The US dollar has not been this strong in Europe in two decades.
Earlier this month, the euro reached parity with the dollar, falling to its lowest level since 2002 and at times even bordering on a one-for-one exchange rate with the US currency.
Travel experts have mixed opinions on whether now is a good time for tourists to visit European countries that use the euro as their currency. Some encourage tourists to take advantage of this opportunity, while others advise against it and recommend waiting until the fall, when demand decreases and airport disruptions lessen.
Lee Thompson, co-founder of group adventure travel company Flash Pack, told FOX Business that it’s the best time to travel because prices are likely to rise significantly for tourists in 2023 due to higher fuel costs, taxes and exchange rates.
SUMMER TRAVEL PRICES SOLAR AMT AMID INCREASED DEMAND FOR FLIGHTS AND HOTELS
“The dollar is so strong against the euro and sterling right now and it may never be this cheap again,” Thompson told FOX Business. “2023 is projected to be more expensive to travel with hotels inflating their prices significantly, so now is the best time to travel.”
Travelers queue through security at London’s Heathrow airport on June 22, 2022. (AP/Frank Augstein/Associated Press)
The dollar is rising mainly because the Federal Reserve is raising interest rates more aggressively than other countries’ central banks in an effort to cool the highest US inflation in four decades.
Clint Henderson, managing editor of travel website The Points Guy, argued that while hotels and restaurants are more affordable due to the conversion rate, demand is still driving prices up.
“The problem is that demand is so high for Europe right now, prices are exceptionally high, much higher than before the pandemic,” Henderson told FOX Business.
HOW INFLATION IMPACTS SUMMER TRAVEL: CONSUMER IS BECOMING ‘SAVIER,’ SAYS CEO
Any “profit you make from currency equivalence” is being wiped out by the fact that prices are higher overall due to pent-up demand, according to Henderson.
These higher prices are one of the few reasons he suggests travelers shouldn’t travel to Europe until the fall.
Passengers queue at British Airways check-in counters in the departures area of Terminal 5 at London Heathrow Airport, on May 17, 2021. (REUTERS/John Sibley/File photo/Reuters)
“Staffing levels everywhere, including hotels and airports, are not where they should be,” Henderson said, adding that he has heard “story after story” about travel crises across Europe.
Certain airports, including London’s Gatwick and Heathrow and Amsterdam’s Schiphol airport, have asked airlines to limit the number of flights as they grapple with staffing problems and ongoing service disruptions.
CLICK HERE TO READ MORE ABOUT FOX BUSINESS
North American Airlines also wrote to Ireland’s transport chief demanding urgent action to address “significant delays” at Dublin airport.
If you’re looking to travel right away, places like the Caribbean, Colombia or Turkey are your best bet because demand is lower and the dollar is even stronger against those currencies, according to Henderson.
Greg Norman of Fox News and The Associated Press contributed to this report.
