Currency fluctuation hits travel patterns

Fluctuating currency exchange rates are significantly changing traveller behaviour with fewer British visitors to the US.

The pound’s dramatic fall against the dollar has turned the tables on transtlantic travel this autumn, according to travel price comparison website Cheapflights. 

Searches from the US to London and Manchester are up significantly, while searches from the UK to New York and Orlando have dropped. 

With sterling dropping sharply by 25%, from $2=£1 a year ago to just $1.53 currently, it is no surprise that UK searches for flights to the US are down whilst US searches for the UK are up, the company said.  

Year On Year US searches October + November 2008      Year on Year UK searches October + November 2008

US to London           Up 23%                           UK London to New York       Down 21%

US to Manchester     Up 18.25%                      UK London to Orlando          Down 21%  

The four destinations detailed are the most popular with consumers searching for deals on Cheapflights’ respective UK and US sites.  

In the UK, due to the strength of sterling last year, Orlando particularly benefitted as a holiday destination.

At the same time on Cheapflights’ US site, London dropped out of sight, normally one of the few foreign cities in the US site’s top 20 destinations searched for by US users.  

Eurozone destinations from the UK are being adversely affected by the euro’s strength which has increased 13% against sterling versus last year. 

The trend has been for Eurozone destinations to lose popularity.While perennial favourite holiday destinations are managing to remain in the top 20 rankings, their search traffic has dropped relative to last year over the same period.

Year on Year UK Searches October + November 2008

UK to Tenerife                   Down 13.5%

UK to Malaga,                    Down 18.4%

Further Afield

Continuing an earlier trend, searches for non-euro long and medium haul destinations, where the cost of living, climate and exchange rate offer the best value for hard-earned money, are up.  These are continuing to enjoy double digit percentages in growth.  

Dubai  in particular has benefitted from advertising and media coverage about the launch of the new luxury Atlantis hotel on Palm Island.

Year on Year Searches October and November 2008

UK to Bangkok          Up 11.1%

UK to Dubai             Up 28.8%

Cheapflights CEO Chris Cuddy said: “What a difference a year makes.

“Last year it was ‘sale time’ for Brits visiting the US and now the trend has reversed. 

“Americans are returning to the UK and have promoted London once again to a top 10 searched destination. Travellers on both sides of the Atlantic are reflecting their price sensitivity like never before and welcoming the great deals on flights this season.”

He added: “Since airlines have been given a breathing space on fuel prices and have rationalised routes and cut back on costs there are literally millions of great deals out there. 

“The trick is to be flexible about when you fly, not only the date but time of day and consider an alternative regional airport – which often have the best deals.  If you can’t, make sure you book well in advance and of course search the internet.”

by Phil Davies