Holiday Money Monitor Update: Travel Boom 'Down Under' As Sterling Strengthens Against The Australian dollar

After weeks of financial turbulence, Australia has emerged as a surprise beneficiary of sterling's slump against the US dollar, according to Post Office® Travel Services.

London, UK (PRWEB) November 8, 2008 -- Over the past month sales of the Australian dollar rose to their highest ever level at Post Office® bureau de change branches on the back of a resurgent pound, which is now worth nearly 12 per cent more than a year ago.¹

The Post Office® saw Australian dollar sales peak at a record year-on-year increase of 89 per cent in mid-October and purchases of the currency are currently running around 40 per cent ahead of the same four-week period in 2007 - suggesting that more UK tourists may be heading 'down under' this winter.

And, as sterling strengthened by almost 22 per cent to a rate of £1 to Australian $2.36 from a low of $1.94 in July 2008, the Post Office® revealed that the UK pound is bucking the general trend by registering its highest rate increase since June 2004.

Helen Warburton, Post Office® head of travel said: "Sales of Australian dollars usually peak in November and December as the long haul season gets into its swing - but this year UK tourists seem to have been stocking up much earlier.

"It may be that people who are already planning their trips 'down under' have been watching the rate rise and are buying earlier, in case it falls. Equally it may well be that holidaymakers are switching to a destination where they will get more for their travel money (http://www.postoffice.co.uk/portal/po/jump1?catId=19300207&mediaId=26800661)."

This view is supported by travel operator Travelbag², which specialises in tailor-made holidays to Australia. Senior Travel Consultant Lesley Reeves said that with the tightening of belts, Travelbag had seen: "A move towards a single 'blow out' holiday, generally of three weeks or more, rather than several shorter ones."

And, with the exchange rate helping to trim the cost of getting married abroad, more couples are planning a wedding 'down under' too. Travelbag said it had seen a significant increase in wedding and honeymoon bookings in recent months as the value of the Australian dollar began to drop.

Despite the doom and gloom caused by sterling's drop in value against the US dollar in the run up to Christmas, when UK holidaymakers traditionally travel transatlantic to stock up on bargains, there are several other pockets of seasonal cheer.

Tourists will get significantly more South African rand, New Zealand dollars and Turkish lira for their pounds. Each of these currencies has weakened against sterling in recent weeks: the New Zealand dollar by 7 per cent year on year, the Turkish lira by 10 per cent and the South African rand by nearly 27 per cent³.

Helen Warburton said: "There is still good news for holidaymakers who watch the exchange rates carefully and plan their trips accordingly. The Turkish lira is a case in point. It has dropped in value by 22 per cent since August and last week Post Office® bureau de change branches saw annual growth of 52 per cent in lira foreign currency (http://www.postoffice.co.uk/portal/po/jump1?mediaId=19300210&catId=19300207) purchases. Like South Africa, Turkey is one of the destinations which have regularly scored as one of the cheapest in our Holiday Costs Barometer monitor of resort prices."

¹ Post Office® Australian dollar rates:

27th October 2008: 2.3608 (+11.8 per cent year on year and +21.8 per cent compared with July 2008).

27th October 2007: 2.1119

28th July 2008: 1.9375

² Travelbag is one of the UK's leading long haul specialists (www.travelbag.co.uk, 0800 008 7422).

³ Post Office® rates for South African rand, Turkish lira and New Zealand dollar:

27th October 2008: Rand15.7678 (+26.6 per cent year on year).

27th October 2007: Rand 12.459

27th October 2008: Turkish lira 2.5011 (+10 per cent year on year and +22 per cent compared with

August 2008.

27th October 2007: Turkish lira 2.2721

27th August 2008: Turkish lira 2.0478

27th October 2008: NZ dollar 2.6775 (+7 per cent year on year)

27th October 2007: NZ dollar 2.4968

Also, you can buy cheap travel insurance (http://www.postoffice.co.uk/portal/po) from Post Office®; single trip and annual multi trip travel insurance cover available.

Note to Editors:

For further information please contact:

CBPR                    

Christine Ball                    

01798 874177                    

cball@cballpr.co.uk                 

Post Office Ltd

Hayley Fowell

020 7250 2417

Hayley.fowell@postoffice.co.uk

www.postoffice.co.uk

Post Office Ltd. Registered in England and Wales no: 2154540. Registered Office: 80-86 Old Street, London, EC1V 9NN.

The Post Office and the Post Office symbol are registered trade marks of Post Office Ltd.

Post Office Ltd is an appointed representative of The Governor and Company of the Bank of Ireland, which is authorised by the Irish Financial Regulator and the Financial Services Authority; regulated by the Financial Services Authority for the conduct of UK business. Bank of Ireland, incorporated in the Republic of Ireland with limited liability. Registered in England and Wales with branch number BR000459.

Card Account offered by J.P. Morgan Europe Ltd through Post Office Ltd. J.P. Morgan Europe Ltd is authorised and regulated by the Financial Services Authority. Registered in England and Wales No. 938937. Registered Office: 125 London Wall, London, EC2Y 5AJ

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