exchange rate and travel/cruising

[meow!]

If we take a look back at barely half a dozen years ago, when the US$ was at its might and compare it to now, the following will show up:

 

The euro increased from 84 cents to $1.45, an increase of 73%

The GBP increased from $1.36 to $2.09, an increase of 54%

The C$ increased from 63 cents to $1.07, an increase of 70%

The A$ increased from 48 cents to 92 cents, an increase of 92%

 

Can the economists on this board tell us

why did it happen

how is it going to affect us, especially travellers/cruisers

when will this decline end and start reversing upwards

what can anyone do about it

where are the locations less affected by this change

who is responsible for this decline?

[dwelsh]

My wife warns me never to engage in discussions of religion or politics with strangers. For the sake of peace on this board let's not start placing blame on whoever you feel is responsible for the present economic situation in the world.

[orchestrapal]

Jut remember when you cruise you pay in advance in good old worthless dollars. Unless you're a shopper your use of foreign currency should be minimal.:)

[Jancruz]

dwelsch..hooray for your wife!!

Jan

cruzunlomited

[Aussie Gal]

I can only say I am thrilled that our dollar has gone up against the U.S. as it has made our cruises so much cheaper. Back in the late 70's before our dollar was put into freefall, we used to get $1.20 against the U.S. and then in the mid eighties it all changed. We have watched it go up and down over the years and I am thrilled to say it has now reached a 24 year high (for us).

 

I am hoping it will stay this way for at least another year.

 

We have been travelling every year to Europe since 1994 so we know what it is like to have a weak dollar. You have two choices, either you can go overseas where you will not get a lot for your hard earned money or stay at home and get value for money. We are lucky that we can do both, as we always spend time visiting various parts of Australia during the year as well as being able to visit overseas.

Jennie

[lahore]

Yes, sorry you guys. We actually have USA American friends staying with us right now, whom we met on a cruise and they are bemoaning the fate of the USD, and I certainly empathise. We Aussies have been the other way around for years now - when we bought a USA based cruise we immediately paid nearly double. Now we are very happy, it's bad for you guys but I can't say I am sorry for us :D. Swings and roundabouts....

[lahore]

Oh, and Asia is still good value, but I guess it is expensive for you to get there.

[LHT28]

I guess other Countries that have had to pay more to book in USD in the past are very happy with the turn around.

I can remember as a teen going across the border & getting 10cents on our dollar ...WOO HOO

Happy days are here again!!!:D

[china addict]

Where can we go to get the most bang for our buck? Is there ANY safe place where the exchange rate works in our favor? Loved the times when Australia and NZ were bargains. Can only afford Europe these days on a cruise such as O where price is fixed in advance in USD. Friends tell me even Mexico isn't the bargain it used to be. Where are savvy US travelers spending their future vacation dollars to receive maximum value?

[dwelsh]

Looking at tours in Brazil, Uruguay and Argentina, that is the only way I can measure value for the $, they look pretty good for our forthcoming cruise

 

Europe, as we learned in May/June of this year when the GBP and the Euro were at lesser value than now, the prices were horrendous. I reckon that until things change (and they will) we will have to stay this side of the 2 "ponds" that surround us.

[Wendy The Wanderer]

I must apologize too, but with the C$ how riding high, I'm in travel heaven, after paying through the nose for years. Unfortunately our tourist industry here is none too happy, since American tourism to Canada is way down.

 

As for "how it will affect you", gee, it means that travel costs more, bottom line. And it perhaps means that fewer Americans will travel abroad.

 

As for "who", I won't go there, too political.

[phillipahain]

The first time we went on holiday to USA in 1980 it was $2.50 to 1 GBP

 

since then its plummeted to $1.40 to 1GBP at one point and bounced up and down around $1.70/$1.80

 

Sure love the current $2.09 to 1GBP though

[Wendy The Wanderer]

Philip, my first trip to England was in 1970. I can't remember the precise value, but I think it was about US$.60 to the pound. In those days the Canadian dollar was a bit below the USD I think, but not hugely.

 

And you could get a fair B&B outside of the big cities for a pound per person! Europe on $5 a day was a reality for me.

[dwelsh]

When we came to the US in 1960 the £ was $2.80. Everything was so much less expensive in the US than in the UK.

 

In 1984/85 the £ was worth $1. We remember shopping at the winter sales in London in January 1985 and had to buy extra suitcases to bring the “loot” home.

 

Then in the mid 90’s when the £ was up to $2.30 it was devalued overnight and the hotel rate in which we were staying, in $’s went from $230 a night to $175

 

Now, with inflation and the UK currency at $2.10 + exchange rate fees we find the cost of everything from food to transportation impossible to handle.

[CathyCruises]

My daughter is in Thailand right now and it is super cheap. She sent a picture of a thatched roof bungalow she was staying in for $14/night and it looked beautiful. She says most meals (at local places) cost about $1.00. Of course she did describe one luscious dish of skewered beetles cooked in coconut milk!

 

We found everything to be outrageously expensive last week in Europe--except the wine, which was cheaper than the water. We averaged $60 a day for lunches off the ship--and just in sidewalk cafes, nothing fancy. At one cafe in Rome we had lunch, then ordered coffee--5 Euro per cup, or $15.00 for the two! I saw some average-looking jeans in a store window in Corsica for 345Euro--over $500!! As a consequence we bought almost nothing other than food, gas, and tolls--also incredibly expensive, at $20+ each time we passed through the pay booths! Still had a great time!

 

Cathy

[meow!]

That is why many European visitors to this U.S.A. buy large suitcases and fill them with cheap American goods before returning home. That is the new reality nowadays. As for the fried beetles in Thailand, we will pass whatever the price! There are lots of much more edible Thai dishes though, as anyone who has gone to a local Thai restaruant will know!

[Soccerfan]

My daughter is in Thailand right now and it is super cheap. She sent a picture of a thatched roof bungalow she was staying in for $14/night and it looked beautiful. She says most meals (at local places) cost about $1.00. Of course she did describe one luscious dish of skewered beetles cooked in coconut milk!

 

We found everything to be outrageously expensive last week in Europe--except the wine, which was cheaper than the water. We averaged $60 a day for lunches off the ship--and just in sidewalk cafes, nothing fancy. At one cafe in Rome we had lunch, then ordered coffee--5 Euro per cup, or $15.00 for the two! I saw some average-looking jeans in a store window in Corsica for 345Euro--over $500!! As a consequence we bought almost nothing other than food, gas, and tolls--also incredibly expensive, at $20+ each time we passed through the pay booths! Still had a great time!

 

Cathy

 

 

Cruising in Europe is still a great bargain though...

 

We would never have been able to afford to see all that we have seen if we had tried to do this by a land trip.

 

I am originally from England, now living in Toronto. I used to go home many years ago and go crazy shopping to bring back to Canada. Now I don't buy hardly anything as the cost is so high. (Only bring back some favourite stuff like Galaxy chocolate and the original Cadbury's chocolate and wine gums)

 

On our last trip to Italy, we had relatives take us to their local grocery store before we got on the ship. We bought all of the wine for our group of 10 at ridiculiously low prices. It was about the same cost as water in the grocery store.

 

Now that's my kind of Country!:D

[Jancruz]

Where can we go to get the most bang for our buck? Is there ANY safe place where the exchange rate works in our favor? Loved the times when Australia and NZ were bargains. Can only afford Europe these days on a cruise such as O where price is fixed in advance in USD. Friends tell me even Mexico isn't the bargain it used to be. Where are savvy US travelers spending their future vacation dollars to receive maximum value?

 

We love Asia, Viet Nam, Thailand still great bargains..

Jan

*****