Revealed: Americans can fly to Europe for the SAME PRICE as a domestic flight (and they can explore Amsterdam and London for just a few dollars)
- Domestic airfare in the US was 30 per cent higher from May 2019 to May 2022
- Flights from the US to Europe were only up 13 per cent at the end of May 2022
- A dollar can buy more euros than it has been able to since the euro launched
Americans may find they’re able to fly across the Atlantic for a vacation in Europe for the same price as a domestic trip
It may sound absurd, but Americans may find they’re able to fly across the Atlantic for a vacation in Europe for the same price as a domestic trip.
One travel expert has pointed out that for the same price as a U.S domestic airfare, Americans could fly to Iceland or Ireland. And cities such as Amsterdam, London and Copenhagen can be explored for bargain prices thanks to a highly favorable exchange rate.
Hayley Berg, lead economist at Hopper, a travel booking app, has this message for Americans willing to pay to fly domestically: ‘There is a good chance there is a flight to somewhere else in the world for about the same price.’ Here’s more on why now could be the time for a European adventure…
AIRFARE IS LESS INFLATED IN EUROPE
Airfare this summer within the U.S will cost $600 to $800 – at those prices Americans can get to Reykjavik, Iceland, or Dublin, Ireland, says Hayley Berg, lead economist at Hopper
Domestic airfare was 30 per cent higher at the end of May 2022 compared with May 2019, according to data from Hopper.
‘Airfare this summer within the U.S will cost $600 to $800,’ says Berg. ‘At those prices you can get to Reykjavik, Iceland, or Dublin, Ireland.’
Indeed, flights from the U.S. to Europe were only up 13 per cent at the end of May 2022 compared with the same period in 2019, according to Hopper. That trend squares with tourist demand, which remains below pre-pandemic levels: About 19 per cent fewer U.S. travelers left for Europe in May 2022 compared with May 2019, before the pandemic, according to data from the International Trade Administration.
Put simply, prices and demand for flights to Europe are increasing, but not as quickly as they are elsewhere.
‘Given how high domestic airfare is, you can get more bang for your buck with longer-haul destinations,’ explains Berg.
THE DOLLAR IS STRONG
A dollar can buy more euros than it has been able to since the euro launched. U.S. travelers will enjoy this benefit on everything from food and lodging to events and transportation. Pictured: Amsterdam
Although 2022 may go down as a bear market for everything from stocks to cryptocurrency, the U.S. dollar has gained ground on many foreign currencies. The dollar was 15 per cent stronger against the euro in May 2022 compared with May 2021, according to data from the Federal Reserve.
‘Today what we’re seeing is that a dollar can buy more euros than it has been able to essentially since the euro launched,’ says Berg.
This means that anything purchased while traveling in countries that use the euro will be at a 15 per cent discount, if currency exchange rates remain stable. U.S. travelers will enjoy this benefit on everything from food and lodging to events and transportation.
Of course, global inflationary pressures continue to drive up prices everywhere, including Europe. Annual consumer prices in Germany were up 7.9 per cent in May, according to the Financial Times, just shy of the 8.6 per cent increase in the U.S. Yet, while prices may remain elevated nearly everywhere, the relative strength of the dollar can help soften the blow.
PUBLIC TRANSPORTATION CAN HELP AMERICANS SAVE
Cities such as Amsterdam, London and Copenhagen can be roamed for only a few euros, which is equivalent to only a few U.S. dollars with favorable exchange rates
Inflation has hit no aspect of travel more directly and dramatically than the cost of renting and operating a vehicle. Rental cars prices were up a budget-busting 69 per cent in May 2022 compared with May 2019, according to U.S. Bureau of Labor Statistics data. And everybody knows how high gasoline prices have jumped.
These factors should make this the summer of public transportation for money-conscious travelers. Yet the U.S. offers few tourist destinations that can be explored by train.
Not so in Europe, where most popular cities offer safe, affordable and dependable transit. Cities such as Amsterdam, London and Copenhagen can be roamed for only a few euros, which is equivalent to only a few U.S. dollars with favorable exchange rates.
Visiting national parks in the U.S. made sense in 2020 and 2021 for a host of reasons. But saving money in 2022 means skipping cars outright when possible.
OFF THE BEATEN PATH?
We are in strange times indeed when traveling to Europe represents an off-the-beaten-path, budget-friendly choice. Yet the facts speak for themselves. Airfare to Europe is rising less quickly than domestic tickets, and fewer travelers are visiting the continent. The dollar is strong, and the U.S. has dropped its testing requirement for arriving travelers, which made leaving the country a pain.
All this has combined to make Europe a good choice for travelers in an upside-down year. Riding the rails in Zurich could prove cheaper than renting a car in Cleveland.
This article was provided to The Associated Press by Sam Kemmis at personal finance website NerdWallet.
Source: Read Full Article