In case you’ve not kept an eye on foreign exchange markets, you should know that the dollar is soaring compared to nearly every major currency in the world.
That means that right now during the so-called “dead weeks” is not only a very cheap time to fly to Europe, Australia or Japan, it’s also a very cheap time to be there. As of today, the euro is at about $1.11. The British pound is about $1.50. Aussie and Canadian dollars have dipped to right around 80 US cents.
“I was worried about our marketing events in Europe being over budget this winter. Now it appears we’ll be at or below budget due to the favorable currency fluctuations,” wrote a TravelSkills reader who manages events for a global tech company.
So how much will you save on your next trip to Europe? Let’s say you paid 350 euros per night for a room at the W Paris last spring when the exchange rate was at $1.40. Three nights at that rate would run $1,470. If you went back this week and paid 350 euros for three nights (@$1.11 per euro), that would set you back $1,165. That’s a savings of $305– more than $100 per night. Not bad!
There’s probably nowhere that the dollar has strengthened more than in Russia, where travel deals will likely abound. “We are encouraging guests to consider Russia as a destination for 2015 – favorable exchange rates against the ruble, combined with lower prices, will make it an exceptional value for North American travelers this year,” says Richard Marnell, SVP of Marketing for Viking Cruises.
Another positive about a strong US dollar is that it could help drive down hotel rates in overpriced New York City, which relies on demand from international guests more than most cities. With their newly weakened currencies, Europeans may have to downgrade accommodations…or postpone trips. That dip in demand could make the Big Apple cheaper for Americans.
We grabbed the following charts from XE.com to illustrate just how quickly several major currencies have crashed compared to the US dollar over the last year.