waiting for euro to go down = nonsense
#1
Original Poster
Joined: Jul 2004
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waiting for euro to go down = nonsense
so many people here are claiming the exchange rate is a major factor when travelling. this shows a basic misunderstanding of what rates of exchange are all about. when the euro goes down it will cost more euros for Alitalia to buy avgas or the Ritz to buy tea or for the parisian hawker to import those little tacky eiffel towers (acutally made in asia) when hosting you.the expenses are passed to the consumer. to get more bang for your buck look for european destinations with a cost of living which is lower than that of the US (e.g. bulgaria).
#3
Joined: Jan 2003
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That would of course be (somewhat) true if we were watching the Euro change in value against world currencies generally. What is happening, however, is that the dollar is dropping against world currencies generally, so your analysis is flawed.
The hotel that I used for skiing in Austria two years ago is currently showing approximately the same price (in Euro) for the half-board package I booked then. Unfortunately, two years ago the Euro was worth .92 USD, and now it's more like 1.34 USD, which represents a real cost increase to me of about 45%. If your analysis was correct, they should be selling the same package for fewer Euro, and that's simply not the case.
The hotel that I used for skiing in Austria two years ago is currently showing approximately the same price (in Euro) for the half-board package I booked then. Unfortunately, two years ago the Euro was worth .92 USD, and now it's more like 1.34 USD, which represents a real cost increase to me of about 45%. If your analysis was correct, they should be selling the same package for fewer Euro, and that's simply not the case.
#5
Joined: Jan 2003
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I don't agree with the OP's contention at all. The cost for travel in Europe for U.S. visitors is up in real (inflation adjusted) terms. That said, I think traveldawg offers good advice: "don't wait for the currency to be perfect". In the end, two commodities that we know we will all eventually run out of are time and opportunity.
#6
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Joined: Jul 2004
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actually flyfish, i think the 2002 price should have been higher but might have been kept artificially from rising due to other factors (911 ring a bell?) .according to your theory it would be the right time for Europeans to visit the US. now say you sublet a room in your house in NY to visiting French tourists. given healthy demand by the french wouldnt you increase your rates this year to compensate for the drop of dollar vs euro rate?
#7
Joined: Sep 2004
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traveldawg, just read your post and agree with you. I sure do not remember all the cost of everything from trips.
I just remember the trips (the beautiful and the few frustrations which made for funny stories later).
I sure do not travel and put charges on my credit card that I cannot pay off when the statement arrives. Sure do not spend money needed for bills that need to be paid monthly.
I do have a "mental" savings account in my savings that I know is for travel. And sure agree with the statement that packing 50% less and assuming the cost of a trip is going to cost 50% more than originally planned is a good guideline.
I just remember the trips (the beautiful and the few frustrations which made for funny stories later).
I sure do not travel and put charges on my credit card that I cannot pay off when the statement arrives. Sure do not spend money needed for bills that need to be paid monthly.
I do have a "mental" savings account in my savings that I know is for travel. And sure agree with the statement that packing 50% less and assuming the cost of a trip is going to cost 50% more than originally planned is a good guideline.
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#10

Joined: Apr 2004
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It's certainly anyone's prerogative to decide that thirty cents on the dollar -is not a big enough determining factor to put off going to Europe. I scrimpt and save, foregoing fine little nicities at home to be able to travel... well, for me, it's time to rethink my destination choices.
My first reaction to this thread was, What are you talking about? 30 cents more on the dollar is thiry percent. The trip I took to Italy in 2002 is now over $500 more in per diem alone. Every single thing I do will cost me nore, meals, trainfare, plane tickets, hotels.
Is it really so little a factor to everyone else? I feel like maybe I'm missing something. I know markets are cyclical, it just doesn't feel like it's going to swing back the U.S. dollar's way anytime soon.
Some of the little corners I hoped to explore are already reaping the benefits, and prices are going up. Maybe I am hoping to feel satisfied by exploring Mexico and some parts of my own country for a while.
My first reaction to this thread was, What are you talking about? 30 cents more on the dollar is thiry percent. The trip I took to Italy in 2002 is now over $500 more in per diem alone. Every single thing I do will cost me nore, meals, trainfare, plane tickets, hotels.
Is it really so little a factor to everyone else? I feel like maybe I'm missing something. I know markets are cyclical, it just doesn't feel like it's going to swing back the U.S. dollar's way anytime soon.
Some of the little corners I hoped to explore are already reaping the benefits, and prices are going up. Maybe I am hoping to feel satisfied by exploring Mexico and some parts of my own country for a while.
#11
Joined: Jan 2003
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The simple truth is that the difference does matter to some people and it doesn't matter to others. It depends on how much discretionary income you have and whether you're willing to spend more of it on travel.
I agree it's a drag that the dollar is so weak, but as has been pointed out, the Canadians and the Australians have been dealing with their own currency weakness against the dollar and the euro for quite a few years.
What is fascinating to me is the sense of outrage, of what-is-the-world-coming-to?, that is expressed by so many posters. Speaks volumes about the American sense of entitlement, that we think that our currency should always be the strongest in the world.
If you look at some of the reasons why the world has less confidence in the US dollar, you will find a lot more serious issues to be concerned about than whether you can afford your next trip to Europe.
I agree it's a drag that the dollar is so weak, but as has been pointed out, the Canadians and the Australians have been dealing with their own currency weakness against the dollar and the euro for quite a few years.
What is fascinating to me is the sense of outrage, of what-is-the-world-coming-to?, that is expressed by so many posters. Speaks volumes about the American sense of entitlement, that we think that our currency should always be the strongest in the world.
If you look at some of the reasons why the world has less confidence in the US dollar, you will find a lot more serious issues to be concerned about than whether you can afford your next trip to Europe.
#12
Joined: Nov 2004
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It all depends on how much you want to spend, where you want to stay, what you want to do once you gt there. And if you really want to be a hotel snob I guess it is going to cost more than before.
I'm sure the Europeans who want to vacation in the USA are quite happy with the "poor" exchange rate right now
I'm sure the Europeans who want to vacation in the USA are quite happy with the "poor" exchange rate right now
#13

Joined: Apr 2004
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marilyn, good points all. It's not entitlement that I feel, tho it does sound like it, just a metal adjustment to how the changes affect my buying power. And you're right, there are more serious fallout to think about. Intrepid1, on the hotel snob, yes, it's a change. This year, with some research and the help of this forum, I was able to find intimate little hotels that were in a different price range, but ultimately satisfying.
#14
Joined: Jan 2003
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got1tiel - no, try again. The location in Austria that I was referring to was Ischgl - near as I could tell, we were the only Americans in town. Ischgl is unknown in the states and is primarily a holiday location for Germans. I'm quite sure that 9/11 had nothing to do with their pricing in 2002 (actually, it was March of 2003).
#15
Joined: Jan 2003
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Nina, I didn't mean you specifically. There have been a lot of threads on this subject lately, mostly one set of people complaining and another set saying suck it up and get over it, or don't go.
I'm sympathetic (and not thrilled that our next trip will be more expensive) but hey, no one ever promised a strong dollar for our lifetime, did they?
I could say more, but I'd send us into a political downward spin and get the thread deleted, so I'll hold my tongue.
I'm sympathetic (and not thrilled that our next trip will be more expensive) but hey, no one ever promised a strong dollar for our lifetime, did they?
I could say more, but I'd send us into a political downward spin and get the thread deleted, so I'll hold my tongue.
#16
Joined: Dec 2003
Posts: 316
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Just make a decision...go or no go but don't agonize over it for MONTHS. Nobody cares. You cannot impact the currency values and constant griping won't change them. Never saw too many posts about how great it was when the rates were better. Most of the poeple in this country would love a European vacation but it is just not within their reach..even if the dollar was double the value. Go to the expensive northern countries when the dollar is high, go to the southern & eastern countries when the dollar is weak. But stop griping..it's pointless.
#18
Joined: Dec 2003
Posts: 776
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I agree with Flyboy, time and opportunity are more important. If you really want to go someplace, you can always find a way: get a hotel that's not as central or 3* istead of 4*, pack picnic lunches or eat like the locals do (I found some really terrific eateries this way), find out when the free museum days are, do minimal shopping.
You can pick cheaper destinations such as Eastern Europe or just spend a few days less in a more expensive place. And at home, bring bag lunches, cut out the fancy coffees, cut back on shopping to save.
I traveled quite a bit as a student with very little money. I wouldn't trade that experience for the world. I believe the dollar was doing poorly then too (early 90's).
I enjoy going to Western Europe. So, with the poor exchange rate, I find I am spending more time doing research for bargains. However, this is part of the fun of traveling for me. I finally have enough FF miles to get an overseas ticket. So, I am also planning much further in advance so I can use FF miles and hotel points (This planning far in advance is a hardship for me since I'm more of a last-minute person.)
I don't want to look back someday and regret not traveling when I could. You never know when circumstances will change (health becomes bad, needing to care for a sick loved one) which may limit your ability to travel.
Yes, the poor exchange rate is painful, but where there's a will there's a way.
You can pick cheaper destinations such as Eastern Europe or just spend a few days less in a more expensive place. And at home, bring bag lunches, cut out the fancy coffees, cut back on shopping to save.
I traveled quite a bit as a student with very little money. I wouldn't trade that experience for the world. I believe the dollar was doing poorly then too (early 90's).
I enjoy going to Western Europe. So, with the poor exchange rate, I find I am spending more time doing research for bargains. However, this is part of the fun of traveling for me. I finally have enough FF miles to get an overseas ticket. So, I am also planning much further in advance so I can use FF miles and hotel points (This planning far in advance is a hardship for me since I'm more of a last-minute person.)
I don't want to look back someday and regret not traveling when I could. You never know when circumstances will change (health becomes bad, needing to care for a sick loved one) which may limit your ability to travel.
Yes, the poor exchange rate is painful, but where there's a will there's a way.
#19

Joined: Jan 2003
Posts: 13,215
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The exchange rate is a consideration when travelling . . but we spent a week in NY last fall that cost about 20% more than a week in London trip this fall . . travelling is just plain expensive . . the exchange rate is one factor!
When I lived in London in the 70's the rate was 2.65/£ . . 1.90 is looking pretty good now!
The € debuted at $1.20 . . not that far from where it is now.
Rich
#20
Joined: Jan 2003
Posts: 74,699
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Hi,
I just came back from a week visiting my children in Sacramento and Tucson.
RT airfare from ATL was $525 pp.
Hotel in Tucson was $80/day w/bkfst.
A similar hotel in Sacramento would have been $120/day.
Eating out was about the same price as in Paris this past May.
For a few hundred more, we could have spent the week in Paris.
(Of course, there is the non-monetary pleasure of visiting the children and grandchildren.
)
I just came back from a week visiting my children in Sacramento and Tucson.
RT airfare from ATL was $525 pp.
Hotel in Tucson was $80/day w/bkfst.
A similar hotel in Sacramento would have been $120/day.
Eating out was about the same price as in Paris this past May.
For a few hundred more, we could have spent the week in Paris.
(Of course, there is the non-monetary pleasure of visiting the children and grandchildren.
)

