Pack Your Bags: The Euro Is at Its Lowest Rate in More Than 2 Years
Update: Some offers mentioned below are no longer available. View the current offers here.
This week, the euro fell to its lowest level against the dollar in more than 26 months, according to FX Street, following the floundering British pound, which just hit a 30-month low against the dollar. As of Friday, Aug. 2, the exchange rate was hovering around $1.21 for every pound and $1.11 for every euro. That's really unusual.
It's been years since a dollar even almost stretched as far as the euro, but as a no-deal Brexit looms closer, the pound is expected to tumble even further. Analysts are predicting that the pound could bottom out at lows not seen since travelers could still fly People Express to London. And while these closer-to-parity exchange rates are not necessarily great news for everyone, they do make now one of the most affordable times for Americans to cross the pond in years. Here's why.
Related: Exchanging Currency for an International Trip
Eat, Drink and Explore for Less
Back in August of 2011, the exchange rate was about $1.40 for every euro. For quick math, that meant that something that cost 10 euro — a quick, inexpensive meal in Spain, for example — cost an American visitor closer to $14, which could be pretty painful for travelers multiplied out over a week or more in Europe. But now, whether you want to take a tour, eat a fine meal or simply stretch your dollar, the math is much more in your favor.
That high-end cocktail Europe can easily set you back 16 euros or more. Today, that's a $17.70 drink — but in 2011, that might have been a $22.50 beverage.
Today's favorable exchange rate could mean the difference between sticking to largely grab and go food or actually sitting down for a nicer meal or drink. But especially for families, the exchange rate could have made certain activities downright prohibitive. Tickets to the top of the Eiffel Tower, for example, start at 48.60 euros (about $54) for a family of four, when two children are 11 or younger. If that same family were to have visited in August of 2011 (assuming ticket prices were the same) that price may have leapt to nearly $70.
Score Cheaper Flights
It's not just what you do when you get to Europe that is now more affordable for those with US dollars, but how you get there. According to a recent report from Hopper, flights to cities all across Europe — even during the peak spring and summer months — have been on a steady three-year decline. Yet even compared to the low, average round-trip cost of flights between the US and Europe ($909 during the summer) we're seeing flights available for less than half that price.
We did a quick search using Kayak's explore tool and found round-trip economy flights in August between New York-area airports and Madrid (MAD), London Heathrow (LHR), Amsterdam (AMS) and Dublin (DUB) for less than $400.
Award prices are trending downward, too. We searched on Delta, and saw the same thing for the above timeframe. As you'll see below, some flights are pricing at just 31,000 Delta SkyMiles (plus about $46 in taxes and fees). Based on our latest valuations, though, those 31,000 miles are worth $372; add in another $46 in taxes, and you're looking at a value of $418. It's definitely worth comparing your options here, because cash may be your best bet when ticket prices are so low.
Of course, if you're purchasing in cash, be sure to use a credit card that earns you bonus points on airfare purchases, such as the Chase Sapphire Reserve for 3x points or The Platinum Card® from American Express for 5x points when booking directly through the airline or through amextravel.com.
Related: Best Ways to Use Miles to Get to Europe
Snag Steep Hotel Discounts
The deals don't stop there. Even during the peak summer travel season, we're also seeing solid deals — up to 30% off — on hotel stays with major brands this month. There's the Ritz-Carlton in Vienna which is 22% off and Hôtel de Berri, a Luxury Collection property in Paris for 20% off the standard rate. Just remember, while a strong dollar is a good thing when it comes to saving you money on cash rates, it does, in effect, lessen the value of your travel rewards for particular redemptions, like hotel rooms with fixed point redemptions.
If you're thinking of reserving a property through Hotels.com, book with you and pay with your Capital One Venture Rewards Credit Card via Hotels.com Venture through Jan. 31, 2020 to earn 10x miles on your stay. (You can also take advantage of the Hotels.com Rewards program to earn one free night for every 10 paid nights, effectively boosting your return to at least 20% when you pay with the Venture card.)
Bottom Line
The silver lining to the current exchange rate fluctuations is that your next European vacation paid for with US dollars may be a much better deal than the trips you've taken in most of the last decade. But markets are volatile, so if you're thinking of clicking "buy" on your next trip to Europe, don't wait — now's the time to book.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.