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Boost for holidaymakers as pound hits 19-month high against weak euro 30 June 2010
Steven Jackson (about the author)

Cash-strapped families preparing for foreign holidays were given a boost yesterday after the pound hit a 19-month high against the euro.

News that the single currency has slumped by 11 per cent since this time last year came after a rush of bookings were made following England’s early exit from the World Cup.

Sterling’s surge in value to 1.24 euros – the highest exchange rate since November 2008 - means the average family could save £700 on a Mediterranean break compared with 12 months ago.

Also because many euro-zone economies are struggling with debt crises, Britons on the Continent will be able to take advantage of cut-price offers on many everyday products.

A spokesman for the Asssociation of British Travel Agents said: 'Holidaymakers are in for a very pleasant surprise when they find out just how far their hard-earned cash can go in many holiday hotspots.'

Late deals

Sarah Munro, head of Post Office Travel Money, told the Daily Express: ‘Things are definitely looking up for the beleaguered UK holidaymaker planning a trip to the euro-zone this summer.

‘Away from the euro-zone, sterling is doing well against eastern European currencies so Bulgaria and Croatia will be good value too.’

Thomas Cook estimates that the latest improvement in sterling could save a family £700 when it comes to holiday expenses like meals, drinks, cigarettes, taxis, ice cream and newspapers.

Other tour operators were quick to announce their late deals yesterday with First Choice offering two weeks on the Greek island of Corfu for £299 per person, saving £270.

Booking rush after world cup exit
Lastminute.com has seen a rush of people logging on to look for travel deals after England's elimination from the World Cup on Sunday. Bookings rose 25 per cent on the previous day in the hours after the final whistle was blown after the nation’s 4-1 defeat by Germany.

Many people had decided to stay at home to watch the competition and had expected that England would at least progress to the quarter finals.

The firm's head of travel, Andy Washington, said: 'People want a way of getting over the football blues, and for many a late summer break is the thing they need.'

However Steven Jackson of Beatmydebt.com warned that a stronger pound was not a reason to tear up holiday budgets. "It is extremely easy to overspend on holiday as there is always the tempation to reach for the credit card and worry about the consequences later" he said.

"Making a spending budget before you travel and then sticking to it when you are away will prevent debts building that you then struggle to repay for months. If you arrive back from your holidays and find that your are struggling to repay your debts, you should seek professional advice" Jackson advised.

Euro to continue to fall

Lowcostholidays.com, meanwhile, said the number of people visiting its website rose 40 per cent compared to last week.

The euro is expected to continue to fall as Greece and Spain face the deadline to repay a cash injection from the European Central Bank.

Analysts said Chancellor George Osborne’s austerity budget had been welcomed by investors who are encouraged by attempts to tackle Britain’s debt. However, with countries such as Spain and Portugal threatening to echo the Greek crisis, euro-zone economies are seen as more risky.

Although, the pound still remains weak, its resurgence against the euro will be a welcome relief to millions of Britons left despairing by the increasing cost of foreign holidays.

Source: Mail On Line