Can parity be far behind?
It’s sure looking that way when it comes to the exchange rate between the U.S. Dollar and the Euro. On my most recent trip to Europe last summer, I was still paying approximately $1.37 for each Euro.
But things have since changed in favor of US!
The Euro has dropped almost 37% since then, trading today at just $1.05.
Add a few more days to this downward trend and all signs point to a conversion parity which we haven’t seen in years.
What does that mean for a European getaway?
That nice $25.00 dinner in France will now run you just $18.75—tip included! And a $150.00 hotel room in Berlin will show up on your monthly credit card statement at just $94.50.
What’s more—thanks to cross-Atlantic competition—both domestic and foreign airlines have kept fares between the U.S. and the continent in check. And those often hefty so-called (evil) fuel surcharges tagged on to most international ticketing for the past several years have pretty well disappeared.
The bottom line: vacationing by Americans in Europe this spring, summer and fall is up considerably.
And for those who don’t possess a current passport, the turnaround time right now for processing is about six weeks.
So if you are contemplating a trip this year—or even in the not too distant future—it’s never too early to have a valid passport at hand!
Remember that adult passports for U.S. citizens are now valid for 10 years from time of issue. Kids passports though are only good for five years.
So get up. Get going. There’s a great wide less expensive world awaiting you across the pond!
Jack’s an independent travel agent with Shelton Travel at 913-649-2960.
Ooops, I MESSED UP!
I figured the 37% fall of the Euro against the Dollar incorrectly. And since the Euro is still about 5 cents above parity, here are my corrected calculations—which still slightly favor the Euro. But if the trend continues, the exchange rate could be 1-to-1.
Here then the correction:
That 25 Euro dinner in France last July would have cost me $34.25.
It now costs only $26.46. (…soon it could be even at $25.00.)
The 150 Euro hotel room in Berlin last July would have cost me $205.50.
It now costs only $158.74 (…soon it could be even at $150.00.)
Sorry for the calculation errors.
The Euro didn’t fall 37% either. It fell 23.4% since 1.05/1.37 – 1 = -.234
Now you could say that the dollar appreciated 30.1% since it went from 0.73 Euros (1/1.37) to .95 Euros (1/1.05)…. 0.95/.73 – 1 = .301
I’m guessing you weren’t a math major…
Other than the numbers, I enjoyed the article though.
Jack is just applying the same formulas Jr. uses for Star subscriber numbers.
I think you have me mixed up with Fitzpatrick, TIAD
You’re correct, I was never much when it came to math. Just know that EVERYTHING was extremely expensive last summer in Europe—but that it’s gotten cheaper since then……
Glad you enjoyed the article despite my mushed-math 🙂
damn you Obama.
All obummer’s fault.
Thank you obummer.
It makes for great vacations, but it makes for expensive and scarce exports from the US, which, in turn, makes the goal of doubling exports a pipe dream. Over time, it will mean layoffs in industries with a global reach, and while caviar may be cheap, based on the Russian economy, the Big Mac is not. Time to pick up that spare BMW or that Airbus 320 we’ve always dreamed of. Let’s enjoy those European vacations while we can, and let’s hope that European Quantitative Easing doesn’t last too long, or w will watch the exodus of jobs that we were counting on.
The hiiiiiiiiiiiiiills are alive with the sounds of mouth breathing ‘Muricuns…
Better than a tight-assed Brit any day of the week…