The Sinking Dollar & The American Traveller: Advice?

[K8-EEE]

Yet another reason to say, THANKS, BUSHCO!! Now I'm wondering if this BushCo US dollar is going to make our long-awaited & budgeted trip to France next summer unaffordable.

From what I read on this and other forums we can only expect the dollar to get weaker, so is there a way to minimize the damage? Like buy Euros now in anticipation of the exchange getting worse, or could it possibly turn around by then?

My daughter went to Australia last summer and the Australian dollars she didn't spend there lost a significant amount of their value when she cashed them in after the trip - and she was only gone 3 weeks!

Anyhow if there are any financial and/or travel-savvy DUers who can suggest some wise course of action for those of us travelling abroad on the crap BushCo era dollar, I'd be most appreciative.

[lumberjack_jeff]

1. I think that's backwards.

If I bought Australian dollars in June, they would be worth more in US dollars today.

Personally, I think it's wise to invest in non-dollar-denominated assets - they will inflate in value if the dollar continues to drop.

[Joanne98]

2. Stay home

[goforit]

24. yes...don't add to the global warming!

[AlCzervik]

3. just try and remember everything cost 2x what you think it will.

i'm going to Prague, London and Scotland in March and the sinking dollar won't stop us from going, instead of gifts for each other this Christmas we're putting it toward our trip.

[Red Zelda]

4. Go to some poor third-world place

New Hampshire comes to mind

[BB1]

5. Make friends abroad and stay with them for a while.

I live in Holland, so that seems to be off your route, but that's how a lot of backpackers in Europe get by. Make friends around the world, and stay for free almost everywhere.
They stay at my place too, if they're interested in bicycles and windmills. Or dope.

[K8-EEE]

21. The bride is going to try and find a friend to set us up there....

So if that works out, it would be awesome. I SOOOOO MUCH WANT TO GO TO HOLLAND!! That's so funny you mention it, on Thurs night I went to this show, have you heard of the band Venice?? They are from here (Venice CA) but they have a huge following in the Netherlands, anyhow they were going on one of those 3 day fan cruises that bands do, and most of the people at the kick-off were from Holland. THEY ARE A KICK!

[BB1]

42. Yeah, Venice is great!

I own a record (I think, but I'm not gonna check). Dutchies know how to party! (it's all the heineken we get out of the tap)

Try those friends abroad, you might get what you wish for.

[northzax]

6. only if you are going to buy a lot of euros

today a dollar buys .68 Euro on the global market. So if you are planning to exchange $1,000 you will get, in reality, about 628 Euro (given the fees for exchange) of course, the more you change, the smaller the percentage of fees, but you have to start getting into the tens of thousands of dollars to make it worthwhile. if you go to France and use your Amex or Visa, you will get about 645 Euros in real exhange (roughly the same at an ATM) since you get better rates than using a money changer. so unless you think the Dollar will drop another ten percent or so over the next year, you are better off saving your money on transfer fees and using credit and debit cards instead of cash.

[K8-EEE]

19. $1000 = $628, woooooboy O-U-C-H!!! Good advice on the credit card!

I didn't know that....thanks so much, DU-ERS ARE THE BEST!!

[AngryAmish]

7. Think about your carbon footprint

[K8-EEE]

32. sooo......you're anti travelling anywhere? for any reason?

Jeez! I can understand not driving a gas guzzler 60 miles to work every day or whatever, but you're not supposed to travel AT ALL? EVER? Don't you feel like a stick-up-the-butt lib stereotype having that attitude, how are we going to totally do away with travelling! What do you do if you're invited to an event out of town, send a hologram?

[SoCalDem]

40. You could fly Amish Airlines..

all flights are quite short..and have a low carbon footprint..

[AngryAmish]

46. Mostly, I send snark.

[Benhurst]

8. As Dinah Shore used to say when I was growing up,

See the U.S.A. in your Chevrolet!"

:rofl:

[damntexdem]

9. Buy your euros now, and hold onto them even if you don't go to France.

[Lydia Leftcoast]

10. Go to Japan: it's actually cheaper than Europe now

Sure, the dollar is sinking against the yen, (¥110-$1), but prices are still about the same as they are here. (I just came back from a trip last week.)

For example:

¥7000 for a single room in a "business hotel." This is not a capsule hotel, but a small room about as plain as a college dorm room, almost always with private bath (often with soap, shampoo, and other amenities included), sometimes including in-room broadband Internet and a breakfast buffet. These are invariably spotlessly clean and safe. If you prefer more traditional accommodations, outside the large cities you can stay in a minshuku (private home) for about the same price, with dinner and breakfast included.

¥500 for a box lunch from a convenience store or a rice-with-stuff-on-top meal from a chain restaurant, up to ¥1500 for dinner at a midlevel restaurant. (The restaurants you can afford always have plastic models or photos of their food outside, so you can always see what you'll get for what price.)

¥100-120 for vending machine drinks

Commuter train and subway fares start at ¥160 and increase by distance.

A Japan Rail Pass for 1 week costs about $750 and lets you ride the national railways freely, except for the fastest variety of Shinkansen.

The Japan Rail train that travels the 40 miles between Narita Airport and central Tokyo costs ¥3,000. If that's too expensive, you can take the private Keisei Skyliner from Narita Airport to Tokyo's Ueno district for about ¥1700, but the local train, which stops at every station, costs only ¥1000. (Do NOT take a cab, which will cost you an arm and a leg.)

The Japan Rail train that travels between Kansai International Airport and Kyoto costs ¥2200. The private Nankai Railways train that travels between Kansai Airport and Osaka is even cheaper, but I forget the exact price.

I can do a trip to Japan for $1000 a week, and the airfares are pretty reasonable after September.

[K8-EEE]

14. Should have mentioned, we are attending a friend's wedding

Shoot, I would LOVE to go to Japan!!

[Lydia Leftcoast]

25. Ah, well ask your friends for recommendations for low-cost accommodations,

including B&Bs or whatever the local equivalent is in that particular country. These are more fun than hotels anyway.

There are many types of Eurail passes, including those where you pay only for the days you actually ride the trains. They're cheaper than the regular passes.

In general, try to live like a local resident instead of like a tourist, and you'll get lower prices. Also, check to see what the customs are about ordering beverages with your meal. In some countries, ordering coffee or a soft drink with your meal will cost an exorbitant amount, while in other countries, it won't be so bad.

Above all, get a guidebook for your destination (the Rick Steves books are good for budget travelers, although he may seem condescending if you're an experienced traveler) and follow the hints in it.

[K8-EEE]

33. We might be staying in a friend of a friend's home....

The bride is really trying to find guest rooms in private homes for us visiting Murkins since this is a touristy type of destination so the prices will be expensive in July, lots of vacationers then. It depends on how many out of towners end up coming I guess. Maybe with the dollar situation and the economic situation here at home, it will be mainly locals, then our chances are pretty good.

[marmar]

11. Europe is expensive when the Euro=$1.24, which it was when I went last year....

I can only imagine what it must be like now.....

On a brighter note, Paris doesn't have to be terribly expensive, despite its reputation. There are lots of well-priced and good hotels in the mid- to lower-range (For example, a 2-star hotel in Paris can be quite decent; In London, by contrast, 2 stars can be scary). And very good, sub-20 euro dinners in Paris abound at the restaurants frequented by Parisians.
And with the excellent and inexpensive Metro/bus/RER system, getting around the greatest city in the world is a breeze.

[K8-EEE]

30. that's very nice to hear!

I think we will be staying 2 days in Paris -- and another 5 days (hopefully with friends of friends, keeping my fingers crossed!) in a village in Burgandy.

[mainer]

12. Southeast Asia's the place to go instead

Vietnam's still cheap. Or if you want to go closer to Europe, try Turkey. It's reasonable and beautiful and safe.

[K8-EEE]

17. Well, we are going to a wedding

So it's not like we are just looking for somewhere to travel to, it's to attend that specific event.

We are going to be staying in the same place they filmed the movie "chocolat!"

[DFW]

13. I'm paid in dollars and live in euros

I am paid in dollars, but work mostly in Euroland. My salary has experienced an
effective 55% cut in Euro purchasing power since 2001. Not fun. Especially since
I have a household to maintain here in Euros as well as keeping things alive on
the home front Stateside.

Every time the dollar hits some new low, we all say, this has to be rock bottom.
It hasn't been so far. The Euro just kept climbing. We have topped $1.47 to the
dollar a few times, but it has fallen back every time. Current stand is $1.4660.

At this point, it is hard to tell to what extent the movements are market-driven
and to what extent there has been any central bank intervention. If there has been
central bank intervention, it has been light and sneaky. If they want to, they can
intervene massively, too. It won't change the direction of things all by itself, but it dampens the speculators' keenness for doing huge paper transactions that move markets, but expose their instigators to huge losses if things go the wrong way.

Back to your specific situation. It depends on how much you are allowing yourself for a traveling budget. If it's $1000 or so, then don't sweat it. If the Euro moves 5%, a huge movement in foreign exchange terms, it's a $50 difference to you. If you're splurging and allowing yourself a $10,000 budget, then it starts to make a sizable difference. One bit of advice--check around in France for a decent exchange rate. Do NOT buy small amounts of Euros in the USA. You get nailed badly on the buy-sell spread for small amounts of foreign currency in the USA. Take your dollars with you, and exchange them overseas, unless it's a big amount. If it is, you can negotiate a decent rate with a foreign exchange dealer in the USA and buy Euro-denominated traveler's checks.

The dollar has already fallen hugely against the Euro. It's difficult to imagine it can fall much further. For all of AhmediNejad's and Chavez's howling, it's still immensely important in the world economy, and there are massively powerful interests (i.e. the Bank of China) holding untold billions that they would not like to see deteriorate further in value. Oil and gold have both taken a serious breather from their recent highs in dollar terms. The Euro may be running out of steam, too. Even if the Euro breaches $1.50, I don't see it staying there for long. The Europeans want to sell us stuff, and we want to buy it. The dollar is already at historic lows, so if there is anything we have that the Europeans want, they'll either buy it now or they don't want it.

So, there is no "wise" course of action that you can take, any more than you can tell someone where the Dow will be next summer. But come next summer, the end of the Bush administration will be close to visible on the horizon. Unless the presumed Democratic nominee is trailing 40%-60% in most polls by then, I'd say the dollar has a chance to be on the road toward a small recovery.

I sure as hell hope so, anyway--my German house needs some serious repairs!

[K8-EEE]

16. Thank you soo much!!!

Gotcha!!! Yeah our budget is more like $2,000 so that really puts it into perspective, thanks, we'll just hold tight then. I just had this nagging feeling that there was something smart I should be doing.

Wow in your situation, that's a huge chunk out of your wages, OUCH! I'll bet you must love to hear Dear Leader brag about all the tax breaks he's given Murkins.....UGH! When I see a "W" bumper sticker at the gas station I always feel like saying HOW MUCH GAS DID YOUR BUY-A-VOTE "TAX REFUND" BUY YOU, SUCKER??

[DFW]

22. Gas here is about $8 a gallon!

Take a horse.

If you want to keep tabs on the Euro vs. the dollar, you can
always check in here:

http://www.forex-markets.com/quotes.htm

for the latest.

And yes, don't sweat it if your budget is $2000. It's not worth
playing Gordon Gekko over the difference.

[K8-EEE]

34. Gordon Gekko!!

That took me awhile, LOL, OK that's funny -- I'm going all Gordon on my little France trip, ha!

[DFW]

41. Remember to demand a Gordon Bleu menu...........

[wuushew]

15. Eastern Europe does not use the Euro

My parents just got back from a trip to the Czech Republic which they enjoyed greatly.

[DFW]

28. Czech Rep. still uses its Koruny

Romania ostensibly uses the leu, but in practice counts in euros.

[freethought]

18. Stay Home and Wait.

Traveling in Europe is a truly great experience. I have told friends and family that, if they have the means, it is a great experience to get out there and visit Europe at least once. I only saw a small part of it, Rome, Milan, Venice, and Vienna. I could also say Zurich but that was just the place I flew in and out of.

With the dollar the way it is now you're better off just waiting. Right now for every dollar you exchange for Euros you will get about .70 euro, give or take. Not a good exchange rate at all and that does not even include the fees that will be charged to make the exchange. There might be ways to get a slightly better exchange rate but they will NOT be guaranteed to get a better exchange. Even if you do manage a better exchange it won't be all that much better than the spot rate.

My best advise would be the following:

If you had your heart set on France, just wait. Set the cash aside in an account or something an add to it. The dollar will rebound at some point. When that will be is anyone's guess, however you will at some point have a more favorable rate of exchange where you can stay longer, do more, see more, you money will go farther, and generally enjoy yourself more.

If your looking for an alternative and are willing to forgo Europe, at least for a time, and try something closer. Personally, I do like going to Mexico, especially the Baja Peninsula. Some great fishing and beaches and nearly as tacky as Cancun. Right now $1 U.S. will get you about 11 Mexican Pesos.

That's little consolation I know, but so long as that dingbat is in the White House I don't see too many things changing. I'll say it again, It may be best just to wait until the dim son is gone. Everything I have read seemed to indicate the dollar is going to weak against the Euro for some time to come.

[K8-EEE]

23. Well, if we wait we miss the wedding....

I'm determined to go if at all possible...

[freethought]

35. A wedding??!! Ooops!! Sorry my good person.

That changes things considerably. The only thing I can tell you at this point is travel frugally.
If the wedding wasn't in the cards I would still say wait.

[Mike03]

20. This has been on my mind too re: Japan

I remember when in the early 90s it was nearly impossible for an American to travel to Japan unless he/she was a millionaire--a hamburger cost twenty or thirty U.S. dollars. What the situation is now, I'm afraid to even look. It's probably not that bad compared to what it used to be, but certainly travel to the UK or, honestly, now even Canada, would be more expensive.

A worst-case scenario is that the dollar has far more to collapse. Can you buy the currency of the nations you wish to visit now and sort of lock in your costs before the dollar plummets further?

[Lydia Leftcoast]

26. See my post #10

A hamburger never did cost $20, not unless you stayed in the corporate luxury hotel circuit, which a surprising number of travelers do. A Big Mac at a Japanese McDonald's costs about $4.

A lot of the legends of Japan as impossibly high priced came from business travelers who did everything in the most luxurious way possible, because they were afraid of going out among the locals in an Asian country.

[Mike03]

27. Thank you--that IS where my info came from.

I worked for the CEO and President of a major bank, and that was his story of visiting Japan. Granted this was approximately 1993/4, but he convinced me it would be cost-prohibitive.

Thank you!

[Lydia Leftcoast]

29. As one who was in Japan last week and in the UK in June,

I can state with certainty that for a budget traveler, the UK is definitely more expensive than Japan. Perhaps you could go cheaper in the UK, but you'd be staying in the kinds of places with drug addicts passed out in the hallways. In Japan you have to go to the flophouse level to find something that's not clean and safe.

[Mike03]

31. Your posts are very helpful and encouraging

This has been a lifelong hope of mine, to visit Japan--specifically Tokyo. I can afford to spend money, thankfully, because I never travel or take vacations.

[Solar_Power]

36. You're better off going to Hawaii

France will be quite expensive next summer

[JCMach1]

37. Come to the Middle-East where everything is still pegged to the dollar...

Dubai or Oman are good deals...

Also, try Eastern Europe outside the Eurozone. Turkey, Nepal, Sri Lanka, and India are also still quite cheap.

However, the dollar is down EVERYWHERE!

[DFW]

38. So much for my expert opinion!

The euro just hit $1.48 here in Brussels today (and my take home pay just
lost another 1% in purchasing power here in Euro-land).

The banking crisis in North America was on page one of the Financial Times
of London, and the Dow slipped below 13000--not conducive to favorable views
on the US currency.

[SoCalDem]

39. WARNING... if you use your american issued credit cards

you will be charged in US dollars on the day they choose to post it to your account..

We found that out when we went to Tahiti, and some things ended up being considerably more expensive than when we "bought" them...

If I were you, I would convert a BUNCH of money into euros..I think the euro will be more valuable in a few months..not less..

I would also pay cash euros as much as possible ..

and try to eat at places that cater to locals..and if your lodging has a microwave & fridge, you could even shop at the local farmer's market and prepare a few meals on your own here and there..

don't be afraid to ask locals for bargain ideas.. just remind them that you are not rich like george Bush, and that you do not like him at all.. You might get a personal invite :)

[Javaman]

43. My wife and I canceled our vacation for next summer...

we were going to go to Glacier National Park. Between cost of the flight, the price of gas, it just wasn't workable.

We thought about taking the train, but because we don't have real vacation days here in the states, I couldn't get the time off.

Then we were planning a long term trip to Europe. Not anymore. Just isn't do able. :( I have never been there and wanted to trace the route my Uncle took during WWII. Oh well.

Welcome to the future of vacations.

I recall how my parents, where were married in 1947 went to Niagara falls. That was a big deal back then. I believe it will be again.

[tom_paine]

44. Invest in Euros. n/t

[treestar]

45. Have a great time, you will love it

Maybe you could buy some Euros now - there would be an interest factor, maybe you could earn Euro-interest - but I don't know how you can get an account in Euros, maybe if you are in a big city or online. You could do part of it and then follow the reports and decide how much more to do sooner as you go along. As you say, if the dollar recovered, you'd lose that gamble, so it depends on how much money you are talking about and how long you're going to be there.