42% of Brits have been priced out of foreign holidays by the additional costs of Covid-19 testing

Millions of Brits have been priced out of foreign holidays due to additional costs of Covid-19 testing. Here is the lowdown.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Vacation travel planning concept with map.

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

The cost of Covid-19 testing is stopping millions of Brits from travelling for holiday abroad. This is according to new research from online doctor service and pharmacy, ZAVA, who say that 42% (22 million) of British adults have been “priced out” of foreign holidays by coronavirus testing.

Here is the lowdown.

[top_pitch]

What are the current requirements for foreign travel?

Lockdown restrictions in the UK have been eased and people are allowed to travel abroad for holidays.

A traffic light system comprised of three categories; green, amber and red, is being used to guide travel to different destinations. The full list of destinations on each list can be found on gov.uk.

Each category has its own travel rules and restrictions. Destinations on the green list have the most relaxed rules. Holidaymakers to countries on this category do not have to quarantine upon returning to the UK.

Different destinations, including those on the green list, however, have their own guidelines in place. Most European countries, including Spain, France, Greece, for example, require all people aged 12 and above to provide a negative Covid-19 test on arrival.

Now, as research from ZAVA shows, millions of prospective travellers have had their hopes dashed by the cost of securing these Covid-19 tests.

Why is Covid-19 testing pricing many out of foreign holidays?

According to ZAVA, up to 22 million Brits have been forced to give up on dreams of foreign travel this year due to the added expense of Covid-19 testing. This represents about 42% of all adult British adults.

ZAVA reports that those who have enjoyed a holiday since the pandemic’s outbreak in March 2020 have been forced to pay as much as £195 per person in order to obtain tests. So basically, a family of five could be looking at a staggering additional cost of close to £1,000 in testing fees.

It’s not surprising therefore that a large number of would-be holidaymakers have had to postpone or cancel their plans.

[middle_pitch]

What other Covid-19 related problems are holidaymakers experiencing?

It’s not just testing fees that are impeding many Brits’ travel plans.

For example, ZAVA reports that for one in ten (9%) who did manage to take a test, their hopes of a holiday were dashed by either:

  • testing positive for Covid-19;
  • purchasing the wrong type of test, (i.e. one which was not on the government’s list of providers); or
  • falling victim to a fraudulent testing scam.

Further, holidaymakers have had to contend with the administrative challenges of travelling. For example, one in three (37%) have experienced confusion when trying to find a reputable testing provider. Nearly half (44%) report being confounded by the government’s traffic light system.

Overall, the combination of cost and some of these additional stress factors has put nearly half of adults off travelling abroad at all. 49% also report that they are fearful of contracting Covid-19 abroad, while 65% say they are fearful of getting stuck in a country if it changes status on the government’s traffic light system.

What can I do to boost my chances of travel, protect myself and reduce costs?

While the additional testing costs are certainly an inconvenience to many, and for some, a complete impediment to travel, it’s important to remember that the requirements are in place to ensure and promote public health and safety.

As Dr. Babak Ashrafi from ZAVA says, “It’s important to take the care and time to fully understand the obligatory testing procedures we need to undertake, buy from reputable government-backed programmes, and be vigilant against COVID-19 related scams. This will ensure we, as a nation, can return to travel safely and minimise as much stress as possible.”

Finally, to save on costs while on holiday, consider taking a travel credit card with you. Unlike other cards, a travel credit card does not charge you extra for non-sterling transactions or cash withdrawals. It could save you a decent amount on your foreign holiday expenses.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

More on Personal Finance

Note paper with question mark on orange background
Personal Finance

Should you invest your ISA in a model portfolio?

Which model ISA portfolios offer both high performance and low fees? Hargreaves Lansdown, Interactive Investor and AJ Bell go under…

Read more »

Economic Uncertainty Ahead Sign With Stormy Background
Personal Finance

Is it time to exit emerging markets investments?

Investors may well be sitting on losses from emerging markets funds. Is it worth keeping the faith for a sustained…

Read more »

Personal Finance

Share trading? Three shares with turnaround potential

Share trading has been difficult in 2022, but which companies have turnaround potential? Jo Groves takes a closer look at…

Read more »

Man using credit card and smartphone for purchasing goods online.
Personal Finance

Revealed! Why Gen Z may be the savviest generation when it comes to credit cards

New research reveals that Gen Z may be the most astute when it comes to credit cards. But why? And…

Read more »

Environmental technology concept.
Personal Finance

The 10 best-performing sectors for ISA investors

The best-performing sectors over the past year invested in real assets such as infrastructure, but is this trend set to…

Read more »

Road sign warning of a risk ahead
Personal Finance

Recession risk ‘on the rise’: is it time for investors to worry?

A major global bank has suggested the risk of a recession in the UK is 'on the rise'. So, should…

Read more »

pensive bearded business man sitting on chair looking out of the window
Personal Finance

1 in 4 cutting back on investments amid cost of living crisis

New research shows one in four investors have cut back on their investing contributions to cope with the rising cost…

Read more »

Image of person checking their shares portfolio on mobile phone and computer
Personal Finance

The 10 most popular stocks among UK investors so far this year

As the new tax year kicks off, here's a look at some of the most popular stocks among UK investors…

Read more »