The surprise silver-lining story of last fall was that just as the global economic crisis went full throttle, the dollar started rebounding. And it started rebounding while travel operators were hedging currency for 2009 pricing. What that meant for travelers was great 2009 pricing in Europe, with many operators either holding prices or even reducing prices for 2009 over 2008.
Now, as the industry is entering the 2010 hedging and subsequent pricing period, the dollar is starting to lose ground a bit, having reached a near six-month low against the euro, which was trading at 1.41 to the dollar on May 29. The euro is still 20 cents below last July’s 1.60 high, and the pound is far from nearly grazing 2 to 1, which is where it was hovering last summer as well. Add to the newly weakened dollar the possibility of rising fuel prices, which could mean more expensive transportation costs (including flights) down the line.
Bottom line, according to travel industry experts, is that people should go to Europe — now.