I’ve re-blogged this article from another blogger to show the rather dramatic drop in the Euro versus the dollar which has taken place recently. Just since we arrived in Italy, the exchange rate has dropped to 1.18 from 1.25.
Even though this is good news if you are looking to visit Europe, know that if you purchase a tour package you may not benefit from this drop in the Euro. The tour operator will charge you in dollars and will fix your cost at the time you book. This could work to your benefit or to your detriment depending upon what direction the exchange rate takes from that point. But, all things being equal, you should be able to book travel now at a lower cost that you could have only a few months ago.
Bad news for the European Union is good news for U.S. travelers. Over the past six months renewed economic concerns in Euroland have driven the area’s currency down nearly 16% versus the U.S. dollar. That means every country using the Euro, all 19 of them, is on sale. Every hotel, every meal, every taxi ride is 16% cheaper than it was just six months ago.
As with most sales, these bargains won’t necessarily last. So if you’ve had your eye on a shiny new European vacation, it’s just gotten a whole lot more affordable.
If you’re in the market for even deeper bargains look further east where the Russian ruble is down about 45% versus the dollar.