In the midst of all the
doom and gloom a raw December and poor economic prospects comes the news that the pound has sunk to a record low against the €uro. The best tourist rate I can find (12 December 2008) is £1 = €1.0898 , (rates from the Post Office for online orders for amounts over £350).
Fortunately the fall in the oil price still means that unleaded petrol (85) at €1.089 and diesel at €0.967 is broadly the same as current UK prices, a welcome relief after prices earlier in the year of £1.30 or more per litre.
So what can you do? Currency speculation is a dangerous game, but if you kept your spare €uros from your last trip, they are worth more now than before. But buying €uros now for next year is pure speculation.
One option is to book your ferry or other travel soon – with the loss of Speedferries there will be less capacity across the Channel next summer, and on the back of the Speedferries experience, ferry companies may be wary of offering ultra cheap prices especially in the high season. There are still some cheap offers around, but in general I would expect the level of cross-channel fares to increase next year. Perhaps book soon or very late would be the best advice – there may also be some good late-booking offers if the poor economy and exchange rate make a big dent in European travel next year.
P&O Ferries are offering crossings Dover – Calais from £27 each way, whilst Norfolkline is offering fares from £19 each way Dover – Dunkerque for bookings by 31 January 2009
Another approach may be to look at self-catering and/or camp site holidays where you can have more control over your spend, especially if you shop and cook for yourselves. Whilst eating out in France can be a real joy, it is no longer such a cheap option. B&B (Chambres d’Hote) can often provide a great alternative to hotels at a bargain price – with all the advantages of a warm welcome and good local knowledge. It can be a not scary first time, but most people find it a real bonus – saving money and meeting local residents – and of course there are numerous British-owned B&Bs and gites throughout France where the language need not be a barrier.
Whilst the temptation may be to stay in the UK next year, that is also not a cheap option unless you literally stay at home. Visitors from France generally comment on how expensive the UK is, even with the stronger €uro.
