With the dollar down & euro up...
 

how expensive is Europe nowadays for those of you just recently back from Europe, especially Paris?

It's definitely more expensive than it was a year ago, and considerably more expensive than it was 2-3 years ago. Still, IMO, Paris is one of the great bargains of the world for hotels and restaurants.

It is about the same price as it was in 1987.

As of todays rates, about 21% more!

Well, I'm not sure I agree with the "1987" bit unless that was supposed to be comical...when I was in both London and Paris less than two weeks ago the dollar was not going as far as it was when I was in Europe both last November and then again this past May.

But, get real, does anyone think that when the dollar falls in value that in some mysterious way people in Europe are going to lower their prices??? Of course, "everything is more expensive" but that isn't the issue, is it? THE issue seems to be, is it now so expensive that you won't travel?

Frankly, the prices in Paris are insane. I cooked a 4 lb. chicken for dinner one night and the bird cost me $32. Granted, it was considered the Filet Mignon of birds but $32 is insane. This is not a great time to be buying things in France or Italy.

Canadians have always has a lousy exchange rate.
100 Euros = 158 Canadian dollars.

IMO Americans have it easy.
100 Euros = 121 US dollars.

Canadians had it good when 1.20 CND bought a Euro!

Hi, I was in Paris last weekend after not having been there for about a year. I knew that there had been an inflation of prices after the euro change, but I guess the dollar hadn't tanked enough for me to really consider it. Well, I considered it last weekend! I know certain areas of Paris well, and I have favorite stores that have always been reasonable. Even factoring a 1/1 ratio I felt that things had gone up. I am no longer a tourist there though, it kind of depends on what you are interested in. I wouldn't expect museums and sightseeing to be that prohibitive, where it will get you is food and shopping. For example, I just paid 10E for an omelette fromage and a cafe au lait. Basically $12. No big deal but in the past it would have hovered around $8-9 at this cafe. I think this was the first time I had ever put "zero" on my declaration form out of Paris!
Things go in stages, now is the time for the Europeans to come here. For me, I am looking at domestic vacations until the dollar improves, but that is just me.

At any rate, the old tricks still work, try to get a hotel with a generous breakfast, a sandwich jambon for lunch out of a bakery and spend your money on a good dinner!

My question is, any of you who closely study those economic indiactors, think the dollar will improve this spring? Or is it being manipulated down to encourage American business to invest at home and overseas business to put money into our market?

It's was fairly easy to notice the difference; even between last spring and now. I tend toward shorter trips, so that spreads out and limits the damage. With Paris, a saving grace is always the availability of cheap, wonderful bread and the same goes for wine!

As for projecting what will happen to exchange rates going forward, that is anyone's guess. I tend to think that there is not a LOT of room for further deterioration in the exchange rate and a strengthening economy in the U.S. will have a positive impact. I don't believe it is a matter of manipulation, but simply of allowing some natural economic forces to run their course without a great deal of intervention. There are issues that occur for parties on either side of the exchange rate if things move too far in one direction or the other for extended periods of time. Over the long haul, my own guess is that an exchange rate near 1-1 parity between the Euro and the U.S. dollar is the most likely scenario.

It's expensive. Ouch! Really hurts.
We are going to plan our April trip to somewhere elese. The exchange rate is crazy high.
We paid up once, no reason to do it again.

Wow, the dollar-to-euro rate is now 1.21 to 1.00 eh? Back when I was last in Europe, in April of 2002, it was about .90 to 1.00. Good thing we chose to go when we did.

Look at it this way. Is it better to have a job and a low dollar, or to be unemployed and have a high dollar? Which situation is more likely to lead to a trip to Europe? :)

I'm in Canada, so I have the benefit of now having a higher Canadian dollar against the US dollar. Last time I checked the pound had dropped against the Canadian dollar and the Euro was about the same.

I think that even with the low US dollar, many people are often better off now. Airfares are often so low, and now in many cities Priceline is a great help for getting reduced price accommodations.

You spend 1,000 USD, you spent 1,200 USD. You spend 2,000 USD, you spent 2,400 USD.
Ouch! That make a difference, a real dent.

So, many of you are going to stop traveling to Europe? We won't.

Instead of spending 40% of our income on trips we'll be spending 50%. Not a big deal, is it? We just won't eat out too often and visit NYC but there is no way we will ever stop traveling to Europe

Paris is still much cheaper than NYC!!!

Hi JonJon,

Back in 1987 the dollar was worth 5FF. Allowing for inflation in the US since then, France today is as expensive as it was in 1987.

It is, of course, much more expensive than it was in 2001.

PS,

As Pat says, it is still cheaper than New York, including transportation from Atlanta.

I heard a bit on the BBC radio last night with a spokesman from HSBC predicting teh dollar still had 25% to fall.

The first time I lived in London, the rate was $2.60 / Pound. A pint of Bitter was 40p or about $1.00

Last time I was there the rate was $1.42 and a pint was 1 pound 20p or about $1.70

Inflation in Pound terms = 200%
Inflation in $ terms = 70%

Rich

In planning my trip to Madeira - what I've noticed is how "American" the hotel prices are - I can't help but wonder if the attitude is "well if they can charge that in America for such-a-such hotel, we can charge this" I read that the exhcange rate may go as high as $1.35=1 euro by this spring. Europeans are starting to pull their money out of US markets because their investments are flat due to the exchange rate, even with the gains in the DJIA and Nasdaq. Of course, American continue to buy foreign goods - gee, I wonder why. Don't get me wrong - I'm not bothered because Europe has gotten a little bit more expensive - what I'm perplexed about is how price and value seem to becoming more askewed (kinda like Las Vegas - which is hell on earth)