Flight Bookings to Britain Rise as Brexit Weakens Pound, According to Reuters

LONDON (Reuters) – Flight bookings to Britain experienced an increase in the month following the country’s decision to leave the European Union, as international travelers aimed to capitalize on a more affordable UK holiday due to a decline in the value of the pound.

According to travel analytics company ForwardKeys, inbound flight reservations rose by 4.3 percent in the 28 days leading up to July 21 compared to the same period last year. This was a marked turnaround from the previous month, where bookings had decreased by 2.8 percent.

The referendum held on June 23 resulted in the pound dropping approximately 10 percent against both the dollar and the euro, making trips to the UK more economical for visitors holding those currencies.

ForwardKeys attributed the increase in bookings to this shift in exchange rates.

“Brexit had an immediate, positive impact on inbound tourism to the UK, which is translating into higher-than-expected arrivals,” said ForwardKeys Chief Executive Olivier Jager in a statement.

In the 28 days following the Brexit vote, bookings from outside Europe surged by 8.6 percent compared to the same period last year, bouncing back from a decline of 0.1 percent in the month preceding the vote, with notable increases in travelers from Hong Kong, the United States, and Canada.

In contrast, flights booked by European travelers dipped by 1.8 percent compared to the same month last year, an improvement from the 6.8 percent decline witnessed in the prior month.

The increase in tourist numbers could offer a significant boost to attractions, hotels, restaurants, and shops throughout Britain. Moreover, many businesses are already anticipating a rise in local travelers opting for “staycations,” or holidays within the UK, during challenging economic times.