More Bang for Your Travel Buck

November 19, 2008 | Uncategorized

I know it’s hard for many people to think of a vacation when the economy is in such a mess, but if you can refocus for a moment I’ve got some good news for you.

That vacation you’re not thinking about has just gotten less expensive. And it doesn’t have anything to do with declining prices because of the Wall Street mess either.

What has happened is that the dollar has been slowly and quietly been gaining strength against some other currencies during the past few months. That gives you a lot more buying power in some overseas vacation spots.

For example, look at the approximate increase in value of the dollar versus some other currencies since June 1. The dollar now buys you 23.4% more Euros, almost 35% more British Pounds, 47% more Aussie dollars, and 33% more South African Rands, It goes 36% further in Norway, about 15% In Switzerland and a whopping 89% in Iceland.

Not all destinations are offering fire-sale prices on their exchange rate, however. Argentina’s peso has only changed about 7% in our favor and China has become more expensive, for example.

The dollar hasn’t returned to its glory days, of course, but there’s more to the picture. Despite air fares staying relatively high — although you can snag a few good bargains if you look around — hotel prices are edging downward due to that better exchange rate. Remember that great exchange rate in Iceland? According to Forbes, you can now stay in a four-star hotel in Iceland for $70.00 per night. Basically, the entire country is on sale.

But the really good news is that you can now find hotels that are waving about some good deals to lure you in.  Just log onto places such as TravelZoo, Shermans, Orbitz, etc. or Google some of the better-know chains and see what deals you can unearth. You may be surprised.

Jim Ferri