It seems that the god's are conspiring against my return to Italy this fall (or even England). The dollar hit an all time low yesterday at $1.36 which means that the cambios in Roma are running $1.40. Even my ATM card (which runs pretty close to the exchange rate) is quoting $1.37.
Then yesterday morning on NPR some travel expert is saying that airlines are making almost no money on domestic flights and that all their profits are now on international flights. I was just shopping September fares from Phx and am in the $1500 to $1700 range/per person. For $500 more I can cruise. Downside? 16 days on the ocean out of a 21 day vacation.
When is Ryan air going to start flying to the US? (
In an interview in the Guardian on 12th April Ryanair boss stated he would offer flights to 5/6 US cities for $12 by the mid 2009!!! cities include New York(Mcarthur airport) and Baltimore, Providence in Rhode Island. It will carry 70 million passengers and will be a sep entity from Ryanair.
Also zoom is starting a daily London/New York service for £129
So maybe fares will come down to match that level of competition.
Posts: 1222 | Location: UK | Registered: 12 June 2005
I agree Rome Addict. I was planning on a trip to Italy last December when personal finances took a nosedive. If I recall the dollar was at $1.18 (or it could have been$1.23, I can't remember). I told my family "chin up, we'll go to Italy in Springtime 2008." They may be in for a disappointment though since costs keep spiraling upward. I wish I had a simple clearcut reason for this beyond the vague "its due to the widening trade deficit" answer. Not even sure if thats the reason.
Can we make an official "Europe is not for those american peasants" commiserating thread!
I will try to craft my .02 cents worth in a way that doesn't sound too political. It is not meant that way. In a discussion this week on one of the financial cable channels here in the us, it was strongly hinted that the depressed dollar is by choice and not fate. The discussion centered around corporate earnings statements and the impact of a depressed dollar. One of the statement was that 14 of the 19 Dow Jones corporations surveyed had significantly enhanced profits as a result of a weak dollar. If one subscribes to the theory that large corporations have many of our politicians in their pockets through political lobbyists, then it is easy to understand why the dollar doesn't get stronger.
Posts: 158 | Location: West Virginia | Registered: 25 October 2005
Originally posted by Django: I agree Rome Addict. I was planning on a trip to Italy last December when personal finances took a nosedive. If I recall the dollar was at $1.18 (or it could have been$1.23, I can't remember). I told my family "chin up, we'll go to Italy in Springtime 2008." They may be in for a disappointment though since costs keep spiraling upward. I wish I had a simple clearcut reason for this beyond the vague "its due to the widening trade deficit" answer. Not even sure if thats the reason.
Can we make an official "Europe is not for those american peasants" commiserating thread!
I have resources that few americans do. I have italian friends who will put me up for free (or minimal donation to their church), I KNOW where the cheap places to eat are, I can do Rome on 50 euro per day (minus housing). Problem is that now translates to approximately $70 US x 21 days is $1500. Add in $3000 airfare and you are looking at $5000. That is with no touring of Italy, just staying in Rome. Our trip in 2006 was $4,000 (and would have been $3700 but did the private vatican tour) and in 2004 was $3000. I can't take a 33% inflation rise in what is essentially discretionary spending.
I am afraid we are returning to the era of the "once in a lifetime trip" to Europe for middle class americans which is truly sad. World travel changes you and to not have the opportunity to slow trav is disheartening to say the least.
I have friends who have been pushing me for years to go to Thailand with them. Even though I don't have the resources that I do in Italy we are seriously considering it (even with the wheelchair) because the airfare is literally equal to Phx to Rome and the cost of living is so much cheaper!!
Right now I'm holding off on making a decision. Italy has my heart but my head is saying "don't go".
In an interview in the Guardian on 12th April Ryanair boss stated he would offer flights to 5/6 US cities for $12 by the mid 2009!!! cities include New York(Mcarthur airport) and Baltimore, Providence in Rhode Island.
Now THAT makes me happy. I'm thinking of moving back to Providence. Knowing Ryan Air will eventually be there is making it all the more attractive right about now. That alone could be the deal breaker!
Mary,
I am also very upset that the dollar keeps weakening. While I know how to travel cheap and enjoy myself no matter what, it surely does make things a bit more difficult.
Re Thailand, I came across a site detailing cost of living and it said a meal for two outside the major cities would be £4!!. So it would be considerably cheaper food wise,and transportation costs are at a similar level.
Posts: 1222 | Location: UK | Registered: 12 June 2005
I still think it's poor math to look at the exchange rate as an excuse not to travel.
The difference between 1.18 and 1.38 is 17%. Let's say you were going to spend $5000 during your trip. Your impact would only be $850, and that $5k only represents what you spend in Euro's, not airfare, or anything else paid for in US dollars.
What if, instead of the 30 Euro meal, you had a 25 Euro meal? Guess what? It negates the 17% rise in the Euro v Dollar. Can you find a hotel room for 17% less than you'd planned by doing a little more looking? Unless you are already planning on staying in the cheapest hostel then I think there are acceptible options out there.
And I haven't even touched on the all-time easiest way to save, during the time when you aren't travelling. It's a lot easier to save $850 over the 49 weeks of the year that you aren't on vacation than to try to save it during the 3 weeks you are on vacation. $17.35 per week is all you have to cut during the year in order to offset the 17% Euro boom.
If you put your mind to it, I'm sure you can identify plenty of ways to offset the hike in the exchange rate.
Best not to lecture people about their math or what works or does not work for them. We all see, feel and do things differently. It's a good policy to accept this fact. It helps to keep things friendly.
That said, I'm coming to you when I need to save some money!
Yes the 25 euro meal versus the 30 euro meal offsets the increase. But I don't have 30 euro meals. I have 25 euros for the whole day!! That's breakfast, lunch, dinner and gelato. There isn't a lot of "cheaper" eating when dinner is 10-15 euro, lunch is 4 -7 euro, cappucino and a roll from the bakery is 2 euro and gelato is 2 euro. That 50 euro per day is for 2.
And that 4 euro lunch? Roll from forno at campo fiori 1 euro, cheese sliced 1 euro, salami, 1 euro, coke or water 1 euro (and that's buying a 6 pack and breaking it up) - eating in front of the 4 Rivers fountain? Priceless.
that airlines are making almost no money on domestic flights
That expert would have been more accurate had they said, "that airlines are making almost no money". Just check out the earnings in the airline industry over the past few years.
quote:
One of the statement was that 14 of the 19 Dow Jones corporations surveyed had significantly enhanced profits as a result of a weak dollar.
This is a fact. If the dollar was stronger, then major (and smaller) companies who work in the world wide economy would have significantly lower profits, but the cost of travel to foreign countries would be cheaper in terms of the dollar.
I didn't mean it to be deragotory or belittling. Math is math, there's only one way to do it .
I don't understand how anyone could feel insulted or threatened by "5000 x .17 = 850"
For what it's worth, I can't afford to travel to Europe this year, and probably not next year either, but it's got nothing to do with the exchange rate.
I am worried about the prospect of "no frills" on long haul. Lets hope the "completely separate" will mean some comfort and some luggage for passengers as well fair working conditions for all staff. I am also concerned about the sense of promoting long haul flights when it is quite obvious that our little old planet is suffering. Wendy
Posts: 2747 | Location: Lightwater Surrey U K | Registered: 30 March 2003
“If one subscribes to the theory that large corporations have many of our politicians in their pockets through political lobbyists, then it is easy to understand why the dollar doesn't get stronger.”
I wish I had an answer or a magic ball to know what is going to happen by September. I'm planning to go to French language school and the continued increase in the Euro is hitting me hard. There was bad news in general last Friday with the continuing slump in the housing market and the low GNP. This BBC article has an overview. I've seen some projections of the Euro going to 1.40 USD by mid summer only to drop to 1.30 by year end. Not good.
I have a question, there seems to be a bit of a connection between the US interest rates and the Euro? What might happen to the exchange rate if we have a change in interest rates?
Posts: 7464 | Location: Edmonds, WA | Registered: 25 October 2001
I have a question, there seems to be a bit of a connection between the US interest rates and the Euro? What might happen to the exchange rate if we have a change in interest rates?
Succinctly, if US interest rates rose relative to the Euro rate etc., then the US$ would tend to strengthen. But, many other factors impact forex rates. The US Trade Deficit is deemed to be a factor in depressing US$ values. Then it starts to get complicated.
There is no way that the 12 dollar fare is going to stick. If you fill every seat 10 times it dosn't even cover overhead. Maybe the 129 gbp fare sticks but I bet that is without tax so realistically its closer to 500 dollars.
The people posting about high costs have to get over to Europe before they can spend there weak dollars, so with fares plus the dollar weakness it's more like a 20-30 % increase or more.If you could barely afford to go before you can't go now. RR
Originally posted by Robert Rainey: ...The people posting about high costs have to get over to Europe before they can spend there weak dollars, so with fares plus the dollar weakness it's more like a 20-30 % increase or more.If you could barely afford to go before you can't go now. RR
Well, that's different then. I was addressing the issue of exchange rates impacting the cost of a vacation. I agree that airfares can kill a trip pretty quickly.
But the airfares don't really have anything to do with the exchange rate.
I still think it's poor math to look at the exchange rate as an excuse not to travel.
I thought people were saying they could not afford to come to Europe, at least not in the conditions as before. I didn't realize - and don't think - Europe is the only travel option.
The dollar is weak only against the euro. Many currencies are pegged to the dollar. The dollar is not weak in those countries. Someone mentioned Thailand. It is a beautiful country - with great culture, great food, great sceneries. It is a good opportunity for north Americans to consider discovering places like Thailand.
As for whether the dollar weakness is a political conspiracy, people say that a strong dollar too is a political conspiracy. Ditto gold price. Ditto petrol price. Why would there be conspiracies behind all these circumstances and their opposite circumstances?
And I am still somewhat surprised that Europe commands such loyalty as to be considered by some to be the only destintaion possible
I agree,we have travelled to the US several times and only scratched the surface. We would love to visit many of your wonderful cities,National parks etc.
So maybe the answer is to explore at home/save some money till the dollar rises,which it will
I think sometimes we do not see the beauty on our own doorsteps. We are as guilty of this as anyone. We have travelled widely throughout the world but there are many places in the UK we have not seen. Our excuse is usually the weather.....we love the sun and great as the UK can be,sun or the lack of it is an issue
Posts: 1222 | Location: UK | Registered: 12 June 2005
As this thread is about Europe, it makes sense that people would express their frustration and concern about the Euro. It does not mean that Europe is the only travel suggestion. I have not taken it this way. I know Rome Addict, the author, travels outside the box.
I agree that it is a beautiful thing to broaden one's horizons and travel to other places. I am working at being more of a true adventurer myself. I am also surprised when people call themselves travelers and have only ever traveled to one country and refuse to go anywhere else! In my mind that's not really travel, that's just yearly relocation.
I look forward to exploring Thailand, Turkey, Morocco, India, Argentina and Chile. Those are just a few places on my list for future adventures.
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