The financial news for travelers -- or just about anyone else -- has been less than favorable the past year or two.
Fuel prices are high. Airfares are volatile, and new fees from the airlines appear frequently. Until recently, the plunging U.S. Dollar has created currency exchange stress for American travelers.
Amid all this gloom, many might not have noticed their Dollar (USD) has made a dramatic rebound against some other major world currencies.
Currency exchange strategy can be a big money-saver. But it always helps to start with some favorable rates.
Consider the difference a year makes for holders of the U.S. Dollar:
On October 29, 2007, one British Pound was worth $2.04 USD.
On October 29, 2008, one British Pound was worth $1.60 USD.
Think of this in practical terms. A hotel room that cost £128 on that date in 2007 was $261 USD. One year later: $205. Now there is $56 towards the cost of a nice dinner, or perhaps a few picnic lunches.
Gains against the Euro have been less dramatic, but are also noteworthy:
On October 29, 2007, one Euro was worth $1.44 USD.
On October 29, 2008, one Euro was worth $1.27 USD.
Suddenly, that two-night stay in the €90 room at a Berlin budget hotel is no longer $260 USD; it fell to $228. That $32 is almost enough to pick up a pair of two-day City Tour Cards good for travel on all urban trains.
See how these currency exchanges can enrich a travel budget?
The gains for the U.S. Dollar aren't limited to Europe. Let's look at America's two closest neighbors, Canada and Mexico:
On October 29, 2007, one Canadian Dollar was worth $1.04 USD.
On October 29, 2008, one Canadian Dollar was worth $0.79 USD.
Think of the added value during a visit to Toronto.
On October 29, 2007, one U.S. Dollar bought 10.71 Mexican Pesos.
On October 29, 2007, one U.S. Dollar bought 13.01 Mexican Pesos.
Look at the added spending power in Mexico City.
Headed to Rio de Janeiro? From October to October, the U.S. Dollar is up about 23 percent against Brazilian Real; Asia? During that time, the U.S. Dollar gained about 18 percent on the Japanese Yen.
One of the biggest gains for Dollar holders involves the Iceland Krona.
In October 2007, a traveler would receive about 61 Krona for a U.S. Dollar. In October 2008, that nearly doubled to 120 Krona per USD.
It's not possible to list all of the gains and losses, and it probably isn't necessary. It's clear exchange rates have changed dramatically for some currencies in a relatively short period of time.
Not an American? These exchange rates could still impact your travel budget. British and European Union citizens who came to the U.S. last year to do their holiday shopping might be less inclined to do so in 2008. That affects a lot of folks on both sides of the Atlantic.
Anyone who follows financial news and the markets knows these are turbulent times, and rates change quickly. As you check out the exchange rates at a site such as xe.com, you'll notice changes from the above examples. The point is to check frequently and perhaps pick a destination where the exchange rate for your currency is improving.
Don't let that be the only factor in your travel decision. But start working on combining exchange benefits with budget airfares and low-cost lodging, and you might find that international travel is more affordable than you imagine.
