A Strong Dollar Means Bargains for Americans Traveling Abroad

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A Strong Dollar Means Bargains for Americans Traveling Abroad

Last August, a hotel room in Europe priced at 200 euros was about $224. Today, travelers spending American dollars would pay only $208.

On the rise since last autumn, the dollar is strong compared with a number of foreign currencies, including the euro, the Japanese yen and the ********* dollar. And President Trump’s tariff threat is only making it stronger.

For travelers, the exchange rate bonus makes trips abroad extra appealing.

“We’ve seen an increase in international bookings as travelers look to maximize the value of their dollar abroad,” said Michael Johnson, the president of

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, a travel agency consortium. “The strength of the U.S. dollar has made destinations in Europe, Asia and South America more attractive, as travelers can get more for their money.”

In these dynamic and unpredictable times, whether the dollar will remain strong is anyone’s guess. To understand the fluctuations of the foreign exchange market and how and where to take advantage of it, we asked travel and financial experts to weigh in.

Strong present, uncertain future

A number of factors influence the value of the dollar. Among them, said Michael Melvin, the executive director of the

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at the University of California San Diego, are economic growth and geopolitical risk.

In recent years, “The U.S. has had exceptional economic growth relative to other countries,” Mr. Melvin said, noting the higher interest rates imposed by the Federal Reserve to combat inflation only made the dollar more attractive to investors.

International conflicts such as those in Ukraine and the Middle East also lead to investments in U.S. Treasury bonds. “The U.S. dollar has a safe-haven role to play in uncertain times,” Mr. Melvin said.

Talk of tariffs has created more volatility. When 25 percent tariffs were recently threatened against Canada and Mexico, their currencies initially plunged against the dollar. They have since recovered after postponements were announced, but still offer good value.

Alex Cohen, a senior foreign exchange strategist for Bank of America, expects the dollar to remain strong for the first half of the year as the new administration’s policies take effect.

The

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for travelers

The exchange rate benefit largely affects foreign travel purchases like food, gifts and hotel bills, rather than airfare, particularly for those flying on American carriers, where pricing is in dollars.

Travelers are noticing the potential for savings. Since November, bookings have been up 65 percent compared with the same ******* last year at

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, based in Clermont, Fla., according to its owner, Cristina Cunha, a member of the

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global network of advisers.

“Clients are feeling more confident about traveling abroad, thanks to the strengthening U.S. dollar and post-election stability,” Ms. Cunha said.

For those who have already booked foreign trips, the dollar bonus is an invitation to indulge, said Peter Vlitas, executive vice president of partner relations for

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, a travel services company with more than 100,000 travel advisers.

“Historically, when the dollar is strong, we have seen travelers who are already committed to their trips try to ‘buy up’ and get better value for their dollar,” Mr. Vlitas wrote in an email.

Adrian Mooney, the director of sales at the hotel and golf club

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in County Kildare, Ireland, said that for American guests, the exchange benefit is going to extras like spa services and horseback riding.

“The strong dollar is giving guests more spending power on the ground,” Mr. Mooney said.

How to take advantage of the exchange rate

Before leaving home, make sure your credit card does not charge a fee for transactions in foreign currencies, advised Kathy McCabe, the host of two public television shows “

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” and “

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.”

When using the card, pay in the local currency when vendors ask if you want to purchase the transaction in dollars or in foreign currency.

“Always choose the local currency,” Ms. McCabe said. “This will avoid dynamic currency conversion, which is a service that converts the purchase to your home currency at a marked-up exchange rate.”

She pointed to a

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that called the practice a “scam,” noting that studies had found the practice raised prices between 2.6 and 12 percent for those who opted for the converted currency.

When you need foreign cash, withdraw it from a bank-owned A.T.M., said Laura Lindsay, the global travel trends expert with

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, a flight comparison site, because bank A.T.M.s offer a better exchange rate and lower fees than private ones.

Where to stretch your budget

Among countries where the U.S. dollar goes further, Japan is a particularly good value as the yen — currently going for 152 yen to the dollar — has been declining against the dollar for the past four years, according to Mr. Melvin of U.C.S.D.

“Japan has been on ***** for U.S. visitors,” he said. “It costs a third less to go to Japan than just a few years ago.”

Expedia found Osaka to be among the cheapest hotel destinations for April travel, averaging about 26,878 yen a night, or $175.

The dollar doesn’t buy quite as many euros as it did in the fall of 2022 when it was slightly ahead of the European currency, but it’s not far-off today, at 0.96 euros to the dollar.

Last year at this time, a dollar bought about 17 ******** pesos. Today, it buys more than 20. Hotels in popular beach destinations often get around the exchange rate slide by stating their rates in dollars. But that’s less common at small hotels such as

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, in Puebla, which offers antique-furnished rooms from 2,300 pesos ($113).

The dollar has also been gaining on the ********* dollar in the past year, going from 1.35 ********* to 1.42 for $1. And it’s not just the exchange rate that benefits Americans heading north. Kayak found that airfare is down 18 percent compared with 2023 based on recent searches for travel through April.

Keep an eye out for sales. For example, through March 3, the houseboat rental company Le Boat is offering a

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that saves travelers the normal 13 percent tax on weeklong

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on the Trent-Severn Waterway in Ontario, a 52 Places to Go pick this year. Seven-night trips start at 3,359 dollars ($2,359).

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