Has the Euro...
Dec 7th, 2003, 04:26 AM
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Has the Euro...
contributed and been a factor in the higher cost of travel in Europe? We've just returned from France and it's been the most expensive trip thus far. Is the Euro part of the reason or just a coincidence?
Dec 7th, 2003, 07:42 AM
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It is because the dollar has fallen in value against the Euro. Actually the Euro at the moment is exactly where it was pegged a number of years ago. The dollar became stronger in those intervening years before the Euro became the currency so we got used to a very favorable rate of exchange. France is STILL the bargain destination in my opinion.
Dec 7th, 2003, 07:53 AM
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Two issues: 1) the exchange rate between your currency and the euro and 2) the rate of inflation in countries in Europe; influence if Europe is more or less expensive today than before.
ad 1) The euro has become stronger vs. most currencies during the last year and a half or so, so people from most countries will have to pay more for a euro than 1 1/2 years ago. (but in 1996 the euro (well, its predecessors) was even more expensive vs. many currencies including the US$.
ad 2) Inflation in countries of the euro-zone has been relatively low (around 2%), BUT inflation for things that tourists buy most (bars, restaurants, hotels) has been much higher than that.
ad 1) The euro has become stronger vs. most currencies during the last year and a half or so, so people from most countries will have to pay more for a euro than 1 1/2 years ago. (but in 1996 the euro (well, its predecessors) was even more expensive vs. many currencies including the US$.
ad 2) Inflation in countries of the euro-zone has been relatively low (around 2%), BUT inflation for things that tourists buy most (bars, restaurants, hotels) has been much higher than that.
Dec 7th, 2003, 10:22 AM
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lucky03 enjoys posting questions that provoke various outrageous responses.
Why aren't Europeans obese? Is France a crime-ridden heck-on-earth? is it Europe's fault the US economy is in the tank?
We enjoyed her time away.
Why aren't Europeans obese? Is France a crime-ridden heck-on-earth? is it Europe's fault the US economy is in the tank?
We enjoyed her time away.
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Dec 8th, 2003, 08:48 AM
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I think that nytraveler did re-state the question correctly - - and Sjoerd provided an answer (in his "second" number "2"
that has been discussed a fair amount here on this forum: that when hotels and restaurants and museums changed their fees from their country's (old) native currency to the euro - - they rounded UP, sometimes way up; perhaps some of them had not had price increases in quite a while.
So, it may indeed be true that this was the most expensive trip ever for lucky03 - - and the current exchange rate euro
ollar just made it seem even more exaggerated.
Best wishes,
Rex
that has been discussed a fair amount here on this forum: that when hotels and restaurants and museums changed their fees from their country's (old) native currency to the euro - - they rounded UP, sometimes way up; perhaps some of them had not had price increases in quite a while.So, it may indeed be true that this was the most expensive trip ever for lucky03 - - and the current exchange rate euro
ollar just made it seem even more exaggerated.Best wishes,
Rex
Dec 8th, 2003, 09:32 AM
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As I recall, the original question was whether or not the Euro has "been a factor in the higher cost of travel in Europe?" Duuuuuuuuh....since only a few countries in Western Europe don't use the Euro and since ist value has risen against the dollar I cannot imagine it taking a lot of "analysis" to figure out the answer is, "Yes."
Like asking, "Is the sky blue or does it just look that color?"
Like asking, "Is the sky blue or does it just look that color?"
Dec 8th, 2003, 09:45 AM
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Rex is correct in that several countries which used to be 'cheaper destinations' raised prices to be more in line w/some more expensive countires that are tied into the Euro as a currency. In addition, the dollar has continued to tank in value for the past year.
Dec 8th, 2003, 03:51 PM
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I do not think it is ...
Like asking, "Is the sky blue or does it just look that color?"
It's more like asking "does the bottom of the pool seem bluer?" now that it is painted all one color - - as opposed to pre-2002, when 11 different countries came up with their own version of blue paint.
Separate from the issue of the euroollar currency rate, in a time when hotels in Europe semed cheap, some seemed cheaper than others. And the homogenization to the euro provided an opportunity for those that were a little cheaper to come a little more in line with similar hotels in other countries.
Like asking, "Is the sky blue or does it just look that color?"
It's more like asking "does the bottom of the pool seem bluer?" now that it is painted all one color - - as opposed to pre-2002, when 11 different countries came up with their own version of blue paint.
Separate from the issue of the euro
ollar currency rate, in a time when hotels in Europe semed cheap, some seemed cheaper than others. And the homogenization to the euro provided an opportunity for those that were a little cheaper to come a little more in line with similar hotels in other countries.
Dec 8th, 2003, 04:14 PM
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While other factors may contribute to the added cost of a trip to Europe, the basic fact remains that the key reason was lucky03's trip was more expensive this time was because the dollar was worth less when exchanged for euro.
Dec 8th, 2003, 04:45 PM
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hi all,
I agree with Rex et all.
Immediately following the change over to the Euro, one of my favorite hotels finally updated their website to reflect their new prices in Euros vs francs. The price change was not equitable (ie francs vs euros), in fact the increase was about 25%. At that time the room went for about 550 francs, around $85(?). When they switched over to the Euro, which was almost an even trade per dollar, the price went to 102 Euros. This was roughly $102 per night.
So, I agree, the switch to Euros initially gave merchants a chance to bring up their prices some and they did take advantage of that.
Over the course of the last year, the dollar has steadily lost ground with the Euro and especially with the british pd.
As a result, travel to certain european countries that used to be relatively inexpensive vs say the british pd, are no as inexpensive.
however, travel to france is still cheaper than the travel to great britain. right now it costs $1.72 per pd.
I agree with Rex et all.
Immediately following the change over to the Euro, one of my favorite hotels finally updated their website to reflect their new prices in Euros vs francs. The price change was not equitable (ie francs vs euros), in fact the increase was about 25%. At that time the room went for about 550 francs, around $85(?). When they switched over to the Euro, which was almost an even trade per dollar, the price went to 102 Euros. This was roughly $102 per night.
So, I agree, the switch to Euros initially gave merchants a chance to bring up their prices some and they did take advantage of that.
Over the course of the last year, the dollar has steadily lost ground with the Euro and especially with the british pd.
As a result, travel to certain european countries that used to be relatively inexpensive vs say the british pd, are no as inexpensive.
however, travel to france is still cheaper than the travel to great britain. right now it costs $1.72 per pd.
