LOL P_M, we were weren't we! I think your suggestion some weeks ago, on another board, was correct, we must be related. I swear to you, I have a thought or answer, go to post it and there you are on a post or two ahead of me saying the same thing I was going to post. It is too funny!!

Casual travellers can do little to minimize or maximize their currency conversion costs. Will your hotel discount your bill if you prepay? Ask. Eurozone travel is now a bit more economical because of the use of a common currency. Conversion rates are not important, local prices are. Local prices increase and decrease depending on customer demand. Project your total travel budget in dollars. Next, determine how much it will cost to convert it to Euros at different conversion rates. What rate can you afford? How much is your hotel to cost? Paying now may cost you 1% in interest lost on that amount plus the conversion cost. I suggest that future (summer) dollar value will decrease as demand increases for Euros.

Here's a fun chart to play with for those who would like a reference on the Euro/dollar exchange rate (or other currencies vs. the U.S. dollar):

http://www.x-rates.com/d/USD/EUR/hist2005.html

Just plug in the year and away you go.

Hi F,

I suggest not paying in advance. You don't know what might happen and stand to lose your full investmnt if you have to cancel.

As for predicting exchange rates: many years ago, when panning a trip to Europe, I crunched the numbers for the previous 10 years.

The $ always was always at its highest in Feb and lowest in August. So, I bought lots of foreign currency.

Of course, the dollar went up while I was there.