Traveling to Europe this Summer or Thinking About it? Here Are the Latest Updates You Need to Know
If you are like most travelers going to Europe this summer, you likely booked your ticket months ago and you might well have missed a very important development affecting your upcoming travel. While the news lately has rightly focused on the heat wave and the fires it's causing in Europe, there are two other things to consider: one is very positive and the other is a new reality related to #travel.
First, traveling in Europe is not any better than traveling within the U.S. these days where canceled flights and airport hassles have become the new normal. The silver lining in all of this is the exchange rate between the euro and the U.S. dollar means travelers will be benefiting from a cheaper #euro.
For Americans, Europe is on Sale?
On July 13th, the EUR/USD FX spot rate (the price of euros in U.S. dollars) hit parity for the first time in 20 years, meaning one euro equals one U.S. dollar (today, it’s ~$1.02 per €). Since the beginning of last year, the euro has depreciated 20% against the U.S. dollar.? What does this mean? Europe is on sale, approximately by 15-20% from average levels over the past few years.
Since the news broke of the strong dollar, American travelers have begun going on spending sprees in Europe. They are buying more luxury goods such as high-end designer handbags, and fancy Bordeaux wine, and are also spending more at restaurants as well as booking stays at high-priced hotels. Some travelers have even booked return trips for later this year. The euro’s decline in value has offset the local inflation for American travelers, providing temporary relief from soaring inflation back home.
Despite the Weak Euro, Flights to Europe are Still Expensive
As for #airfare, it’s still quite expensive to fly to Europe, even if you try to pay in euros through a European carrier as they quickly adjust fares based on currency fluctuations. That being said, it never hurts to try.?
You can try by looking on the airlines’ websites directly and changing the location of the home country on their sites. For instance, changing the country location from the U.S. to France for Air France. Sometimes this works, other times it does not. In the past, this tactic has worked for us with Norwegian Air back when they flew transatlantic. We're sad that they no longer do, being that they were always our favorite international low-cost carrier. Here’s hoping that JetBlue will expand its European routes beyond London (wishful thinking, we know).
Much like airfare, hotels are still pricey since the majority of people have already booked their summer travel.
How to Get the Most Value Out of the Euro
In our opinion, the best way to get more bang for your buck is to travel to Europe during off-season months such as October or November. During those months, availability will be far more open, prices will become more reasonable, and the best part: you can lock in your rate now
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Something to Keep in Mind
One note of caution: travel to and within Europe is currently pure chaos, caused by a combination of delays, cancellations, and airline and airport staff striking due to overworking and being underpaid. Only to be coupled with a surge in travel demand all across Europe. So, if you are booking flights, especially in the next couple of months, try these tips to mitigate some potential problems and excess stress:
Tip #1: Book all travel on a credit card that has great travel coverage and insurance (like the Chase Sapphire or American Express Platinum cards). If anything goes wrong, such as lost bags, delayed or canceled flights, etc., they will be able to reimburse you.
Tip #2: Book flights directly with the airline. Unlike a third-party booking agent, the airline itself will be in a much better position to help you if problems arise. If you book your flight with a third party, the airline will most likely direct you to the third-party service provider that you used to get any issues resolved.
Tip #3: To avoid missing connecting flights, book direct flights as much as possible.
Tip #4: If you are not able to book a direct flight, be sure to leave plenty of layover time
Tip #5:? Before embarking on your flight, be sure to pack at least a few days' worth of clothes in your carry-on luggage, in the event your checked-in baggage gets lost by the airline. We highly recommend doing this because more and more airlines are losing luggage this summer.
Tip #6: Pay close attention to this tip. In the event, your flight ends up being delayed by more than three hours or if your flight was canceled less than 14 days prior to the scheduled departure date, you are entitled to compensation according to EU law
Last, But Not Least
Did you really think that we would end this newsletter without providing one last credit card tip? When paying for anything abroad, make sure to use a credit card with no foreign transaction fees. You should always make sure to pay in the local currency (euro) as you will almost always get a better rate from your bank than the local bank processing the currency conversion.
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Authors: Bruce Garner and John Taylor Garner