Now is a great time to book your European vacation
London calling? Dreaming of Tuscany? It’s time to book your dream European vacation.
American travelers are set to save big money on trips across the pond following a sharp slide in European currencies.
The euro, which is used in Germany, France, Italy, Spain, Portugal and Belgium, among other countries, is now trading at $1.09, down from a $1.13 in February. As recently as two years ago, it cost nearly $1.40 to buy one euro.
The euro could drop further if the European Central Bank introduces more stimulus next week as expected.
The pound, meanwhile, has shed 4% against the dollar this year amid fears of a British exit from the European Union. The pound has slipped a total of 8% over the past year.
It’s likely to decline further as the June 23 referendum on British membership approaches. UBS says the pound could fall to as low as $1.36 before the vote, while Goldman Sachs has warned of an even sharper decline to $1.15.
That would make a London holiday much cheaper for American tourists. A Starbucks latte would cost $3.10 instead of the current $3.80, and two tickets to a West End musical would cost $126 instead of current $155.
Been there done that? Don’t worry, there are plenty of other holiday destinations that are getting cheaper for Americans.
A trip to Norway would be a relative bargain, as the Norwegian crown has fallen 10% against the dollar in the past 12 months. Poland’s zloty is down 6% over the same time period.
