According to a study by the U.S. Department of Commerce’s Office of Travel and Tourism Industries, more than 61 million U.S. residents traveled abroad in 2009, down 3% from 2008. It is interesting to look at the top countries visited by Americans in 2009. Mexico easily took first place, with Canada securely in second place, as the top out-of-country travel destinations. These were consecutively followed by five overseas destinations of United Kingdom, France, Italy, Germany and Japan. It is clear that Europe, with four of the top seven most visited countries, is still a very favored travel region. China and India moved up in the rankings.
While the U.S. dollar reached an all-time low against the euro in 2008 (U.S. dollar only buying about 0.63 euros), the U.S. dollar rebounded strongly against the euro and the British pound since that time. In fact, the dollar recently reached a four-year high water mark against the euro in May 2010, trading up over 0.82 euros. Despite the rise in the dollar, you will still find lodging and food to be expensive in Europe.
In view of the travel expense to and within Europe, should you ditch those plans to “mind the gap” on the London Underground rapid transit system and just be “SMARTA on MARTA”? Does the only slightly stronger “George Washingtons” in your wallet make you want to forgo the delicious gelato of Italy in favor of a trip downtown to the world famous Varsity for a fried peach pie? Should you cancel your trip to visit the Seven Wonders of the World, or just travel a couple of hours to Rock City, Tenn. to see seven states from one vantage point?
If you plan properly and apply some creativity with the power of the Internet to stretch those greenbacks, then you can probably afford that trip abroad this year. First of all, the world economy is still somewhat weak. Therefore bookings are still soft for hotels and somewhat soft for airlines. There currently is more discounting of hotel rooms. If you are opportunistic, lower cost airfares can be found. If you are flexible enough to travel during off-peak seasons for the area you want to visit, the prices will generally be lower. For example, a great time to travel to Europe is after Labor Day, when the weather cools a bit and the crowds thin out.
Some of the airline deals also include hotel rooms. To find the best airfares on your own, start searching websites to see who is offering the best fares. My three favorite multi-airline booking websites are www.kayak.com, www.orbitz.com and www.itasoftware.com. Being flexible on travel dates should yield the lowest fares available. Once you find the airlines with the best deals for when you prefer to travel, you should check the website of those particular airlines you identified. Sometimes you will find an even better deal or a companion travel package that is even more attractive. Just use www.google.com to locate the website of the individual airlines.
When traveling within Europe or Asia, consider using trains. Trains in Europe and Asia are generally more pleasant and utilized more than the ones in the United States. Trains can offer an economical means of travel, and an opportunity to see some of the countryside you would miss by flying. Some train systems offer passes for multiple legs at a discounted rate. Try www.eurail.com for Europe.
A key to keeping your foreign travel within a reasonable budget is by looking at your hotel room for its most basic utility—a place to safely sleep at night. If you have to stay at a hotel comparable to the Hiltons and Marriotts of the United States, you will pay big dollars to achieve that standard overseas. On the other hand, if you are willing to sleep in a smaller and less luxurious room, you can spend less and stay within your budget. After all, the prime purpose of vacationing overseas is to partake in the sights, sounds, food and ambiance of the foreign countries and cultures.
One excellent website for selecting a decent hotel room at a good rate is www.tripadvisor.com. Trip Advisor offers reviews by other travelers and gives you a wealth of valuable information. This website requires you to take some time to browse through various reviews by fellow travelers of hotels, with oftentimes conflicting opinions of the same property. This site compiles all opinions and offers a ranking of hotels in different cities. This process has yielded a treasure trove of value and related ideas for me. By reading the comments, I have found good restaurants with reasonable price in the areas I visited. Discussions about worthwhile, but less known, local attractions and events also appear in the postings on this website. Trip Advisor even offers a booking feature to put in your desired dates to stay, and it will automatically populate multiple booking websites to quickly check out the best rates. This site links to multiple hotel websites, such as www.travelocity.com, www.orbitz.com and www.expedia.com/. It also links to less well-known European and Asian travel booking websites such as www.tablethotels.com and www.booking.com.
Another website I have had success with was www.agoda.com. I found a room at the Rome, Italy Airport Hilton for $140 a night, which was more than $100 below the price the Hilton website was offering. Another website I have had success with is www.hotels.com. Just as with airfares, it is smart to check the websites of the individual hotel or hotel chain to confirm you received the best deal on the multi-operator travel website. Oftentimes, you may be able to get the same or slightly lower rate from the hotel or hotel chain directly. In addition, you might have more flexibility on payment and/or cancellation terms.
Another option to consider is traveling to countries with weaker currencies. Various countries in Eastern and Central Europe, along with some in South American Countries currently offer better value for tourists with U.S. Dollars to spend. In 2010, I traveled to Poland, Hungary and the Czech Republic. These countries all emerged from the grip of Communism some 20 years ago. These three countries warmly welcome American tourists. The sights, sounds and attractions to see are abundant in these countries. The relatively weak currencies of Polish Zloty, Hungarian Forint and Czech Koruna make travel to these countries timely and more affordable in 2011.
Travel can be one of life’s great adventures, so do not let the woes of the economy stop you from traveling this year. Apply a bit of American ingenuity to find the best deals that will enable you to keep your travel plans and your budget intact. Bon voyage!
Disclosures
This article is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.
