit. After Boris Johnson was elected for the position of Prime Minister and declared that Brexit would happen either with or without deal, British currency fell dramatically.
Investors see less need in pound in future, probably because London would lose its importance as global financial center. Due to the fact that Britain imports more than exports, the effect of pound drop will be very negative for the economy.
The sluggish uncertainty of Brexit negotiations between the UK and EU, has changed to the real fears of “hard Brexit” with all the hardships it would bring. It scares investors, businesses, but is perfect for European travelers, who are able to visit the UK much cheaper than before.
Pound Sterling has lost more than 8% in comparison with Euro and gained more than 7% with USD.
Inflation rate is 0.6% and EU inflation is 0.7%.
There are plenty of cheap tickets to the UK from other European countries. The cheapest tickets in August are:
11€ from Dublin
11€ from Prague
11€ from Vienna
11€ from Budapest
The BigMac Index by The Economist suggests that The British Pound is 22% undervalued if we look at the Raw Index. And is 8% undervalued using GDP-adjusted methodology.