keisari

In the last 2 years flight prices to EZE have nearly doubled.
I am having second thoughts about coming again this spring. I was planning on a 3 week trip in November and hoping to visit El Calafate and maybe Iguazu or a side trip to Montevideo.
The flights from BAires to El Calafate or to Bariloche are up to 500-600 US$. ouch !! Last year I paid $300 to Bariloche.
Prices in Argentina have also increased from what I understand and read in the press, to the tune of 30% or so in the last year, depending on who you believe.

Is Argentina pricing itself out of the traveler's market?
Don't get me wrong, I adore Argentina and especially BAires but with such high cost of travel and stay, I may be looking at other destinations.

Any thoughts?

samftla

There is the South American Air Pass that LAN offers but you would need to add one more city to your plans, just checked and you could fly Bariloche, Calafate and Cordoba for under $600 US for all three. But you have to fly LAN to Argentina in order to get that price. Aerolineas has a similar pass, but charge more if you fly into Argentina on another carrier. You could check their web site for details. And yes, prices have risen substantially regardless of the central governments claim otherwise. Even with the price increases it is still very much an affordable destination. If you think it is expensive in BA try France, England, Italy or even Brazil. The value of the US dollar has so eroded there are not many places left where it is not painfully expensive. As far as pricing itself out of the market, just look at the airlines load factors, all seem to flying pretty full even though it is winter.

Sam

GUWonder

Taking the example of India as an even more extreme example of travel price changes in USD terms, it seems that high prices (because of demand dyanmics and supply-side constraints) don't necessarily have to lead to near-term additional weakness in an otherwise strong tourism sector.

If it is airfare prices primarily that are off-putting, I would suggest looking at using miles for a frequent flyer award ticket or go for the pass kind of option mentioned above.

VPescado

You might also look into taking buses. The 1st and 2nd class seats on buses are supposed to be very comfortable and offer very good service for a relatively low price. While probably not practical for El Calafate, you could do Iguazu or Bariloche in first class (lie flat seat) for about USD 60-70.

There is also the high speed ferry if you want a less expensive trip to Montevideo.

SFO-SSA

Are you not following the news? Air fares are rising everywhere thanks to high jet fuel prices. Then add the weak dollar and international travel is becoming very expensive for Americans. I split my year between the U.S. and Brazil, but I'm going to have to make some big changes if the dollar doesn't end its free-fall. Eight years of bad government are putting an end to the era of cheap and frequent travel.

HIDDY

It still is a good value destination especially for Europeans but certainly not as cheap as it was.You have enjoyed the benefits over the last few years and now you are seeing the difference and to be honest I can't see it getting any better. Make the most of it for the time being before it really does get too expensive for you.

You should try living here if you think the tourists are having it bad.

Eastbay1K

Well, airfare is always going to be a big issue now, no matter where you go. And apparently the government sets the domestic fares in Argentina, which have just had a couple of sizeable fare increases. Also, hotel space (at least in Buenos Aires) seems to be in short supply, and rates have gone up substantially in the past couple of years. Fortunately, for tourists, food is still affordable. It isn't "dirt cheap" anymore, but it is still reasonable for the time being (although the US$ has lost a little bit of ground there over the past couple of weeks). Unfortunately, the current inflationary cycle, which doesn't seem to have any end, is not pretty at all, and bears no rational relation to the official statistics (sound familiar? Magnify it by several times).

Its ok, one day soon, the Presidenta is going to go to some balcony and sing for us and everything is going to be super

Eastbay1K

One more thought. My first 3 trips to Argentina were prior to the currency crash, when hotel prices were similar to what one would pay in NYC, and food, while not expensive, wasn't a bargain. And you know, it was a very popular place to go at those prices. So while it may be pricing itself out of the "OMG This is SO cheap I can't believe it" market, it won't be pricing itself out of the general traveler's market, ever.

etch5895

I've only been done there once, but I can see a few things that would make it a more expensive destination than might be expected in, say, Europe.

First off, most of the flights from the US arrive in the morning, and then the airplane sits there all day idle until the afternoon flight back north (at least this is the case at EZE). Most transatlantic flights involve quick turnaround times with only a few hours on the ground. Another factor is the lack of competition on these routes. Flying to Europe or Asia, you have multiple carriers / destinations within a fairly close train or car ride from each other. Not so in South America. Then, lets not forget that this is at least a 9-10 hour flight each way.

I think that the hotels are simply charging what the market will bear. Food was in my estimation, much cheaper than what I would have paid in Europe or the US.

BillScann

The plummeting value of the US dollar, combined with Argentine inflation, is the cause of your pain. The current Argentine government is responsible for many things, but the transformation of the once-mighty American Dollar into the anaemic Bush Peso is not one of them.

The cost of living in BsAs jumped 30-35% between November 2006 and November 2007, while the USD-ARS exchange remained stable due to Argentina's policy of tying the peso to the dollar. This isn't just a random statistic, but a painful reality I personally felt.

Alex, if we were to spend a month or two in BsAs this coming November/December, should we expect things to be 30% more expensive than they were six months ago?

D1andonlyDman

One thing that I have observed is that in Buenos Aires, the relative price difference for hotel rooms vs. apartment rentals is greater than anywhere else I've traveled. In BA, 2 nights in a hotel room costs as much as a week's rental in a nice 1 BR apartment in the same location. Most places that I've traveled 4-5 nights in a hotel could be gotten for the cost of a week's rental of a 1 BR apartment.

In BA, a nice, but not too deluxe, hotel room costs close to $200, and a basic double room at a top notch luxury hotel costs twice that amount - while nice 1 BR apartments can easily be found for $350-400/week.

I can only explain this by an apparent shortage of hotels, coinciding with a big surplus of rental properties in the city.

Lovecraft

Well, it is not a big surplus of rental properties in the city, but many landlords prefer to rent to tourist on a short-term basis, it's more money and less of a hassle.

Back to the topic, I heard from some friends in Argentina that many restaurants and shops in the Recoleta area are closing, even the cinema there, once the flagship cinema complex in Buenos Aires, is closing half of their screens down.

HIDDY

We have an apartment in BsAs on Uruguay just off Santa Fe which we let out to a family friends student daughter. I'm sure we could get more from tourists but it's not a guaranteed monthly income. Pros and Cons I suppose.

BamaVol

I'm here in BsAs as I type. This is my first trip here so I cannot compare. But how is this unaffordable? I have yet to pay more than AR$250 (about $80US) for dinner for 3 with wine tax and tip? in a decent restaurant. Clothing appears very reasonable. A ride on the subte is AR$0.90! Our hotel is cheap compared to any large city (US$170 for a suite). If the only complaint is airfare, well, use miles. I'm about to drop in on Gaucho100K today. I'm sure he'd like to show me how easy it is to spend the pesos I've saved all week on the cheap dinners and hotel.

I did note that the peso gained some strength against the dollar just before we arrived, but after multiple trips to Europe over the last few years, this feels much better.

D1andonlyDman

Is that before, or after you include 21% tax? because that adds another $35 a night to your $170 rate. Apartment rentals don't pay that tax.