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Recent articles by Liz Pulliam Weston: • One-fund retirement: Buy and forget, 4/7/2004 • Beware scams by friendly insurance agents, 4/5/2004 • The truth about Social Security is ugly, 4/4/2004 More... |
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The greenback's 35%-plus fall against the euro may be souring you on a trip to the Continent. Heres how to make your dollars work harder there -- or somewhere else. By Liz Pulliam Weston The last time my husband and I sneaked off to Paris, before the baby was born, the euro was worth about 89 cents. The exchange rate in April 2002 made an expensive city seem like a bargain. (Well, almost.) Sadly, the weakened dollar means that that particular party is over. Vacations in euro-land potentially cost 35% to 40% more than they did two years ago -- and 11% more than a year ago. While the strong euro hasnt squelched Americans travel plans -- travel experts agree that bookings to Europe are up sharply from last year -- the exchange rate could bust budgets for those who arent prepared. I discussed some perennial ways to save money in 12 cheap ways to tour Europe in luxury, but a dollar this puny may require more drastic action on your part. Some options: Really give vacation packages a look For too long, I associated vacation packages with hapless travelers trapped in a tour bus. In reality, todays vacation packages are far more flexible than that. Many are simply combinations of flights and hotel rooms that often give you a steep discount from what you could find on your own. Many airlines offer these packages, as do travel agents and Internet travel sites such as Expedia and Travelocity.
These big packagers have a lot of clout, said Nancy Dunnan, editor of the TravelSmart newsletter. They go in and book hundreds of hotel rooms at a time, so theyre going to get a much better rate than you can. The only way to travel more cheaply, Dunnan said, is if youre the backpacking type whos willing to stay in hostels and other bath-down-the-hall or group-style accommodations. But many of us are, as Dunnan puts it, past the age or stage where we want to shower with all our friends. Think about longer-term accommodations Renting a house, villa or apartment can be an affordable option if youre planning to stay a week or more in a single place. For example, At Home in France, an Ashland, Ore., company that specializes in French vacation rentals, lists homes in Provence that sleep four for less than $1,000 a week. For more options, check out the lengthy list of such companies compiled by Arthur Frommer in a column for MSNBC.com. You might even be able to find a vacation package that includes both flight and apartment rental. In early April, Untours was advertising seven days apartment rental in each of two European cities (a total of 14 nights) plus airfare from New York or Boston starting at $2,079 per person, double occupancy -- a deal Dunnans newsletter highlighted as a Steal of the Month. At $300 per night, thats not much of a saving on lodging, but you can save by eating fewer restaurant meals. With the dollar in a slump, the United States has become an even more attractive destination for Europeans, so you may also want to consider doing a home exchange. For more, see Home swaps: The ticket for vacation savings. Consider locking in the rate Vacation packages, cruises and even some hotels may guarantee your rate in dollars rather than euros when you make your reservation. Radisson Edwardian Hotels offers this security for its properties in London, for example. Otherwise, paying in advance can lock in your rate. Cruises have the added advantage of including almost all your expenses in one dollar-denominated lump sum (although shore excursions may be extra; be sure to check). Mediterranean voyages have become increasingly popular this year, said Expedia product manager Melissa Derry, as cruise lines add more options and Americans look for deals. Theres a downside to locking in. If the dollar rallies, youll shell out more than you might have had you taken your chances. Youll also want to check that prices havent changed before you book. Some tour operators and cruises are adding a 3% to 5% surcharge to the prices listed in their print brochures, Dunnan said, to cover currency fluctuations. Think about 'the other Europe' Poland, Hungary, the Czech Republic and seven other former Eastern Bloc countries will join the European Union May 1, but they wont adopt the euro for awhile. That gives travelers a chance to check out lovely, cosmopolitan cities like Krakow, Budapest and Prague before prices rise. If Eastern European conjures up images of grey concrete apartment buildings, you owe it to yourself to do some research. What youll actually find: elegant architecture, stunning vistas, great food and lively nightlife that rival what youd experience in other European capitals. The Lonely Planet guide for Hungary, for example, calls that former Communist country a heart-stealer with all the luxury of Western Europe . . . at half the cost. The dollar is being pummeled everywhere, said Don George, Lonely Planets global travel editor. But the farther east you go, the cheaper prices are. If youre a more adventuresome traveler, you could consider Estonia, Latvia or Lithuania. The Baltic countries are considered really hot right now, George said. The capital of Estonia, Tallinn, by many accounts is a really vibrant, happening place. There are, of course, drawbacks to venturing into less-traveled countries. Service may be spottier, and fewer people may speak the kind of fluent English you hear in Western European capitals. You have to be a little bit more tolerant, flexible, understanding, George said. The tradeoff is that you have a chance to experience a place that isnt jaded about meeting foreigners. Look for Europe elsewhere Travel writer Tim Leffel of Transitions Abroad recommends European-flavored cities such as Buenos Aires or Quebec. (Id vote for Montreal, as well.) Buenos Aires is particularly cheap, thanks to a currency collapse thats allowed the dollar to buy about three times what it did a couple of years ago, but the State Department warns that crime and demonstrations are on the rise, as well. There is more crime, but its not to the extent where you have to be worried about walking down the street, George said. I always ask the desk clerk or concierge if its safe to walk in certain areas, and I use common sense. I havent heard of (travelers) being accosted or robbed. In fact, George said, he has friends who fly to Buenos Aires just to shop -- they have beautiful leather goods that are so much cheaper than in the States. Blow off Europe entirely The dollar buys more now in Mexico, Brazil and Honduras than it did a couple of years ago, Leffel points out, and Canada remains a relative bargain. Many South American, Central American and Asian countries either tie their currencies to the U.S. dollar or try to limit fluctuations. Panama and Ecuador actually use the dollar as their currencies, while Peru, Belize, China, Malaysia, India and Thailand either have a dollar peg or limit exchange fluctuations. Thailand is always a great bargain and still is, George said. Its as lovely, and the people are as hospitable as ever. George also put in a pitch for beleaguered Bali, the Indonesian island whose tourism was decimated by an October 2002 nightclub bombing that killed nearly 200 foreigners. The tourists have never returned to Bali, and there are still tremendous bargains to be had, he said. Unfortunately, the State Department issued a travel warning in March urging Americans to defer all non-essential travel to Indonesia. Americans who travel anyway are advised to keep a low profile...and remain acutely aware of their immediate environment, which might make it a little tough to relax and enjoy the gorgeous scenery. Europe anyway Okay, what if youve considered all the options and still want to see the most popular (and expensive) destinations, such as the United Kingdom, France, Italy and Spain? Here are some suggestions: Book early. Because demand is so high, there will be fewer options for flights and hotels the longer you wait, predicted Expedias Derry. Last year, there were plenty of last-minute deals to be found, she said, but thats much less likely to be true this year as Americans who have delayed trips because of the economy, terrorism fears and the Iraq war finally return to European shores. Consider a cruise. Thanks to cruise industry expansion, there are still plenty of empty berths aboard many ships, TravelSmarts Dunnan said. A European cruise can take you to port cities in Italy, France, Greece, Spain -- even Croatia -- while requiring you to unpack just once. Think about a mini-trip. More Americans are taking bite-sized visits to the Continent, Derry said, staying just three, four or five days. The trend may reflect our busy schedules as much as a desire to save money, but short trips can give you a taste of Europe without trashing your wallet. Broaden your horizons. As in the U.S., flights to and from less-traveled airports might be a little cheaper. Or perhaps you could settle for two- or three-star hotels instead of four-star inns. Budget before you go. Many Americans are pay-as-you-go travelers, and their unfamiliarity with foreign currency means they can get a pretty big jolt when the credit card bills for their spending finally arrive. Have a budget and know what you can spend each day in the currency of each country youre visiting before you get on the plane. That way you wont still be paying for this trip when its time to take your next one. Liz Pulliam Weston's column appears every Monday and Thursday, exclusively on MSN Money. She also answers reader questions in the Your Money message board. | |||||||||||||||
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