Why Travel to Europe When It's So Darn Expensive?
With the withering dollar, why would anyone go to Europe these days? Yes, that's the question on everyone's lips and I wish they'd wipe it off.
I go to Europe twice a year to find facts to give to you freely. Surprisingly, I never seem to notice prices going up as fast as the dollar has gone down.
But this morning I was updating our Munich travel planner and found something interesting. The article recalled that we had stayed in the Hotel Europäischer Hof for € 99 in 2002. The link to the hotel was broken, so I set out to fix it. Well, was I surprised. According to the hotel's web site, their daily best rates for a double (drum roll please...) were now € 77.
You see, it's the sign of the market at work. Fewer tourists mean that smart service providers have to reduce prices to lure folks in.
So here's what we've learned:
- Prices of tourist services aren't rising as fast you you might have feared.
- Look at a hotel's web site before you book through a booking engine. You might be pleasantly surprised at the prices.
Hmmm .. interesting. But can this be too easy? What about currency exchange? What would the price in US dollars have been and be? Just did a quick look-see at xe.com and found:
2002 – $ 96.23
2008 – $ 113.76
Argh!
But taking inflation data into account, what you got for $ 96.23 in 2002 would be costing you $ 112.70 in the good’ ole USA today as well.
Basically … no change then. Or at least a development in line with general inflation in the US.
Let’s just hope your income kept track with inflation as well …
Yeah, but inflation, which you’ve obviously used to obfuscate the issue, is the same if you take one of those hideous “staycations” which is like no vacation at all, especially if you live out in the sticks.
So I stand by my (intended) words, it’s not that much more expensive than it was, or you might think it was, especially if your salary has increased more than inflation.
Sure, the weak dollar from the enormous deficit and fiscal mismanagement do make a difference. Sigh.
james
Yes, the poor exchange rate hurts. But, there are many ways to save money on a European vacation. If you are visiting big cities, don’t rent a car; pack light and take the train instead. Try picnics in Paris (pack a corkscrew and beach towel…it works out, trust me) and go native when possible.
Youth hostels can be a good choice, especially in those expensive German convention cities. We stayed in Muenster, Germany and in Malmedy, Belgium (near Aachen) last fall for very reasonable rates. The hostel in Malmedy gave us the world’s largest portable breakfast the night before we left…it was breakfast, lunch and part of dinner.
Sometimes thinking outside the box, combined with economic realities, can make a European trip look much more affordable.
For those just considering a European vacation, now’s the time to meet people from Europe, host someone in your home, volunteer with an international organization…our French exchange student asked our daughter to be a flower girl in her wedding, which meant we had not only an amazing French wedding adventure but also had a free place to stay during the festivities. Visa doesn’t know what “priceless” really means.
No obfuscation intended, James … I simply wanted to point out that the stay in Munich, despite being significantly lower in Euro prices, ist still significantly higher in Dollars.
That’s the “Argh!” bit …
But once you take inflation into account, the value-for-money has stayed stable for the Dollar-user. If you were lucky enough to get pay rises above the inflation rate, you’ll actually have to work less hours for your holiday …
I was kidding about the obfuscation thing, but I’ve not felt that Europe was expensive on any of my trips–and I’m trying to figure out why that is. Mostly, wine is way cheaper in Europe and food in a restaurant tends to be a better value there, although you can get a wide variety of “ethnic” foods, especially Asian inspired ones, at dirt cheap prices in the US. Europeans must think it nuts that they can buy a full, belly-busting lunch in a Chinese restaurant in the US for 3 or 4 Euro, a value you admittedly can’t seem to get in Europe.
james
Such prices are indeed unknown – the cheapest Asian restaurants would be in London (Chinatown), offering an “all you can eat” buffet for around € 8 or so. Quality is debatable. A similar buffet in Chester (England) cost us £ 7.99 per person, far better quality but around € 12 at the time.
Mind you – there is a very good Korean in Dublin who does a full meal for a very competitive price … see my review of Han Yang for further inspiration.
I think when you take into account all the value you get for your Euro, in terms of happiness and cultural experiences and adventures you can’t have anywhere else, Europe is still a good deal.
We’ve scaled back our Europe travel experiences in the last couple of years – we fly military space-available, we bunk in with friends (and host them later in the year) or stay in youth hostels, we eat picnic food – but we still manage to see and do so many fantastic things.
We’ve had to scale back at home, too, because of rising fuel and electricity prices, so it seems natural to do it when we travel.
Hotels are offering deep offseason discounts. Buy where you want, but Tour Operators and Travel agents are on top of the best rates.
Compare and get their prices as opposed to the Internet. Is it better to buy sight unseen or to talk to the “licensed” guy or gal who’s been there? You be the judge.
Airline fall & winter rates are dropping as you look at this. Avoid the crowds. Prepay as much as you can in US $ before you leave.
Avoid bad currency exchanges at airports, banks and local sharks where you pay commissions, fees and get c/c rate penalties up to 6% or more.
Shop smart and talk to the people who sell dreams not nightmares for a living and want your business now and in the future.
I am prejudiced but use a “travel pro”, instead of a mouse!
I go to Europe two or three times a year. The real sticker shock are prices in Michelin Star restaurants. I recently had had lunch at les Pyrenees in the Pays Basque. The tab without liquor was nearly three times as much in dollars as it was in 1999. Hotels, car rentals, groceries, admissions seem in line. My trips now include fewer Michelin Stars. Luxurylink.com is a great place for fantastic hotel prices, prepaid in dollars.
There comes a time when you have to bite the bullet and do what you’ve wanted to do. Now is the time for me. Sure it would have been nice to plan my upcoming trip back in the 70’s but that was then and now is now. As they say “we’re not getting any younger” so I’v e bought my air line tickets, made my hotel reservations and come May 09 I will be on the big bird and flying to the land of my grand parents!
Just got back form Naples, Sorrento and Rome trip. Was a little pricey but we chose modest restaurants, ate well and enjoyed all the sites we could fit in. Still a good value…
Nancy,
Interested in your comment regarding space-a travel! We are retired military, from where do you fly?
Thanks
My husband and I have recently retired and traveling to Europe is at the top of the list
of our things to do. Yes, we know it’s more
expensive, now more than ever but, we don’t have time to wait around. We’ve worked hard all of lives and now it’s time to play. We have to cut corners to realize our dreams of going to Europe, so be it. We’ll find a way!
Europe here we come!!!
I started travelling ot Europe and I love travelling; I have been able to travel despite the weak dollar. In the last two years, I’ve been to Rome, London, Paris, Wales, Athens, Mikonos Island (Greece), Barcelona, next month Berlin. I travel on a budget, how?(1) my sis is a flight attendant so I save big bucks on airfare we’re talking $330 for a European flight; (2) I choose budget hotels or bed and breakfasts or inns, I don’t use hostels coz sometimes I travel alone or with my boyfriend; but I don’t use pricey hotels–I’ve found places for as little as 30 euros for a beautiful room in a Greek guest house and 25 pounds for a beautiful B and B complete ith antiques in Wales (3) I travel locally; coming from New York City I’ve mastered the subway system and trvelling from airport to city; so a big city anywhere in the world is no different; I have never used a taxi except in Mikonos where I almost missed my boat; I use the train, the metro(subway), the tube and walk whenever I can (4) I research the books on any free openings to museums usually first Sunday of the month (5 ) I love culture, instead of pricey entrance fees I take pictures outside the landmark (i.e. Parliament, Tower of ondon, Colisseum, Eiffel Tower etc);, I visit beautiful churches in Rome or Spain which are free and I do a lot of walking to soak up the country, who wants to be cooped up in a museum with pricey fess when you can walk the streets of Barcelona’s Gothic quarter, or the streets of Rome—free and much more enjoyable. (6) I go to the local grocery store for souvinirs, you can get cheap pate in a local grocery store in Paris for only 2 euros, I got cava Spanish Champagne in a duty free shop for 3 euros; I always look for bargains. You don’t need to spend a lot for a memorable momento or goft.
The money I do spend is on food which you can’t get in the US, eat like the locals and it doesnt have to be pricey stay away from tourist traps, and I get souvinirs or clothes I can’t get in the US.
So that’s how I am able to travel so much on a budget but get the most out of my vacation. It helps my sis is a flt. attendant so start befriending them! I get to fly first class, if those seats are booked I mention it to the crew my sis works for the same line and get treated very well.
cheers@!!
Virg is my type of traveller – good onya! I’m an Aussie & I travel similarly. There is one aspect of luxury travel that I particularly enjoy and that is cruising. I use vacationstogo.com and they have some fantastic deals, particularly if you can organize yourself to go within a few months. Deals are often over 70% off. I usually select inside cabin (it’s only a place to sleep etc) and quite often I have been upgraded. If necessary I get my own visa/s (where necessary), and flights (I am a Frequent Flyer so I make use of my credit card to obtain points for many of my flights). When visiting the many countries whilst onboard, the ship will usually cover you for the day in regards to visa/s. I usually don’t spend a lot on the ships’ tours on offer, instead I take the map available & enjoy the sights – using my legs or local buses/trains. Locals are also very helpful regardless of language spoken.
Apart from being well looked after onboard, there ARE so many other opporunities to enjoy any spare time.
Just get out there, ask, seek, and ENJOY!
I started taking friends to Paris in 2000 and I charged (not for profit) $1700. This September I have to charge $3000 for the same trip (not for profit). It’s the Euro and the airline prices. Air France, after a signed contract, increased the fuel cost 60$ pp, then another 60pp, then 125 pp. Yes, hotels, guides and busses have gone up slightly, but it’s the euro and airline prices that will keep me on this side of the pond next year.