It is expensive to travel to Europe. And you’ve heard all the horror stories about lost luggage and canceled flights. For seasoned traveler Lewis Walker, an investment strategist and financial planner at Capital Insight Group in Peachtree Corners, Ga., traveling abroad is worth every penny. He breaks down the payouts for us:
Larry Light: The Louvre, the Vatican, Buckingham Palace – these sights are worth seeing, for sure. But why pay a fortune when you can vacation in the US for less?
Lewis Walker: Colin Treadwell is a travel writer for Tauck, a US-based high-end tour operator. He has extolled the virtues of travel and exploration as a path to “learn something new.”
And there is good news on that front. Yes, inflation is red hot and airfares have risen significantly compared to the recent past, but travel demand remains strong and there is some relief in the strength of the US dollar against major world currencies. Consider Europe as a destination.
Light: Break down the costs for us, please.
Walker: As of last week, it took $1.02 to buy a euro, the lowest level in years. On May 10, AFARAR
magazine reported that a year ago at a rate of $1.20 to one euro, hotels and other items in Europe were much more expensive compared to now. AFAR cited a new favorite hotel in Paris, the Hotel Paradiso, which offers rooms starting at €176 a night. At $1.20 to one euro, the cost was $211 per night. Now it’s $185 a night.
Light: Not only Europe is a bargain, right?
Walker: The strength of the dollar is not limited to the European currency. The dollar has reached the highest level against the currencies of key trading partners since 2002, even with US inflation rising. “The rise in the dollar has pushed down the euro, the British pound and the Japanese yen,” said the Wall Street Journal.
While currency swings are difficult to predict, many forecasters expect the dollar’s strength to continue, raising questions. A strong dollar makes many imports cheaper and US exports more expensive for foreign buyers. But for travelers freeing themselves after pandemic restrictions, a mighty dollar is a boon.
Light: Apparently a lot of Americans are taking advantage of that.
Walker: According to AFAR, summer 2022 travel bookings are up 200% compared to 2021. An experienced travel agent can be an asset in helping you sort through options.
For those with flexibility, a fall visit may be a better option. Europe in summer can be hot and crowded. If you wish to use the airline or other travel points, availability may be higher in the fall or during off-peak times. For winter travel, consider the warm southern hemisphere. With less demand, airfares can be less onerous.
Light: And the learning experience is priceless.
Walker: Saint Augustine of Hippo lived from 354 to 430 AD, a time when the understanding of the world was much less than it is today. However, as a seer, he wisely advised: “The world is a book and whoever does not travel reads a single page.”
