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The US dollar has not been this strong in Europe in two decades.
Earlier this month, the euro hit parity with the dollar. It had fallen to its lowest level since 2002 and at times dipped below one-to-one against the US dollar.
Travel experts have mixed opinions on whether it’s a good time for tourists to visit European countries that use the euro as their currency. Some encourage tourists to take advantage of this opportunity, while others advise against this opportunity and recommend waiting until the fall, when demand decreases and disruptions at airports are reduced.
Lee Thompson, founder of group adventure travel company Flash Pack, told FOX Business that 2023 is the best time to travel because prices for tourists could increase significantly due to fuel costs, taxes and exchange rates.
Summer travel prices have increased due to increased demand for flights and hotels.
“The dollar is very strong right now against the euro and the British pound and it may never get this cheap again,” Thompson told FOX Business. “2023 is set to be the most expensive time to travel with hotel prices increasing dramatically, so now is the perfect time to travel.”
Travelers line up at security at London Heathrow Airport on June 22, 2022. (AP/Frank Augstein/Associated Press)
The dollar is rising mainly as the Federal Reserve raises interest rates sharply, while central banks elsewhere are raising more than they are trying to cool US inflation, the hottest in four decades.
Clint Henderson, managing editor of travel website The Points Guy, argued that even though hotels and restaurants have become more affordable due to the changing pace, demand is still driving up prices.
Henderson told FOX Business: “The problem is that demand for Europe is very high right now, prices are exceptionally high, higher than they were before the pandemic.”
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Any “gains from exchange rate parity” are being lost because prices are generally higher due to pent-up demand, Henderson says.
These high prices are one of the few reasons why travelers should avoid going to Europe until the fall.
Passengers queue for British Airways check-in desks in the departures area of Terminal 5 at Heathrow Airport in London. (Reuters/John Sibley/File Photo/Reuters)
“Staff levels everywhere, including hotels and airports, are not what they should be,” Henderson said, adding that he has heard “story after story” about travel meltdowns across Europe.
Some airports, such as Gatwick and Heathrow in London and Amsterdam’s Schiphol Airport, have called on airlines to limit flight numbers as they grapple with staffing problems and continued service disruptions.
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North American Airlines has also appealed to Ireland’s transport chief for urgent action to tackle “extreme delays” at Dublin Airport.
If you want to travel immediately, places like the Caribbean, Colombia or Turkey are your best bet because demand is lower and the dollar is stronger against those currencies, Henderson said.
Fox News’ Greg Norman and The Associated Press contributed to this report.
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