It seems UK Christmas shoppers are being lured by impending prospect of the British Pound reaching the two dollar level – an important psychological barrier for shoppers. According to reports the favourable exchange rates are driving a flood of visitors to the US by shoppers seeking bargains; especially from New York. Prices in the US are normally cheaper than in the UK anyway, but the factor of two in the exchange rate is especially important as it simplifies the currency conversion process for consumers.
Virgin Atlantic has announced that flight bookings to New York have increased by a fifth compared with this time last year, with many flyers opting to buy first-class or business seat tickets with the money they’ve saved.
The mos popular item on Brits’s shopping list is the iPod Video, which costs a third less in the US than it does in the UK. Other holiday shopping favourites include the the Playstation 2, wich is also thirty percent cheaper to buy in the US.
With the current problems in the US economy, analysts expect that the current favourable US/UK exchange rate for shopping tourism will continue for some time yet.