Stewart Travel owner warns of rising holiday prices

The weaker pound could make holidays more expensive. Picture: Getty Images

However, Glasgow-based travel and property group Minoan said the fall in the value of sterling following the Brexit vote could help inflate the value of its planned flagship hotel complex on Greece’s largest island, Crete.

“The Brexit vote, together with its effect on sterling, may have significant impacts on both our businesses,” said Minoan chairman Christopher Egleton as the firm unveiled its first-half results.

“In travel it is likely to put up the cost of travel and holidays, which may affect the level of bookings going forward although increased prices may also result in higher commission. The effect in Greece is that the underlying value of the [Crete] project, which is based on euros/dollars, means that a lower sterling exchange rate will lead to an increase in the equivalent sterling value.”

Egleton’s comments came as Aim-quoted Minoan said underlying pre-tax profits at its travel and leisure division rose 12 per cent to £332,000 in the six months to the end of April, although an increase in operating costs saw overall group losses widen to just over £1 million, from £759,000 a year earlier.

But Egleton insisted: “Whilst there are momentous events over which we have no control, we have never been closer to fulfilling our substantial potential.”