Summer in Europe won't come cheap
Weakened dollar translates into higher prices for U.S. travelers
By Chris McGinnis
CNN
(CNN) -- With the weather and the U.S. economy warming up, you might be considering a summer trip to Europe. If so, you better start saving your money now.
Transatlantic "sale" airfares during June, July and August are already in the $600-$900 range from the East Coast, and they will only go up from there.
But there's even worse news: The value of the U.S. dollar is at record lows, and not expected to strengthen substantially any time soon. Americans will find that a buck doesn't go nearly as far as it used to on the other side of the pond.
Rude awakening in 'euro zone'
In February, the U.S. dollar plunged to its lowest level since the euro was introduced two years ago -- nearly $1.30 for one euro. Ouch! A year ago, you could buy a euro for about $1, and two years ago, a euro was about 85 cents.
The dollar has strengthened during the last week, but not by much -- it's hovering at around $1.25 per euro.
Barring any dramatic change, you'll probably pay a whopping 30 percent more this summer than a year or two ago for everything -- from a café au lait in Paris or the entry to the Prado Museum in Madrid, to a hotel room in Dublin or a gelato in Florence. (Twelve countries are within the "euro zone.")
The situation is not much better in the United Kingdom, where the British pound still rules: One pound costs Americans about $1.85. And it's expected to rise to nearly $2 per pound by this summer.
Hotels, airlines offer breaks
To help ease the pain, special offers can be found from suppliers scrambling to attract Americans scared off by the pricey euro.
For example, Leading Hotels of the World, which includes many of Europe's top hotels, is offering a guaranteed dollar rate. Starting this month and lasting through the end of summer, all its rates are set at an exchange rate of $1.15 per euro. Also, consider buying package deals that include air and hotel, or all-inclusive tours. You'll save by prepaying for much of your trip in dollars.
But you'll pay a price in terms of freedom and flexibility to stay when and where you please. A good travel agent should be able to hook you up with a package that works.
Airlines are chiming in with deals, too. For example, British Airways will throw in free tickets to the London Eye (the giant Ferris wheel on the south bank of the Thames) to those booking holiday packages on its Web site. Plus, kids can stay free at many hotels participating in package deals.
Another idea: If you have to see Europe this year, consider a cruise, where most expenses are included in a prepaid fare. You can still find seven-night Mediterranean cruises starting at about $1,500 per person, not including air. (Many of the most popular European cruises have sold out, so don't expect a lot of price breaks.)
Head east for deals
Budget-conscious travelers should avoid the priciest, most touristy cities (such as London, Paris or Rome) and focus on off-the-beaten-path locales.
For example, consider Eastern or Central Europe, where they don't use the euro. The beaches in Croatia, where the currency is the kuna, are as beautiful as those across the Adriatic in Italy -- and they are cheaper and less crowded.
And a cold beer bought with Polish zlotys in Warsaw is going to cost you a lot less than one at a beer garden in Berlin, where you'll pay in pricey euros.
Flip side
Get ready for another British invasion. The weak dollar means that Europeans will be coming to the United States in droves this spring and summer.
With a strong pound and current low-season round-trip airfares in the $200 range between London and New York, Britons already are filling hotels and outlet malls in and around East Coast cities -- to them, the United States is one big half-price sale.
That's great news for U.S. airlines and hotels that are predicting sellouts -- and a warning to Americans planning summer breaks closer to home to make reservations now.
