What does Brexit mean for the travel industry?

The proponents of Brexit have won, Britan has left the EU. Only time will tell if the fears associated with a crumbling economy of the UK will come true or Brexit will be justified. It's a question that will affect many spheres of life, and one that sticks out is travel.

The first major point to raise is that the timing of Brexit collided with peak travel season, which was in the middle of summer. If you were in the euro-zone around this time, the US dollar areas, or anywhere else where the exchange rate has crashed, it would have been bad news. That pint of San Miguel or Bud would just cost more. Relative costs in your resort will only be going one way as you simply get much less foreign currency for your pound. Exchange rates of £1 to €1.19 and $1.35 are painful and your spending power overseas is seriously diminished.

As Brexit will take almost two years to happen, more than short term, there are long term effects to this. The biggest long-term effect on travelers will be a financial one. All depends on how successful the process of Brexit is. If Britain blossoms as the leaders of the Brexit movement promised, then the country will be richer, the pound is likely to strengthen and more of its countrymen will be able to afford holidays. If the economy stutters, taxes rise, jobs become less secure and the pound falls, then overseas travel will be much less affordable for most of us. It would become a luxury item. Let's look at some areas where once Brexit is complete, might get effected.

Firstly, once the “Exit” happens, British citizens will no longer need visas to travel into the EU for holidays. Though they will, like now, have to pass through passport control when they first enter. But perhaps the greatest unknown fact and a very critical one brought about by Brexit, and a factor which was discussed relatively little during the campaign, is the impact it will have on the rest of the EU.

Secondly, the ginormous success of the “low cost” airlines and the impact they have made on reducing fares and opening up new routes was enabled by the EU's removal of old bi-lateral restrictions on air service agreements and the introduction of more open competition between the Union countries. Now that Britan is moving out EU, new air service agreements will have to be formulated for no frill airlines to fly in and out of EU.

Thirdly, it would be lower compensation for delayed flights. The remarkably high levels of compensation that passengers are entitled to under the EU directive on flight delays and cancellations are because they are embedded in UK law. No doubt British airlines will lobby hard to get the protection watered down after we have left. Nevertheless flights in and out of EU countries and on EU airlines will still be governed by the directive, though you could have a much harder time claiming compensation, and might have to go to court in another country to win your case. However, the dire predictions that passengers might end up with not only no compensation but that they could also lose their entitlements to food and drink and overnight accommodation in the event of long delays, seem to be an unlikely outcome to me.

Finally, financial protection arrangements for package holidays, so that you don’t lose money or get stranded in the event of a holiday company collapsing are embedded in UK law under the EU directive of 1992. Therefore there is no coverage for insurance or accident packages. This could be a big turn off and travel could become risky, especially with children.

Therefore, whether Britan prospers or collapses, is to know for years to come. The jet setters or the backpackers will know if the thrill in their journeys is tampered with the new laws or it would continue.