Your dream trip to Europe just got ‘a lot cheaper.’ Here’s why, experts say

If you’ve ever dreamed of a trip to Europe, now is a cheaper time to go, according to experts.

For the first time in 20 years, the euro and the U.S. dollar have an exchange rate of almost one-to-one, The Guardian reported. The euro has weakened recently while the U.S. dollar has strengthened as the currencies near parity.

That conversion rate is making travel to Europe anywhere from 10% to 20% cheaper for Americans, USA Today reported.

Why are the euro and dollar almost equal?

The value of the euro has fallen recently due to the war in Ukraine, which has sparked concerns about a possible energy crisis and recession across Europe, CNBC reported. Conversely, the value of the dollar has increased due to the Federal Reserve raising interest rates.

Last July, 1 euro was worth around $1.18, according to data from the Federal Reserve. By late June 2022, 1 euro was worth around $1.05, and by July 8, 1 euro was worth $1.01. Today, the euro’s value is about 15% less than this time last year.

What does that mean for American travelers?

In short: “Historically expensive Europe is now a lot cheaper to visit,” Matthew Kepnes, an expert traveler who shares advice about saving money on travel on his blog Nomadic Matt, told McClatchy News.

Sara Rathner, a travel expert at NerdWallet, told CNBC that “it’s kind of like getting a 15% discount. It’s more gentle on people’s travel budgets.”

Mark Zandi, chief economist at Moody’s Analytics, told USA Today that some discounts could be even larger.

The “stronger dollar” is “helping offset the cost of airfare and hotel room rates about 10- to 20% cheaper,” Zandi said.

Tourists in Europe will notice the strength of the U.S. dollar “especially when it comes to food and beverage as well as shopping,” Kepnes said.

For example, last year, if a traveler bought a scarf for 10 euros, that scarf would cost them about $12. Right now, however, that scarf would cost about $10.

Kepnes expects the strength of the dollar “will create more interest in Europe,” but that there won’t be a “surge” in travel to Europe immediately. He said “more fall trips to Europe” are likely as people plan ahead.

Future travelers can still take advantage of the low exchange rate by booking in advance and paying now, CNBC reported.

So where to go?

Kepnes’ top advice? “Avoid the major tourist places.” These locations get crowded in the summer months, he said.

Instead, Kepnes recommended visiting places “off the beaten path.” These locations, he said, tend to be less expensive to begin with, allowing travelers to get an even better deal on top of the strong U.S. dollar.

The euro is the official currency of 19 countries, an area known as the eurozone, according to the European Union.

The eurozone includes: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain.

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