Thomas Cook reveals negative Brexit impact on EU holiday plans

Thomas Cook revealed on Monday that nearly half of the holiday packages sold for this summer are to non-European Union countries as the uncertainty around Brexit leads Britons to change their travel plans.

More holidaymakers have chosen to book their summer breaks outside the EU with 48% of packages having destinations outside the EU, global travel company Thomas Cook said.

That was 10% higher than at the same point last year and the company blamed the “political turmoil” for the switch.

"It is possible that the United Kingdom is living unique times from a political perspective. However, our desire to spend our holidays abroad is clear, " said Will Waggott, head of Tour Operating for Thomas Cook.

"Political turmoil is having an impact in other ways, reflected in a clear shift towards non-EU countries," he added.

Sterling's weakness against the euro since the 2016 referendum result was also a factor.

“Prolonged uncertainty around the manner and timing of Britain’s exit from the European Union. The weakness of the pound against the euro is the most likely cause for holidaymaker’s willingness to venture further afield, almost half of Brits say they have been watching exchange rates more closely than previous years,” Thomas Cook said.

As of Monday morning, the single currency was changing hands at £0.8626 versus the pound.

The Brexit extension until October granted by the EU had also served to prolong the uncertainty that had been building up over the past two years of negotiations.

Turkey was the biggest beneficiary of the shift in holiday destinations, moving into second spot as the most popular destination after Spain and surpassing Grece. Tunisia was also set to benefit from the Brexit turmoil.

Analyst Josh Mahoney said regarding the effect of the news on the London stock market: "Fresnillo head up today’s FTSE 100 losers, with fears arising over the possibility of another period of downside in the precious metal. On the other side of the index, we have seen a boost for the likes of TUI, easyJet, and IAG on the news that consumers are looking further afield for their holidays as the Brexit process continues to rumble on. This highlights that there is a willingness to spend despite the clouds overhead, with the likes of Asia and the US looking more attractive, especially given the widespread offering of low prices on relatively exotic destinations."