As of today, the euro will cost you only $1.07. (For the latest rate, click here.) This is indeed great news for American budget travelers, as everyday charges that you’ll incur during your trip will be much, much less (in dollar terms) than they were just last year, when the euro hovered in the $1.30s for most of the year. And compared to the summer of 2008, when the euro hit $1.60, Europe is today a bargain for Americans.

How much will you save?

For most American travelers heading to Europe, the big savings will be the everyday charges that you encounter once you get to Europe. As the actual prices (in euros) aren’t changing, you probably won’t even notice all of these savings until you get home and examine your credit card receipts and see the conversion to dollars.

Indeed, your everyday travel expenses will be cheaper (in dollar terms) than they have been in more than 10 years. This chart illustrates my point:

Sure, the travel expenses need to be adjusted for inflation (perhaps that €65 dinner in 2008 would actually cost €75 today), but the point holds: expenses in dollar terms are much, much lower today.

Unfortunately, there isn’t much evidence that the stronger dollar is making airfare to Europe much cheaper on the big legacy carriers. Still, check out the new budget airlines flying between the US and European destinations, including Norwegian Air and Wow! Air (from $99). (Unfortunately, Ryanair backtracked yesterday on their plans to launch cheap US-to-Europe flights–sigh.)

How can you make your dollars work even harder for you? Here are 7 tips for making the most of this moment:

Pay when you book? Pay when you check in? Chill out! Photo: little-phoenix

1. Pay now or later? Don’t sweat it when booking.

So, with the dollar gaining strength by the day, shouldn’t you hold off on paying for your big on-the-ground payments (hotels, cars, etc.) until you get to Europe? Many of these offer you the chance to pay when you arrive or pick up the car, and if you’re traveling this summer, the dollar might very well be stronger then.

Or wait… Should you prepay for as many charges as possible now, to lock in these savings unless the euro gains against the dollar?

Well, that’s the billion-dollar question (and the basis of currency trading). If you can correctly predict this, you could make a fortune in the markets, as there are a lot of factors at play. Will the US raise interest rates? How will the Greek bailout affect the European economy? Analysts have all kinds of theories about this. It’s a good idea to follow the story and monitor the dollar-to-euro exchange rate.

However, keep the big picture in mind: The dollar is expected to remain very strong, and many are now predicting that “parity” (1 dollar = 1 euro) will probably happen within the next year. But it will likely slide up and down a few percentages in the meantime.

I’d suggest keeping an eye on the exchange rate, but then taking it easy. Don’t lose too much sleep over whether or not to pre-pay. At best, it will probably lead to only a savings of a percentage or two, and at worse it will cost you in terms of flexibility (as you might be locked into those purchases) and money lost on non-refundable cancelled reservations.

Buy those Greek ferry tickets directly from the ferry operator’s website in euros, not through a third-party reseller who might offer the sale in dollars. Photo: please

2. Buy tickets directly and pay in euros.

Booking ticket for transportation or attractions in advance? Be sure to book directly through the official sites and pay in euros, and not through a US agency that would probably be charging in US dollars (and making additional profits off of the strong dollar!).

Whether you’re booking Italian train tickets, Baltic ferry crossings, or “Sound of Music” dinner theater packages in Salzburg, go to the source when booking.

Note: If you’re booking rail tickets, please read tip #6 here before booking a rail pass. Buy tickets directly from the railway, not through an agent!

3. Plan your own vacation.

Related to this last point, the strong dollar makes this a great moment for American travelers to reap the benefits of planning their own trips. Buying a tour package can certainly take away some of the headaches of trip planning, but it’ll probably cost you. As many travel agencies set their tour package prices one or two years in advance, the chances are slim that they’re going to pass along the current savings from a strong dollar.

To make sure that you’re taking advantage of this exchange rate, plan your own trip!

When paying with a credit card, stick to euros! Photo: proimos

4. Once abroad, don’t let them convert to dollars at the register.

“Dynamic Currency Conversion” is probably my least favorite “currency” development in recent years. (Granted, it’s a short list.) It works like this: You head to the register to buy a new leather belt in Florence, hand over your credit card, and the cashier shows you an option on the keypad: Would you like to pay in euros or “see what you’ll be charged in dollars”? How thoughtful of them to convert to dollars for you, taking away the mystery of how much you’ll be charged!

Wrong. Stick to the local currency. This “dynamic currency conversion” is actually just a way for the local bank or card processing company to skim a bit more from the transaction. In this case, for example, they’re almost certainly converting the sales price of the belt into dollars at a much lousier rate than your credit card would be using, and then pocketing the difference.

But wait, it gets better: That probably isn’t the final amount you’ll pay, as your credit card will probably still charge you a foreign transaction fee on top of this. The “convenience” of seeing the amount in dollars is coming at the expense of getting a lousy exchange rate and still paying a transaction fee. Just say non!

Note: You might see this same offer at ATMs throughout Europe. I recently experienced this throughout Greece when using my debit card to withdraw cash. Stick to euros!

When abroad, use ATMs to get the best exchange rates. Photo: cloudyip

5. Get euros from ATMs and understand credit card charges.

This point is worth repeating, as many travelers still blow their budgets buying hundreds of euros before leaving for Europe, by paying for travelers checks, and by using expensive currency exchange counters once abroad.

To get money abroad, your best bet is to use your debit card to withdraw cash from bank machines connected to European banks (as opposed to shifty cash machines propped up outside a snack bar on the beach). You will almost certainly get the best exchange rates available to you, and, even though the bank will be making a bit of cash off of the transaction, you will undoubtedly be getting a better rate than you could get from home or from a currency exchange counter.

Important: Before you go, call your bank and ask how much withdrawing cash will cost you. Is there a charge per withdrawal? A percentage? Ask about charges and fees for using your debit and credit cards. If you have multiple cards, chances are one will be cheaper for you to use. (Here are some questions to ask them.)

Finally, if you don’t even use an ATM card back home, as you prefer to head into the bank to withdraw cash the old school way (I’m looking at you mom!), please get an ATM card before you leave for Europe. Just ask your bank, and you should have one within days. It will make your life much easier and help you save. (Just make sure to remember your four-digit PIN code.)

Think Rome will leave your budget in ruins? You might want to re-run those numbers!

6. Reconsider “too-expensive” destinations.

For years, we’ve been writing about how budget travelers should consider “cheapo alternatives” to Europe’s most expensive destinations. Want the sunny weather and beauty of Barcelona, but not the price tag? Consider Lisbon–with its warm climate, friendly locals and much cheaper prices.

While we’re still big fans of Lisbon, it’s worth pointing our that Barcelona and other expensive destinations (we’re looking at you, Rome, Venice, Paris…) that use the euro just got cheaper and are worth reconsidering. Run the numbers. They might just be in your budget again!

Do you know which countries use the euro? Click the map for a full list.

7. Stick to Eurozone countries.

Finally, and most obviously, remember that these savings for American tourists only apply to visiting countries using the euro. As of 2015, the euro is the official currency in the following 19 countries:

Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. It is also used as a currency in Andorra, Monaco, San Marino, and Vatican City.

While the dollar is stronger against the British Pound than it was last summer ($1.49 for 1 GBP today, versus $1.70 last summer), the change is less dramatic. Still, even pricey London is a better deal for Americans these days!

Your tips?

What ideas do you have for making the dollar even stronger for Americans when traveling abroad? Share with us in our comments section below!

The post 7 Ways to Make Your Travel Dollar Even Stronger Abroad appeared first on EuroCheapo's Budget Travel Blog.

Among the areas of Europe where business boomed were those countries most beset by economic misfortune. Greece, Portugal and Ireland all recorded double-digit growth in tourist numbers in 2011. Recession does nudge prices down, and budget-conscious tourists are quick to reap the benefits.

A Thomas Cook advertisement for the 1900 holiday season. Photo: Vintage Ad Browser

The Cook Connection

But cast back 150 years, before the days of mass mobility, and tourism was altogether a more select trade. In 1862, some 40,000 Americans visited Europe. Yet the travel game was not all one way.

A growing band of adventurous European travelers, particularly from Britain, were beginning to discover America as a vacation destination. Among them was a man called Thomas Cook, who had already established a formidable reputation in Britain for his appreciation of the nascent tourism industry.

Fighting Protectionism

Cook’s business had revolutionized tourism in Europe, with the amiable entrepreneur personally escorting tours to all the main “must-see” sights (often dubbed “the lions”) and to less explored territories. So Cook went to the US, full of expectation and just slightly miffed when, upon disembarking in New York, the United States customs levied a hefty import tax on his publicity materials.

Cook’s early efforts in the US met with a mixed reception. On the plus side, his company had a hand in fixing the first luxury cruise ever to depart from America’s shores, a moment that Mark Twain nicely recorded in Innocents Abroad. But not being a US citizen, Cook fell foul of US protectionism.

By 1872, the New York Times was bemoaning the fact that the USA had no home-grown Cook: “If we only had an American Cook, how much of the troubles of our tourists would be simplified,” opined the editor.

From travel tickets to travel finances

Thomas Cook & Son did eventually get a foothold in the US market, briefly engaging an American partner who turned out to be a scoundrel. In time Cooks grew to become an American institution as much as a British one, pioneering the use of hotels vouchers, travelers’ checks (then called “circular notes”) and allowing its American clients to book train tickets from one end of Europe to the other. Cooks would cover everything, providing reservations for the ocean crossing, for train journeys on European railways, meals and accommodation.

The First World War put a sudden stop to this brisk trade. And thereafter travel was never quite so simple as it had been in those halcyon days when an omniscient (and seemingly omnipotent) Cooks agent seemed to be available on every ship, at every quayside and on every railway station to smooth the path of novice travelers.

Those were indeed the days.

The post Those Were the Days: Tourism before mass mobility appeared first on EuroCheapo's Budget Travel Blog.

I came to Barcelona in 2005, and my goodness there was a lot I didn’t know! An ex-pat friend and I often joke that if we had known what it would take to establish ourselves in this sunny metropolis by the sea, we never would have come. Yes, it was that hard.

Don’t let these less than encouraging words burst your bubble if you’re hot on moving to Barcelona. Come! Come now while prices on apartments are low! Come, but bear in mind these useful tips:

1. Learn at least some Catalan.

Did you know we speak Catalan here? Never heard of it? I hadn’t when I boarded my flight to Barcelona by way of Paris, but found out real quick that Catalan is not Spanish, and that you need to speak it to get a number of jobs in this city.

Catalan is spoken throughout Catalonia, in Andorra, and on the islands of Ibiza, Mallorca, Menorca and Formentera. It’s a language, not a dialect, and is a very important part of the culture here.

Depending on how long you plan on staying, you’ll need to take a stand on Catalan: To learn or not to learn it. If you want to work in a public school, or in almost any “local” job, you’ll need it. If you’re working for a foreign company or teaching English, you won’t.

All Catalans are bilingual, so you can also get by with Spanish. That said, Catalans appreciate it when you speak in Catalan – go figure! I’ve been here six years and speak very little Catalan day to day, but understand a lot and have taken a couple of courses. I can order coffees and ask for the time. The Catalan government offers FREE classes to those who are interested in learning the language.

2. Rent a room before you rent a flat.

I recommend living in either one of the Eixample neighborhoods, Gracia, Barri Gotic, Poble Sec, Poble Nou, Raval, or La Ribera if you want to be where the action is in Barcelona. There are many other barris, or neighborhoods, but most of them are out of the way or ugly (La Pau, for example, is awful). Still, the best way to find out which barri is right for you is to rent a room in one of these areas and then explore from there.

3. Know your budget for renting a room or apartment.

Renting a room can range anywhere from €200 to €600 a month, depending on how big it is, the zone, cool-factor, private bathroom, etc. Renting a flat usually runs somewhere between €600 and €1200 (and up), but these prices have come down a lot recently thanks to very high unemployment in Spain.

If you find an apartment through a rental agency, expect to pay at least one month’s rent as a commission. You may also need to have a work contract, which is a perfect catch-22.

4. Know how to work in Barcelona.

It’s not easy right now to get a job in Barcelona or anywhere in Spain because of that nasty unemployment issue. The economy here is not great. However, depending on what your skills are you may be able to find gainful employment. Infojobs.net and Loquo.com are logical places to begin your search.

If you’re not European, and you don’t have a visa, you will have to work illegally. Many employers do not want to break the law, so you Americans and Canadians out there, bear this in mind! If you’re interested in getting legal in Spain, you need to see an immigration attorney. Don’t think you can do it on your own, no one is that smart or that patient.

5. Meet people.

The best way to get into the groove and find your place in Barcelona is through people who already live here and know the drill. Meetup.com has a ton of groups in Barcelona, many of them perfect for practicing your Spanish/Catalan, meeting locals, and getting a better idea of what Catalonia is all about.

6. Other Web resources

Aside from Meetup.com, here are a few sites that I have found useful over the years. Good luck!

* In English, a guide to what’s happening in the city: http://www.barcelona-metropolitan.com/

* Short-term rentals and info on the city: http://suitelife.com/

* Multi-language paper and web on Barcelona: http://www.bcnweek.com/

Other tips for moving to Barcelona?

Did you move to Barcelona and have other advice for those looking to make the move? Ready to establish yourself in Barcelona but have some questions? Talk to us in the comments section.

The post Moving to Barcelona: What you need to know appeared first on EuroCheapo's Budget Travel Blog.

As of today, the US dollar is stronger against the euro than at any time since April 17, 2006. This morning the euro was trading at US $1.23, a remarkable drop from its high on December 3, 2009, when the euro hit $1.51.

The financial implications for Americans traveling in Europe now or heading to Europe soon are very real. Simply put, you’ll spend the same amount in euros, but spend a lot less in dollars.

Take, as a very basic example, a hotel room that costs €100 a night. In December, it would have cost $151. Today the same room costs $123. That’s a savings of $28 per night. Now, multiply that sort of savings by every night in a hotel, every meal in a restaurant, every trip on the Metro — and you’ll see how this can really add up.

There are winners and losers in every currency fluctuation. The high euro of the past several years has been great for Europeans visiting the United States, but not so great for the European travel industry, which has seen a sharp decline in American tourists visiting Europe. With a suddenly stronger dollar, Americans will regain spending power that we haven’t seen since 2006. Hopefully, this will inspire more Americans to travel abroad while also benefiting the local economies.

Taking advantage of the exchange rate

Will the dollar continue to get stronger against the euro? Of course we can only speculate. It’s been so many years since we saw it this strong, however, that our instinct is to try to take advantage of these rates now, lest they don’t last.

Americans traveling abroad right now are already taking advantage of the strong dollar with every purchase and ATM cash withdrawal. For those preparing to head over in the next couple of months, it would make sense to “lock in” the exchange rate by pre-paying for anything you can right now in euros. (Unless, of course, you think the dollar will continue to get stronger. If that’s the case, disregard the rest of this post and pay as you go!)

Many (if not most) parts of a trip are paid for during the trip. Hotels, for example, are usually paid for upon check-out. Food is paid for several times a day — and hardly ever in advance! The same goes for most incidental charges.

However, there are some ways you can take advantage of the exchange rate now by pre-paying in euros. These include:

1. If you’re going to buy euros from your bank, do it now.

This is a funny “tip,” as we usually tell readers not to spend much money at all on pre-buying euros. “Wait until you get to the airport, then hit the ATM!” we cry.

However, it is a good idea to have some euros in your pocket upon arrival — after all, the airport ATM could theoretically be out of order. Buying euros from American banks can be an awkward, time-intensive, maddening affair — and you could end up paying a fee or not getting the best exchange rate. However, if you already are planning on going to the bank for some euros before your trip, go now!

Side note: For visitors to almost any European destination, we recommend arriving with just enough euros to get your group into town and get something to eat, if necessary. Once there, head for an ATM.

2. Book any European-based flights between cities now.

You probably won’t see big savings on US to Europe flights anytime soon, as carriers have cut back on the number of flights in order to drive up ticket prices and recoup some recent losses. However, if you’re planning to take European-based low-cost airlines between cities in Europe (which is a budget-friendly, if not environmentally-friendly way to get around), you can pay for those flights in euros and should book them now.

These include flights on Ryanair, Air Berlin, Germanwings, WizzAir, and many others (which we cover in our budget flights guide). Given the dollar’s strength against the British pound ($1.42 yesterday, the lowest since March 2009), this also holds true for booking easyJet flights in British pounds.

3. Book any train journeys now.

Which brings us to another favorite point, book your train journeys directly with the European railways and not through a US-based agent. Companies in the US often charge expensive prices for passes (like the Eurail), which are designed only for Americans — and sold in dollars, which won’t be affected by the changes in exchange rates.

Instead, book point-to-point train tickets directly with the national rail Web sites, be it the SNCF (France), Trenitalia (Italy), Deutsche Bahn (Germany), etc. For much more on this subject, please see this post on booking directly and this for booking an SNCF ticket in French!

4. Ask if you can pre-pay for your hotel.

This request may be greeted with outright laughter, but it’s worth a try.

Most hotels, especially budget-friendly hotels, will only let you pay for your room upon check-out. This is done for a number of reasons — it’s how their reservation agencies work, they may not be able to make a charge for a service not yet performed, it’s too much of a hassle to refund if you cancel, etc. (Most hotels, however, will ask for a credit card number to guarantee your room and will charge it only if you cancel.)

However, you could always ask if the hotel can charge you in advance in euros for your stay. Hey, it’s worth asking!

5. Pre-book airport transportation.

We recommend taking local transportation from your arrival into town. This usually means a train, bus, or subway, most of which will not be able to be pre-booked. However, sometimes you need something more dedicated, like a private shuttle bus, car service, or taxi.

There are numerous companies that offer ground transportation from European airports to city centers or even hotels. One budget-friendly option is Terravision, which runs comfortable low-cost buses from the airports of major cities. Pre-booking these fares, in euros, could save you.

6. Pre-book tickets for tourist sights and museums.

Finally, think of the major attractions that you plan to visit during your trip. You may be surprised to find that many of these offer online pre-booking in euros. From tickets to the Uffizzi in Florence to tickets up the Eiffel Tower in Paris, you can buy them online in euros, and then skip the line.

Some words of caution: Make sure that you’re buying directly from the museum or attraction and not through a third-party company that will be tacking on a commission. (Double check the URL of the site. Also, check out the prices on the “official” Web site and make sure it’s the same price you’ll be paying.)

Also, don’t overdo this. Travel should be fun and spontaneous. Nothing crushes spontaneity as quickly as an overbooked trip, dictated by an overzealous to-do list. (For more on this, read this controversial essay on visiting “Paris without the Louvre.”)

Foreign transaction fees

It’s important to note that many American credit card companies now charge “foreign transaction fees” (up to 3%) for purchases made with foreign companies, even if made from the United States. For much more on this, see our post on fees for ATM withdrawals and credit card purchases in Europe.

Final note

Of course, if the dollar continues to grow stronger against the euro, you could find yourself in Europe with an even more advantageous exchange rate than today’s. In that case, you would have benefited from NOT pre-booking anything. Only time will tell.

Either way, one thing is for sure: Travel to Europe hasn’t been this budget-friendly for Americans in many years. If you’ve been putting off that trip, consider this your wake-up call! Happy travels.

Other ideas?

Do you have any other ideas for ways that Americans traveling abroad can benefit from the suddenly stronger dollar? Please tell us about it in the comments section below.

The post 6 Ways Americans heading to Europe can benefit now from a stronger dollar appeared first on EuroCheapo's Budget Travel Blog.