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How Brexit might affect travel in the United Kingdom and Europe

10.04.2016
Topic Featured News

AIG Travel

As the United Kingdom prepares to officially leave the European Union, businesses of all types are pivoting to meet new rules and regulations. When it comes to travel, Brexit could affect the cost of travel to and from the UK, as well as some of the logistics that may come with it. One of the largest considerations will be the value of the pound compared to the Euro and other major currencies. The Telegraph reported that this will have an impact on travel in the coming months, and continue to be a factor for years to come.1 Here's what you need to know about what Brexit may mean for travel:

Changing prices
In the wake of Brexit, the value of the pound dropped considerably. For anyone buying airline tickets within the UK, this will likely lead to more expensive costs overall. Exchange rates and other financial considerations could extend this trend for the foreseeable future.

For the rest of the world, however, the New York Times found that this could generate more enticing travel options.2 Government groups and organizations within the UK could also make changes that further affect the value of the pound, creating even better deals. If travel rates around Europe drop as a result of Brexit, airfare throughout this part of the world could be affected.

Borderless travel
To make the entire process more stable, the UK will likely remain a member of the EU until at least 2019. That means that while the pound has already dropped in value, the logistical or legal considerations will not take hold for another few years. For Europeans, this means that traveling to and from the UK will still be easy and straightforward. Eventually, there could be visas or other restrictions applied, but for now, there are not added restrictions or rules directly tied to Brexit. It is likely that in the coming years, Europeans will be placed in the international line for presenting a passport upon arrival, but specific changes beyond that have not been outlined.

New arrangements and rules will need to be made for British airlines, The Telegraph reported, and it remains to be seen if some of the regional services will be affected. At present, however, airlines can fly in and out of the UK without any new rules.

Restrictions during a trip
Aside from scheduling a visit to the UK and navigating the airport, a visit may look a little bit different following Brexit. For Europeans, using a cell phone in the UK may not be as simple as it is elsewhere in the EU. By June 2017, the whole of Europe is expected to do away with roaming, but this may not apply to the UK. Like other international travelers, it may mean buying a special minutes package or a travel phone.

Beyond that, specific tariffs and rules related to what you can bring in and out of the UK have yet to be determined. For that reason, there may be certain restrictions on what can be bought, and the currency exchange will likely dictate prices and value.

Sources:

1 http://www.telegraph.co.uk/travel/comment/what-would-brexit-mean-for-travellers/

2 http://www.nytimes.com/2016/06/24/travel/how-brexit-will-affect-travel-to-europe.html?_r=0

Contact your travel insurance provider for further assistance.

The information contained here is provided by Brafton. AIG Travel assumes no responsibility for the use, accuracy, or interpretation of the information contained herein.