Strengthening euro makes travel to the USA and Asia cheaper!

Strengthening euro makes travel to the USA and Asia cheaper!

The euro has strengthened significantly against the dollar since the beginning of the year, marking an exchange rate of 1 euro = 1.14 dollars, compared to 1 euro = 1.04 dollars at the beginning of the year. This development is interpreted as a result of declining confidence in the US currency. Foreign exchange expert Michael Pfister from Commerzbank emphasizes that the euro has made up for the losses from the autumn of the previous year, when the exchange rate tended almost to parity. Despite this positive development, Pfister advises not to take short-term exchange rate movements into account when planning your vacation, while long-term trends can have a significant impact on travel decisions. Traveling to the USA has become significantly cheaper as a result, and long-haul destinations in Asia such as Thailand and South Africa are also becoming more attractive, although flights there are more expensive. However, the cost of living in these countries is generally lower.

However, holiday planning for Turkey is particularly critical. Despite the weak lira, vacations there have become more expensive. This is due to high inflation, which has significantly increased the costs for German tourists. Inflation rate in Turkey rose from 38% in June 2023 to an alarming 64.8% in December 2023, and a further increase is expected in 2024. This will inevitably lead to higher prices in hotels and restaurants. The average prices for hotel rooms are now 138 euros in Istanbul and 110 euros in Antalya, which corresponds to an increase of 37.4% compared to 2022. However, Turkey remains a popular holiday destination in 2024, particularly on the Aegean and Riviera, as the resorts are well-suited to package holidays and offer long sandy beaches and excellent swimming conditions.

Price development and reactions from holidaymakers

Despite the rising prices, bookings from Germany remain at a high level. German vacationers tend to save money on vacation rather than completely forego travel. While individual trips offer advantages due to the lower lira exchange rate, package trips are often more expensive. Tour operators are under pressure to develop new offers; Cheaper basic packages are in demand instead of expensive all-inclusive offers. Russian tour operators are already offering alcohol-free all-inclusive packages that are cheaper and represent an interesting alternative.

This shows that exchange rate and inflation developments create a complex situation for travelers that presents both opportunities and challenges. Europe remains the Germans' preferred holiday destination, especially on the Mediterranean. Exchange rate effects in Europe have no longer been relevant since the introduction of the euro. Those interested should consider these aspects when planning their trip and make targeted adjustments if necessary.

For further information and details on the current exchange rates and their impact on travelers, we recommend taking a look at the article from daily news as well as the assessments of price trends in Turkey Travel reporter.