jpdx

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.

iahphx

Right. And, suddenly, Airbus planes are theoretically a lot cheaper for USA airlines to buy. As Tchiowa points out, though, while this is big money, these are long term deals and the impact will take years to play out.

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.

Honestly, Bali has been very cheap for ALL "Western" travelers for a couple years now. I went about 15 months ago, and it was among the cheapest places I've ever travelled. I remember my wife and I thinking: "Jeez, if it's this cheap for us, it must be almost free for Europeans." I guess now we get to experience that windfall now, too.

Your list is interesting. The HKG situation is exactly what I described, as the HKD has been pegged to the USD for as long as I can remember. Because of this fact, I haven't travelled there in years: China, paying in Yuan, has been SO much cheaper, that it didn't make much sense to visit HKG (you go to Shanghai instead). But I'm actually headed to HKG next month; I'll be curious to see just how expensive tourist-related things are.

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.

RustyC

Good 4 u. Indonesia has always seemed very affordable. Just happened to be there years ago when the rupiah suddenly fell from the 3,500 range to the 10,000 range in a very short time period. Very chaotic...you couldn't change cash near the official rate, and ATMs would top out under $100 a withdrawal because the limits hadn't been reset. Stores were repricing things right and left but it was possible in some cases to get some real bargains. My hotel even waited to put the charge for the room through...but the rupiah fell even more. Thankfully it has been more stable since.

RustyC

As long as China favors exports by depressing the yuan's value, other developing countries in the region will behave similarly. The big fear is China underpricing their exports and taking over the sectors, as it has the size and idle labor to do it in a number of cases. Though lately the bottomest of bottom-feeders (companies that relocate when wages top 50 cents an hour) seem to favor Bangladesh and India.

Reindeerflame

As I don't pay for airfare anymore, thanks to FT, the rise in the dollar's value only has an upside for me.

Tchiowa

FT is paying for your tickets? Do tell.

GUWonder

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.

NA-Flyer

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.

travelmad478

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!

GUWonder

Gas prices in EUR have risen due to the rising USD relative to the EUR, and that makes some things more expensive in EUR than they would have otherwise been.

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.

spd476

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.

kingarthur

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]

bhrubin

Prices in SA are amazing with the US$-ZAR exchange rate. We were just there in Jan, and it was 1:12. When we were there in 2010, it was 1:7. I recommend some fine dining at the best restaurants, since it will be CHEAP, CHEAP, CHEAP!

iahphx

This is an extraordinary benefit to savvy, traveling Americans (aka, "flyertalkers"). Honestly, it used to be that the airlines subsidized our travels, but now the credit card companies do. I have no idea how long this will last but, for the moment, the good times keep rolling.

Southern Africa is an extraordinary bargain for Americans, and it's still quite cheap for Europeans, too. Personally, I think it's the best value place in the world to vacation right now. But people don't take many trips down there due to their ignorance of Africa.

iahphx

I took my family for a vacation in Rome a few years ago when the Euro was above $1.50. I think I was a little bitter about it the whole trip. Here I was in a country where the standard of living was obviously a little lower than in the USA, but it was me who felt "impoverished." I remember all we could "afford" to eat was pizza: even the cost of a simple pasta dish seemed outrageous.

It will definitely be more fun in Rome now for Americans.