Weaker Euro Set To Make 2012-13 Season Cheaper For Brits?

The weak Euro looks set to make skiing in Austria, France and Italy more affordable for Brits next winter.

With the official exchange rate passing 1.25 Euros to the pound and currency exchange bureaus offering up to 1.23 Euros to the pound in recent weeks, the cost of skiing in the Eurozone will be down more than a fifth on recent seasons, when the exchange rate reached almost parity and 1 Euro = 1 pound – if the current situation lasts until next winter.

In fact in some cases it is possible to make purchases of ski rental, ski school and lift tickets – as well as accommodation if booking direct – for those who already have their 2012-13 ski season holiday booked.

Many ski resorts in Austria already have their lift ticket pricing up online for 2012-13 with advance purchase and immediate payment offered by some. French resorts typically publish their prices later and Italian and Andorran last of all, but these should be appearing over the next eight weeks.

Set against the reducing cost of the Euro are price increases in ski resorts. Early indications are that these will vary tremendously with most resorts holding lift ticket increases to 2% or less, although 3 Valleys in bucking that trend with as cost increase of more than 6% on a six day ticket – but in all cases the stronger Euro means far greater savings than any price increases can nullify.

So far it is only the Euro zone that has seen a marked price decrease fpr Brits, the US and Canadian dollars along with the Swiss Franc all remain very strong.

And of course it is unknown whether the current exchange rate between the pound and the Euro will remain stable, or if the Euro will regain in strength, or if the pound will get stronger still against it.

As welcome as this is, it really doesn't matter to me as I'll ski in Europe irrespective of how the currency rate is. Extra cash in the pocket is great news though.

One of my well versed clients suggests the Euro may be up to 1.4 by the year end. Hold on, dont book yet!!!!

Tony_H wrote:

One of my well versed clients suggests the Euro may be up to 1.4 by the year end. Hold on, dont book yet!!!!

I'd take that with a huge pinch of salt mate. From what i have been reading up on the feeling is that NOW is the time to jump in.
The current high is mainly due to the Euro crisis and not really because we are strong. With our economy now stalling there is a fear that interest rates could be cut to stimulate growth. If that happens then the pound will fall against the euro again.

Im no fiscal expert but thats what the financial press are saying.

Snapzzz wrote:

Tony_H wrote:

One of my well versed clients suggests the Euro may be up to 1.4 by the year end. Hold on, dont book yet!!!!

I'd take that with a huge pinch of salt mate. From what i have been reading up on the feeling is that NOW is the time to jump in.
The current high is mainly due to the Euro crisis and not really because we are strong. With our economy now stalling there is a fear that interest rates could be cut to stimulate growth. If that happens then the pound will fall against the euro again.

Im no fiscal expert but thats what the financial press are saying.

Thats the general opinion publicly. The £ is not strong but the euro is weaker, and likely to continue to weaken. I' m sitting tight to see it fall further.

Some UK shops have a European price match, so well worth checking out prices in euro zone on big iticket items.

Interesting. France today confirmed zero growth last 1/4.
UK today showed inflation UP over 3%.

Watch this space.

Who knows? - the Euro should get weaker in the short to medium term until the Southern economies come into line with the Northern ones (or they leave)
The UK government has a vested interest in keeping the Pound weak to benefit exports and realistically can only only acieve this by printing money (or the Newspeak for this is Quantitive easing) as it can't really drop interest rates any lower.

Historically the Pound seems to weaken in the summer (presumably because our darling bankers make more money from us tourists buying our Euros) which hasn't really happenend this year, so my guess the Euro will fall further when the summer hoiday period ends.

I suggest tourist euro purchases are an insignificant force, c/w the amount of money bought forward. (Businesses with export contracts can safeguard the contract by buying forward) and other financial movements.

To view the currency movement over 5 years:
http://uk.advfn.com/p.php?pid=qkchart&symbol=FX%5EGBPEUR
The effect of the banking crisis can be seen.

Also of note is the rate of recovery is not as steep as the rate of decline.
Hence, IF one were to believe that the current recovery will continue, this indicates a winter season with an exchange rate c 1.35 Eu/£.

The TO's recognise this, and some action is being taken. Inghams, for instance, are offering to match the local lift pass rate.