The last time the value of the euro bottomed out against the U.S. dollar, it was May 2022. People were exhausted from dealing with Covid, flight schedules were still curtailed, and high summer airfares were setting in. Many people still couldn't afford to get to Europe to take advantage of the big value.
The euro is drooping again. But this time, it's happening just as the low season for transatlantic airfare is kicking in.
In recent days, the value of 1 euro against the American dollar sagged to as little as $1.034.
That's a huge swing compared to just 3 months ago, when a euro cost about $1.12.
The value of the euro is one of the most important factors in making a European vacation affordable. In May 2014, for instance, a single euro was worth $1.37, which translated to a 37% upcharge on everything an American bought while in Europe. The extra expense added up fast.
That was a rough time to be converting dollars to euros. But the pendulum swings, and this is a good moment. Today, travelers who have bank accounts in dollars will only have to spend an extra 4 cents for every euro.
And the timing couldn't be better. Round-trip flights to Europe "have not been this cheap in three years," CNBC reported last month, averaging $578 in November, down from $619 in November 2023.
The outlook isn't entirely rosy. One reason the euro is drooping is because of political uncertainty.
Europe is facing economic turbulence, and a mess of planned strikes this winter threaten to disrupt flights, trains, and public transit in France, Italy, Portugal, Spain, and the United Kingdom.
That unrest is a factor in the euro's slide, with Bloomberg reporting that Europe's domestic political squabbles have "sapped investor confidence," as have reports that the continent's "biggest economies contracted more than expected."
Some analysts even think the euro and the dollar could soon reach parity—meaning they'd be worth the same.
Even if that doesn't happen, low values for the euro haven't coincided with low-priced airfare like this since well before Covid. There's no such thing as a welcome mat in international travel, but this economic alignment is pretty close—and given the wobbly instability of the global scene these days, there's no telling how long vacationers will be able to take advantage of these potential discounts.
If you've been holding out for a bargain to make plans to see Europe, this season could be your time. If you need help finding affordable plane tickets this winter, consult Frommer's for tips on timing, the best airfare search engines to use, and last-minute strategies to try.
Source: XE.com
