Here's why travel to Europe is no longer a 'screaming, bargain-basement' deal
Travel to many European nations looked like a bargain heading into summer and fall last year thanks to a favorable exchange rate for American tourists.
But the U.S. dollar has weakened considerably against the euro in recent months.
As a record number of Americans are expected to travel abroad this summer — with Europe atop the list of destinations — exchange-rate dynamics may make their trips more costly than it seemed in the not-too-distant past.
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«Currencies are like a marathon that never ends,» said Jonas Goltermann, deputy chief markets economist and head of foreign-exchange markets at Capital Economics. «Last year, the U.S. was just going faster and leaving everyone in the dust.
»Now, to some extent, that's changed."
When the U.S. dollar strengthens relative to other currencies, it means Americans can buy more abroad. Their dollar stretches further.
The euro hit parity with the U.S. dollar in July — the first time Americans enjoyed a 1:1 exchange rate with the euro since 2002.
Not all European countries use the euro — it's the official currency for 20 out of 27 European Union members.
By the end of September, Americans could buy one euro with just 96 cents. But the U.S. dollar has lost about 14% of its value against the euro since that recent peak; Americans needed $1.10 to buy one euro as of April 4.
Let's say a hotel room in Rome cost 200 euros a night. An American would pay $220 a night today versus about $192 in September.
«Europe for much of last year was a screaming, bargain-basement deal for
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