The euro falls below the dollar for the 1st time in 20 years: what it means if you travel
The euro fell below the dollar for the first time in 20 years, mainly due to the ongoing war in Ukraine and fears of recession in the Eurozone.
So if you’re traveling to Europe as an American, or want to, now might be the time to take advantage of booking hotels without a markup, as well as shopping abroad without having to make conversions.
“It would be difficult for there to be more interest in Europe than there is currently,” Leslie Overton, director of travel operations at travel advisor consortium Fora, told The Points Guy.
The dollar is strengthening against the euro and the impending recession in Europe is further depressing the value of the euro.
For Americans, that means the ability to take advantage of it when they go abroad.
But although the exchange rate is ideal on paper, taking this vacation may cost more than expected.
Hotel and flight costs have increased by 20% to 60% depending on the market, according to CBS News.
“The point is, you probably need to see at least another, dare I say, 5% or 10% appreciation of the dollar against the euro before it becomes a serious consideration where it’s cheaper to travel abroad than for someone from New York. visit California or even Florida”, Christopher Vecchio, Head of Trade Integration and Senior Strategist at DailyFX, told Cheddar.
There is also the question of the availability of hotels at affordable prices. According to Overton, some hotels remained closed after the pandemic and other properties are facing staff shortages.
The same can be said for airlines. Flights are canceled due to understaffing and high fuel prices.
But once Americans are on the other side of the Atlantic Ocean, they will start saving money.
“The dollar is much stronger and goes further on certain things”, Melissa Biggs Bradley, founder of Indagare, told CBS News. “The kind of opposite to that impact is that flights and hotels are a lot more expensive than they were a year ago, so in a way you’re not going to get a good deal on everything. a travel”,
“Where you will find the best value for money are restaurants, buying a cup of coffee and taxis.” Bradley added.
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