Cut-price Covid tests ease financial burden for future travellers

By Matt Redley

Last Friday, the government delivered their hotly-anticipated announcement on the return to travel, offering hope to many who have had plans abroad cancelled or rearranged over the past year. Here, the Transport Secretary, Grant Shapps shared details of a traffic light system which would categorise countries according to the local prevalence of Covid-19.

Many residents in England will have been pleased to hear that a trip abroad is within sight. Likewise, travel companies are desperate to welcome their custom, given the industry’s particularly difficult 2020. However, travellers’ enthusiasm may have been dampened by understanding that they will be required to pay for at least one PCR test after returning to the UK, even if they wish to travel to a “green list” country. For those who have travelled to countries considered higher risk, or on the “amber list”, this group will need to take up to three tests.

In April, this testing regime was reported to add an eye-watering bill to the cost of travelling. Consumer group Which? calculated that a return trip to Greece would require five tests totalling an estimated £370 per person, and for a family of four would cost around £1,480. For a family of four, the average holiday costs £4,792. Additional testing under this pricing, therefore, would represent a 30% increase to the bill before the holiday had started. Whilst many will be eager to squeeze into a tiny plane seat for some sun and an ice-cream, this expense was deemed hard to stomach.

Notably, the price of testing has come down since April. In the past week, however, some of Britain’s biggest tour operators have gone even further by striking deals with the Government to offer holidaymakers tests for £20 per person, less than half the cost of the cheapest available at the time. Travellers to “green list” destination tests using these operators will be offered these lower price tests, including one pre-departure lateral flow test and a gold-standard PCR test for use on or before day two of their arrival back in Britain. Those travelling to a country on the “amber list” will be offered a subsidised test package for £50. These price points are palatable, especially for families who will be keen to book their summer getaway.

Low-cost tests offered by travel companies is a topic that is likely to become a source of competition for those looking to differentiate themselves as travel resumes. Given that many will shop around in making their decision, the winners in the short term are likely to be larger operators who can afford to subsidise testing.

With travel companies keen for travel to return in the coming months given the losses of last year, and as quickly as is practically possible, low-cost testing packages help to build the narrative that travel will be possible this summer. Consistent messaging that the financial considerations to travel are not overly burdensome during the travel restart will begin to restore confidence in the sector, including for those looking to see family and their loved ones abroad after a difficult year.