According to Hopper data, Europe is the most popular travel destination for consumers this summer. However, the price of a European dream vacation is about to get more expensive. For the culprit, look no further than the euro-dollar exchange rate.
Yahoo Finance Host Madison Mills joins Wealth! to break down why European summer travel plans are about to get more expensive.
For more expert insight and the latest market action, click here to watch this full episode of Wealth!
This post was written by Nicholas Jacobino
Video Transcript
Travel to Europe is the most popular international destination for consumers this summer.
That’s according to data from Hopper.
But the price for that dream trip on the French Riviera is about to get more expensive.
Our very own Madison Mills is over at the big board and she’s going to break down.
Why?
Matty?
Hey Brad.
So I know we don’t love to talk about currencies.
But in this particular case, the euro dollar is going to be a big driver of why your European travels this summer might not be as affordable as they were previously.
So I want to pull up the Euro dollar.
You can see moving to the downside on the day here at one of seven.
That means that it’s going to be a less favorable exchange rate for travelers.
I just want to pull up one specific example here, a 500 hotel, your hotel room is going to equate to about $550 right now.
So obviously that is not going to be favorable for travelers also because of just general inflation that we see you’re seeing that some of the experiences like entrance to the Eiffel tower that you mentioned, Brad, that’s going to be up about 20% compared to last year.
You can see again that hotel room rates are increasing by about 10%.
That is according to reporting from hotel monitor.
Now there are some opportunities in the space for travelers, particularly when it comes to something like airfare, airfare has decreased for travelers over the course of the past year here, we’re seeing that average airfare from the US to Europe is around 892.
That is down 16% year over year.
So as long as you can make it there, that is at least one area of cost savings.
Also some experts saying that if you’re willing to look outside of city centers, particularly in a place like London in France, for example, you might be able to see better opportunity.
And in France, in particular, you’ve got the Olympics coming up this summer that actually can lead to a little bit of a decrease in tourism to cities.
People tend to avoid them during those big 10 pole events.
So you could see some price favorability around that event as well.
And also another final tip, look for some of the ho those hotels that are gonna have a lower star rating, those higher star rating hotels have so much demand from the pent up travel demand that we’re seeing overall in the space that is giving them the ability to increase those prices.
So maybe take on a little bit less of fancy hotel for yourself so that you can afford that trip, a broadband.
All right, thank you very much, Mattie Mill Messy.
Be cool Monami.
Thanks.
Appreciate it.