Assess the extent to which movements in exchange rates might influence the holiday choices of UK consumers. - Edexcel - A-Level Business - Question 1 - 2019 - Paper 3

From 2014 to 2017, the pound depreciated significantly against the US dollar, causing the price of holidays in the US to rise. Conversely, the trend in UK holidays increased from 1.8 to 2.1 nights, suggesting that despite higher costs abroad, UK consumers still opted for domestic holidays, perhaps due to economic uncertainty.

Factors such as increased consumer incomes over this period might have lessened the negative impact of exchange rate fluctuations. Even while the pound depreciates, higher incomes could enable UK consumers to still afford overseas holidays.

Advancements in technology have made it easier for consumers to budget and book holidays, potentially influencing their choices beyond just exchange rates. Convenience and accessibility can play a significant role in holiday decisions.

While exchange rates fundamentally affect holiday costs, other considerations, like personal income, technological advancements, and domestic holiday preferences, also heavily influence UK consumers' choices. Therefore, it is a multi-faceted issue rather than solely dictated by exchange rates.