There have been no shortage of articles about the great deals US travelers can get on trips overseas right now – and for good reason. After quite a few years of a relatively weak US dollar, the currency’s value has been quite strong recently in comparison to counterparts like the Euro, the Russian Ruble, the Australian Dollar, the Brazillian Real and others.
According to the Washington Post, the cost of hotels around the world for US travelers overseas have seen relative decreases ranging from 12% (Morocco) to as high as 45% (in Russia). In addition to the strong dollar, economic slowdowns in Europe and elsewhere have resulted in additional decreases in the relative cost of local goods, services, food and entertainment. This is great news for US travelers who are planning travel outside of the US in the near future – but will they take advantage of it?
Economics expert Evan Soltas found no clear evidence that US citizens travel more outside of the US when the dollar is stronger. What his research did show was that international travelers decrease their travel to the United States by as much as .5% for every 1% increase in the value of the dollar. It will be interesting to watch whether or not this has any noticeable effect on US tourism numbers or on hotel demand levels in the US.
How long will it last? Will the great travel prices for US travelers overseas and the conversely not-so-great costs for foreign travelers continue? While there’s no economic crystal ball, Bloomberg reports that at least some economists and investors point to indicators that show continued strength for the dollar.
Has your company changed its outlook for global travel based on the current strength of the dollar? We would love to hear from you. Let us know in the comments or on Twitter @TandTNews.
Looking for vacation ideas? Check out our list of the top 5 destinations to visit while the US dollar is strong.