The U.S. Dollar Is Weak. Here's How You Can Still Save on Summer Travel
The past three summers, American travelers were able to take advantage of favorable currency exchange rates, allowing them to do and see more during international trips without breaking the bank.
Not anymore.
Briefly, in 2022, you could exchange $1 for slightly more than 1 euro. The conversion rate is now $1 to 0.87 euros, so the items you buy in Europe now essentially cost 15% more than when the currencies were at parity.
Of course, that math assumes flat prices, which may or may not reflect reality. (A cheap restaurant's €3 glass of wine is likely still €3, but expenses like hotel rates are more likely to adjust when exchange rates shift.)
But one thing's for certain: The U.S. dollar is weaker as a result of tariffs and interest rates. While this is inevitably going to be a thorn for Americans traveling to popular European destinations this year, experts say there are still ways you can save money on summer travel.
Book cheap flights while airfares are down
Unless you're traveling to a trending hotspot, there's a good chance you'll spend less money on flights for international travel this summer compared to a year ago.
These airfare savings can completely offset the extra trip costs stemming from the currency exchange issue, according to Kyle Potter, executive editor at Thrifty Traveler.
"The trend is pretty clear: Cheap flight deals to destinations throughout Europe and much of Asia — even in summer, and in particular, in mid- to late August and onward — are better than we've seen in several years," Potter says.
Average flight prices from the U.S. to Europe (currently $840 per round tip ticket) are down 13% in the past year, according to a Fourth of July outlook from Hopper. The average roundtrip ticket to Asia is $1,367, which is also a decrease of 13%.
Explore 'shoulder season' trips
Americans tend to travel internationally between early June and the second week of August, says Hayley Berg, lead economist at Hopper. So buck the trend: "If you can just shift yourself out of that busy nine weeks of the summer and travel after Aug. 18 or anytime in September, typically you save about 30%," she adds.
On airfare to Asia, that adds up to about $500 in savings. For Europe, that's a discount of about $300 per ticket versus the peak period.
Flights are usually cheapest on Tuesdays and Wednesdays. If your dates are flexible, see what deals you can find in the middle of the week — you can typically save about 10%, Berg says.
Leverage flight comparison tools and credit card points
Many travelers are loyal to one airline or alliance. That's understandable: Some folks are trying to earn or maintain status that confers benefits like lounge access, seat upgrades and free checked bags. Others are looking to accrue miles or just prefer the experience of a specific airline.
But if you need to get to a popular destination like Paris or Rome this summer on a budget, using an online tool to search multiple airlines can help. There may be an airline that you wouldn't even think to search with much cheaper flights than your normal carrier.
Converting credit card points to airline miles is often the most efficient way to redeem them. There are countless methods for using points that you can read about online, and while it can be complicated to figure out how you should use your credit card points for flights, free tools online like Seats.aero and Point.me can make the process a lot easier.
It's also worth looking into promotional transfer offers: For example, American Express has a 30% boost right now for point conversions to British Airways Avios points. Chase is running a similar 25% offer with Virgin Atlantic.
Choose destinations where the dollar goes farther
Cities like London and Amsterdam are expensive no matter how you cut it, but the higher costs for restaurants, hotels and experiences in these cities are even more pronounced when the dollar is weak.
If you want to save money on your summer trip and you're flexible on destination, consider somewhere that either has cheaper goods and services or a weaker currency (or both).
"Asia is the way around it," Berg says. "The euro and the US dollar have obviously seen a lot of fluctuation in the last five or six years, but if you look at the Vietnamese dong or the Thai baht, that's where your dollar goes a lot further."
For the cost of a hostel bed in Europe, you may be able to book a four-star hotel in southeast Asia.
Set on Europe but open to different countries? The Washington Post recently highlighted several less-explored options that travel experts recommend considering. For example, the Post writes that Albania offers a "similar vibe to Croatia, Italy or Greece," but a double room costs just $96 on average.
Save on hotels and spend wisely once you’re there
Just because you're on vacation doesn't mean you have to dine out lavishly and shop every day.
Prioritize what matters to you. Pricey museum entrance fees may be unavoidable if you're traveling Europe to see art. Likewise, if the purpose of the trip is to relax in a nice hotel, you may have to spend more than you'd like on lodging. But at least take advantage of online tools for scanning hotel prices if that's your plan.
Potter recommends using Google Hotels when you're booking accommodations.
"You can pull up a map of whatever destination you're looking in and really filter for exactly what you need, whether it's a four- or five-star hotel or a property from a specific hotel brand that you like," he says. "And you can actually see a long, long list of all of the different platforms that you can book that hotel from at different prices in order to get the best price."
Don't hesitate to call the front desk directly and ask about special rates and discounts. Booking last minute? Browse rates on a service like HotelTonight that partners with hotel companies to fill open rooms, sometimes at blowout prices. You can also compare the going rates for hotels to what's available on Airbnb and Vrbo.
Berg notes that hotels prices in busy cities, especially in the summer, are typically significantly higher for weekend nights: "You pay a huge premium to stay in a city like Rome or a city like Paris on weekend days," she says. To avoid that hit, some savvy travelers will book a spot in a city center during the week and venture farther out of town for the weekend to avoid crowds and expensive hotels.
Another more obvious way to keep your trip cost down is to take advantage of free activities as much as possible — living like a local and enjoying parks, beaches and promenades.
And when you are spending money, try to avoid ATM fees and foreign transaction fees. Banks including Schwab offer checking accounts with ATM fee rebates worldwide, and using one of these cards could result in some serious savings if you're a frequent traveler. As for credit cards, Money has you covered with extensive research on the best travel cards to use on your summer trips.
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