Will The British Pound's Tumble Open Up European Deals For Americans?

September 24, 2009 at 3:48 PM | by Omri | 0 Comments

It used to be that Americans were functionally blocked out of travel packages like this great seven night holiday at the 4-star Hotel Louis Phaethon Beach in Cyprus. The deal is marketed to British tourists and pegged for the British pound, coming in at a pretty decent �610 per person for the transportation-inclusive vacation. There are other options floating around for the Hotel Louis for up to �200 less if you're willing to go during the winter.

The problem is that even a �400 vacation package last March would have been almost $800 for an American. The exchange rate has gotten a little more even, though it's up from where it was in January. Today �400 is about $650. The bigger question is how the travel industry will adjust now that the British pound is tumbling. Hotels.com is on the story, suggesting both that prices will change and that more deals will appear, at least from the British perspective:

Hotels.com has revealed that the plummeting pound has prompted a rush amongst British travellers to look for a getaway beyond the major Eurozone destinations. With the Euro almost at parity with the pound, the cost of a holiday in many continental cities has spiralled for Brits heading abroad... "Meantime, for travellers who do want to head to the major culture capitals of the Eurozone, there are still some fantastic deals to be found. While the exchange rates might not be in our favour, there are still bargains out there as hoteliers look to fill their rooms, with savings of up to 40% on hotels in Europe."

The hope would be that, the British pound having weakened, European hoteliers would bring prices down to something more reasonable for Americans. But of course that's not the whole story. The dollar hasn't really moved much against the Euro, staying at about 1.5 to 1. We suppose the lesson is that American tourists will need to wait for a stronger dollar before can take advantage of the UK's misfortunes. Fingers crossed!

[Photo: Hotel Louis Phaethon Beach]

HotelChatter

Select a Destination:

Tags: Deal Or No Deal / Cypress / Exchange Rates / Hotel Louis Phaethon Beach / → All Tags