US dollar's remarkable gains will impact int'l travel
#16
Moderator: Mileage Run, InterContinental Hotels
Join Date: May 2004
Posts: 5,916
FYI, here's how the EUR was trading in mid-August 2014 vs today:
HKD 10.4 vs 8.2
CNY 8.23 vs 6.6
THB 42.5 vs 34.5
TWD 40.5 vs 33.5
IDR 15.5K vs 13.9K
SGD 1.65 vs 1.45
KRW 1350 vs 1200
JPY 138 vs 128
MYR 4.20 vs 3.90
So not quite "business as usual" for many of those countries.
HKD 10.4 vs 8.2
CNY 8.23 vs 6.6
THB 42.5 vs 34.5
TWD 40.5 vs 33.5
IDR 15.5K vs 13.9K
SGD 1.65 vs 1.45
KRW 1350 vs 1200
JPY 138 vs 128
MYR 4.20 vs 3.90
So not quite "business as usual" for many of those countries.
#17
FlyerTalk Evangelist
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Join Date: Mar 2000
Posts: 17,421
While this momentous shift could hurt the USA economy, there are a few benefits (other than the windfall to USA-based flyertalkers). Like imports are suddenly cheaper in the USA, theoretically raising our living standards.
We were in Bali in 2012. 9,900 IDR to the USD. Today? 13,150. We are going back to Bali in May and just booked a 4* spa in Ubud for three hours. Cost? $24 USD. Boom. I flew to Jakarta last week (as part of my AA Executive Platinum Challenge). Had lunch in the high end mall. $3.77. It has been almost 13 years since we've seen the USD strong overseas. I for one am THRILLED.
How are US travelers going to react? Well, I'm going to Bali in May, just booked Singapore (for the Formula 1 GP) in September, and hitting up U2 in London/Germany in October. ^
How are US travelers going to react? Well, I'm going to Bali in May, just booked Singapore (for the Formula 1 GP) in September, and hitting up U2 in London/Germany in October. ^
FYI, here's how the EUR was trading in mid-August 2014 vs today:
HKD 10.4 vs 8.2
CNY 8.23 vs 6.6
THB 42.5 vs 34.5
TWD 40.5 vs 33.5
IDR 15.5K vs 13.9K
SGD 1.65 vs 1.45
KRW 1350 vs 1200
JPY 138 vs 128
MYR 4.20 vs 3.90
So not quite "business as usual" for many of those countries.
HKD 10.4 vs 8.2
CNY 8.23 vs 6.6
THB 42.5 vs 34.5
TWD 40.5 vs 33.5
IDR 15.5K vs 13.9K
SGD 1.65 vs 1.45
KRW 1350 vs 1200
JPY 138 vs 128
MYR 4.20 vs 3.90
So not quite "business as usual" for many of those countries.
I did forget to mention China, which is another big negative for Europeans. It's not like China has suddenly gotten much cheaper for Americans; the problem for Europeans is that the Yuan has stayed stable with the dollar, and therefore pummeled the Euro. China won't be expensive for Europeans now but, if I was European, I wouldn't rush to visit. There are still many, many places in the world where Europeans can travel and live like kings. The situation is FAR better for them now that it's been the past 12 years for Americans.
#18
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We were in Bali in 2012. 9,900 IDR to the USD. Today? 13,150. We are going back to Bali in May and just booked a 4* spa in Ubud for three hours. Cost? $24 USD. Boom. I flew to Jakarta last week (as part of my AA Executive Platinum Challenge). Had lunch in the high end mall. $3.77. It has been almost 13 years since we've seen the USD strong overseas. I for one am THRILLED.
#19
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I did forget to mention China, which is another big negative for Europeans. It's not like China has suddenly gotten much cheaper for Americans; the problem for Europeans is that the Yuan has stayed stable with the dollar, and therefore pummeled the Euro. China won't be expensive for Europeans now but, if I was European, I wouldn't rush to visit. There are still many, many places in the world where Europeans can travel and live like kings. The situation is FAR better for them now that it's been the past 12 years for Americans.
#21
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#22
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Thanks to FT, some people fly with the tickets paid for by banks or banks' affiliate partners.
Manufacture spend on credit cards has allowed some people to fly a significant amount with tickets paid for by the card-issuing bank and/or bank affiliate partner.
Manufacture spend on credit cards has allowed some people to fly a significant amount with tickets paid for by the card-issuing bank and/or bank affiliate partner.
#23
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Prices for everything in Europe are going crazy and since the euro depreciation I noticed that hotel rates are on the rise side in Europe. So the advantage of currency depreciation are evaporating fast.
#24
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I for one am cheering the weak EUR, which has dragged the ZAR down with it. Yesterday, I paid the 80% remaining balance for a month-long safari I'll be taking in May through SA and Namibia, priced in ZAR. The initial 20% was charged in early December, when the rate was 10.72/USD. Yesterday it was 12.34/USD
I recall going to SA in December 2001 and feeling like a millionaire because the ZAR had just crossed the 13/USD mark--people there were freaking out at the currency's nosedive at that time. Of course, local inflation since then means that my USD will not go nearly as far today as it did then, but still, I think I am going to do a lot of art shopping on this trip!
I recall going to SA in December 2001 and feeling like a millionaire because the ZAR had just crossed the 13/USD mark--people there were freaking out at the currency's nosedive at that time. Of course, local inflation since then means that my USD will not go nearly as far today as it did then, but still, I think I am going to do a lot of art shopping on this trip!
#25
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I think vacationing in USA will still be cheaper and more affordable than spending a vacation in Europe even when the $ is on par with the euro.
Prices for everything in Europe are going crazy and since the euro depreciation I noticed that hotel rates are on the rise side in Europe. So the advantage of currency depreciation are evaporating fast.
Prices for everything in Europe are going crazy and since the euro depreciation I noticed that hotel rates are on the rise side in Europe. So the advantage of currency depreciation are evaporating fast.
Also, the impact of currency rate changes on hotel rates seem to have a rather complicated, non-straightline dynamic in relation to forex rate shifts.
#26
Join Date: Jun 2009
Posts: 616
My wife and I booked flights to Paris for later this year. The strength of the dollar played a part in that. I'm looking forward to the dollar being close to even with the Euro. When we went to Rome in 09, it was $1.50 to 1 Euro. Hopefully the exchange rate will stay close to even the rest of the year. It appears that it will.
#27
Join Date: Oct 2011
Location: Texas
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Posts: 279
Lot's good thoughts here. Japan is in a sweet spot as well-- the yen has been shredded, but prices have barely budged (i.e. minimal inflation). Australia is at a similar discount as Euro countries. And the crash in oil is creating some awesome fares - what a great time to go international for vacation!
One thing to keep an eye on... the financial industry is sharply split on whether or not the Fed will join the "currency wars" -- being sidelined has been the catalyst for the dollar rally. [speculation] I tend to think they will, but with all our trading partners easing too, and knowing that Forex trends are typically long in duration, the Fed will be fighting an uphill battle to devalue. I think it's more likely than not that this phenomenon is here to stay for a while. [/speculation]
One thing to keep an eye on... the financial industry is sharply split on whether or not the Fed will join the "currency wars" -- being sidelined has been the catalyst for the dollar rally. [speculation] I tend to think they will, but with all our trading partners easing too, and knowing that Forex trends are typically long in duration, the Fed will be fighting an uphill battle to devalue. I think it's more likely than not that this phenomenon is here to stay for a while. [/speculation]
#28
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I for one am cheering the weak EUR, which has dragged the ZAR down with it. Yesterday, I paid the 80% remaining balance for a month-long safari I'll be taking in May through SA and Namibia, priced in ZAR. The initial 20% was charged in early December, when the rate was 10.72/USD. Yesterday it was 12.34/USD
I recall going to SA in December 2001 and feeling like a millionaire because the ZAR had just crossed the 13/USD mark--people there were freaking out at the currency's nosedive at that time. Of course, local inflation since then means that my USD will not go nearly as far today as it did then, but still, I think I am going to do a lot of art shopping on this trip!
I recall going to SA in December 2001 and feeling like a millionaire because the ZAR had just crossed the 13/USD mark--people there were freaking out at the currency's nosedive at that time. Of course, local inflation since then means that my USD will not go nearly as far today as it did then, but still, I think I am going to do a lot of art shopping on this trip!
#29
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Join Date: Mar 2000
Posts: 17,421
I for one am cheering the weak EUR, which has dragged the ZAR down with it. Yesterday, I paid the 80% remaining balance for a month-long safari I'll be taking in May through SA and Namibia, priced in ZAR. The initial 20% was charged in early December, when the rate was 10.72/USD. Yesterday it was 12.34/USD
I recall going to SA in December 2001 and feeling like a millionaire because the ZAR had just crossed the 13/USD mark--people there were freaking out at the currency's nosedive at that time. Of course, local inflation since then means that my USD will not go nearly as far today as it did then, but still, I think I am going to do a lot of art shopping on this trip!
I recall going to SA in December 2001 and feeling like a millionaire because the ZAR had just crossed the 13/USD mark--people there were freaking out at the currency's nosedive at that time. Of course, local inflation since then means that my USD will not go nearly as far today as it did then, but still, I think I am going to do a lot of art shopping on this trip!
#30
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Original Poster
Join Date: Mar 2000
Posts: 17,421
My wife and I booked flights to Paris for later this year. The strength of the dollar played a part in that. I'm looking forward to the dollar being close to even with the Euro. When we went to Rome in 09, it was $1.50 to 1 Euro. Hopefully the exchange rate will stay close to even the rest of the year. It appears that it will.
It will definitely be more fun in Rome now for Americans.