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Still haven’t booked your summer vacation? Here’s a tip: If you’re in the US, now is probably the best time in ages to come and visit Europe. Not only has most of the continent finally shed most Covid restrictions, but the euro is at its cheapest in about six years, too. In mid-May, it dipped below the $1.04 mark, bringing it tantalisingly close to parity with the greenback.
How good a deal is this really, taking inflation into consideration? The last summer you could travel freely — in 2019 — the euro was only a bit more expensive. The average conversion rate that June was about 1.13 dollars to one euro.
In comparison, if you took off to Europe in the next week or so, some things would cost you slightly more — like visiting a Lithuanian castle or enjoying a Pils in a Berlin beer garden — but on the whole, you’d be saving money even with the post-pandemic price rises (gondola ride, anyone?).
We’re comparing prices to 2019, but what about 1985 — when Americans were flocking to Europe in record-breaking numbers to make the most of the strong dollar, a la that boomer classic “National Lampoon’s European Vacation� While the euro wasn’t introduced to the world until 1999, sterling is actually cheaper today than it was back then.
On the other hand, the strong US dollar is making a visit to America pretty expensive for everyone else. What’s more, tourists — and American vacationers returning home — also have to pay for a Covid test just to enter the country.
That might make sense if the US was considering enforcing stricter Covid rules again, says Tyler Cowen, but for now, keeping a few
infectious people out of the country while the virus is spreading freely anyway won’t really make a difference. It might also be putting off Americans from making the most of the cheap euro.
Meanwhile, the widespread cost-of-living crisis is finally starting to crack British shoppers. Consumer confidence slumped to a level last seen in 2008.
Yet the Brits sure aren’t letting anything get in the way of their getaways. Andrea Felsted notes that international travel had its best month since before Covid in April, and holiday spending on luggage is up. That may have an impact on other parts of the economy, however.
Not sure whether you should take the time off work in the first place? You’re not alone. More than half of Americans leave vacation time on the table — on average, 33% of their allowance goes unused — and many feel like their bosses send mixed signals about taking time off.
—Bloomberg