Many Americans can’t afford to even consider travel right now, hobbled by record-high inflation and interest rates. But for the lucky few who can, this just might be the perfect time to book a trip to Europe.
As a result, U.S. travelers ready and able to jump on a good deal can take advantage of this moment to jet across the Atlantic and stretch their dollars further, saving money on food, souvenirs, and other goods purchased in the local currency.
(The opposite is true for would-be travelers to the U.S. from Europe, and other overseas destinations, and for countries who borrow money in U.S. dollars because their own local currencies are too volatile.)
“It’s certainly the best value time to be going [to Europe] that we’ve seen in decades,” Scott Keyes, the founder of Scott’s Cheap Flights, told MarketWatch. “The U.S. dollar compared to the euro or the pound over the past six months is 20% improved, and what that means is that if a hotel night had cost you $100 six months ago, you’d be able to get that same hotel — assuming the price is the same — for $80.”
“‘If a hotel night had cost you $100 six months ago, you’d be able to get that same hotel — assuming the price is the same — for $80.’”
But be warned of one important caveat: Inflation is also a problem in Europe. It’s still important for consumers to consider cost-saving measures like being flexible with their date of departure and return, and ordering currency from their local bank before traveling so they can avoid steep conversion rates at airports, Hayley Berg, lead economist at Hopper, an online platform for travel booking, told MarketWatch.
Still, after surging earlier in the year, the cost of airfare has fallen. Good deals are popping up for travelers looking to fly throughout Europe, with round-trip flights to Spain and Portugal under $400 on many routes, Keyes said. (This isn’t necessarily true across the board, though, especially for flights across the Pacific to Asian countries with currencies that are weaker against the dollar, Keyes said.)
“Those deals, which had been pretty elusive over the summer, are now back in a big way as we get into a more shoulder season of travel into the fall and winter,” Keyes said. “Since about June, average fares have started coming down — and coming down quickly.”
The summer is over and the kids are back at school. September through the first week of November is usually a pretty good time to fly price-wise compared to the spring and summer, Berg said.
“When you layer in the currency — the increasing value of the U.S. dollar compared to some of these other major regions where we do have a lot of American tourism — it is another thing that makes these trips look more attractive,” Berg said.
Not everyone can afford to travel
Speaking of the rise in the cost of living: Splashing out on a vacation is a treat that precious few Americans can afford as they cope with surging housing costs, higher food prices, and dwindling savings.
As some Americans race to book overseas flights, others are lining up at food banks, pleading for rental assistance, and taking on second jobs or extra work.
So, if you have extra cash and you’ve already had your summer vacation, it may be worth considering spending your money elsewhere, namely on those who are less fortunate. Consider donations to organizations that help newly homeless students make it through the school year, groups that provide diapers to people who can’t afford them, or food banks, instead.
“Splashing out on an international vacation is a treat that precious few Americans can afford as they cope with surging housing costs, higher food prices, and dwindling savings. ”
It’s worth remembering that a stronger dollar can increase prices for other consumers around the world.
Even if you have plenty of cash set aside but are on the fence about an overseas trip, remember that you may still have to budget for potential domestic travel this holiday season, especially if you need to see family or friends in another state, and that is “almost always an expensive endeavor,” Keyes said.
Though the best time to book holiday travel passed in June and July, the second-best time is essentially right now — while the worst time to book is coming up in November. Consider this: Can you afford to book two flights in the next several weeks?
But say you don’t have to travel far to see family. Then you may well consider traveling internationally over the week of Thanksgiving. That’s the “hidden best week for international travel,” Keyes said.
“Thanksgiving is a week when domestic airfares get very inflated because everybody is traveling home to visit their families, but all those people who are traveling domestically are, by definition, not traveling internationally,” Keyes said.
“In late November, not only do you see far fewer international passengers, even then it’s already the low season for international travel,” he added. “You see flights that are the same cost to fly to Minneapolis as it costs to fly to Madrid.”
