A strong dollar means opportunities for Americans traveling abroad

Last August, a hotel room in Europe priced at 200 euros was about $ 224. Today, travelers spending US dollars will only pay $ 208.

As a rise last fall, the dollar is strong compared to a series of foreign coins, including the euro, the Japanese yen and the Canadian dollar. And the threat of President Trump’s duties makes only stronger.

For travelers, the exchange rate bonus makes travel abroad extra appeal.

“We have seen an increase in international bookings as travelers are looking for their dollar value abroad,” said Michael Johnson, president of Ensemble, a travel agencies consortium. “The US dollar power has made destinations in Europe, Asia and South America more attractive as travelers can get more for their money.”

At these dynamic and unpredictable times, if the dollar will remain strong is one’s guess. To understand the fluctuations in the currency market and how and where to benefit, we asked travelers and financial experts to weigh.

Strong present, uncertain future

Some factors affect the value of the dollar. Among them, said Michael Melvin, executive director of the Master of Quantitative Finance program at the University of California, San Diego, are economic growth and geopolitical danger.

In recent years, “the US has had excellent economic growth compared to other countries,” Mr Melvin said, noting that the highest interest rates imposed by Federal Reserve to combat inflation make the dollar more attractive to investors.

International clashes such as those of Ukraine and the Middle East also lead to investment in bonds by the US Department of Finance. “The US dollar has a safe role to play in uncertain times,” Mr Melvin said.

The debate on invoices has created more volatility. When 25 % invoices were recently threatened against Canada and Mexico, their coins initially sank against the dollar. Since then they have been recovered after the announcement of the postponements, but still offer good value.

Alex Cohen, a senior foreign exchange general for Bank of America, expects the dollar to remain strong for the first half of the year as new administration policies apply.

The prospects for travelers

The benefit of the exchange rate greatly affects foreign travel markets such as the hotel’s food, gifts and bills, instead of airline tickets, especially for those flying to US carriers, where pricing is in dollars.

Travelers observe saving potential. Since November, bookings have increased by 65 % compared to the same period last year at Luxe Voyage Travel, based in Clermont, FLA, according to its owner, Cristina Cunha, a member of the World Network of Envoyage.

“Customers feel more confident about traveling abroad, thanks to the strengthening of the US dollar and post -election stability,” Ms Cunha said.

For those who have already closed foreign trips, the dollar bonus is an invitation to indulge, said Peter Vlitas, an executive vice -president of affiliate relationships for Internova Travel Group, a travel services company with more than 100,000 travel advisers.

“Historically, when the dollar is strong, we have seen travelers who have already committed their travels trying to” buy “and have better value for their dollar,” Mr Vlitas wrote in an email.

Adrian Mooney, Sales Manager at the Hotel and Golf Kilkea Castle in County Kildare, Ireland, said that for American visitors, Exchange Benefit is about to pass like Spa Services and Horse Riding.

“The strong dollar gives visitors more spending power on the ground,” Mr Mooney said.

How to take advantage of the exchange rate

Before leaving home, make sure your credit card does not charge fees for foreign coins, informed Kathy McCabe, the host of two public television shows “Dream of Europe” and “Dream of Italy”.

When using the card, pay in the local currency when sellers ask if you want to buy the transaction in dollars or in foreign currency.

“You always choose the local currency,” Ms McCabe said. “This will avoid the dynamic conversion of coins, which is a service that converts the market into your housing currency with an exchange rate.”

It showed a warning from the European Consumer Organization that called on practice a “fraud”, noting that studies had found that practice raised prices between 2.6 and 12 % for those who chose the convertible currency.

When you need foreign cash, withdraw it from an ATM owned ATM, said Laura Lindsay, the global specialist Trends Trends with Skyscanner, a flight comparison site, because banking ATMS offers a better exchange rate and lower payrolls.

Where to stretch your budget

Among the countries where the US dollar is moving further, Japan is of particular good value as the yen – which is currently going for 152 yen on the dollar – has fallen against the dollar for the last four years, according to Mr Melvin Ucsd

“Japan has been sold for US visitors,” he said. “It costs a third less to go to Japan than just a few years ago.”

Expedia found Osaka being among the cheapest destinations in the hotel for April, with an average of about 26,878 yen one night or $ 175.

The dollar does not buy enough euros, as in the fall of 2022, when it was slightly ahead of the European currency, but is not far away today, at 0.96 euros on the dollar.

Last year, a dollar bought about 17 Mexican pesos. Today, it buys more than 20. Hotels in popular beach destinations often reach the transparency of the exchange rate, declaring their percentages in dollars. But this is less common in small hotels, such as Mesones Sacristía, in Puebla, which offers antique rooms of 2,300 pesos ($ 113).

The dollar has also won the Canadian dollar last year, going from 1.35 Canadians to $ 1.42 for $ 1. And it’s not just the exchange rate that benefits Americans north. Kayak found that the airline ticket was reduced by 18 % compared to 2023 based on recent travel searches until April.

Watch sales. For example, by March 3, Houseboat, Le Boat, offers a deal that saves travelers 13 percent tax on weekly rentals on Trent-Severn floating street in Ontario, 52 seats to go this year. Seven night trips start at $ 3,359 ($ 2,359).

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