A weaker dollar, skyrocketing prices and ‘record’ visitor numbers: Good luck in Europe this summer – CNN

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Temperatures are rising, hotel prices are soaring and travelers are already It is bad mannersWelcome to a new European summer.

Judging by the headlines, it’s already a mess. Well-known sites include Admission fee increaseHotel rooms are like gold dust, and the dollar has fallen against both the pound and the euro.

Oh, and there’s also the issue of crowding. “We’ve seen a significant increase in demand compared to last year,” he said. European Tourism OrganisationRegarding American travelers to Europe, he said: “We will have more travelers in 2023 than we did in 2019, and we will definitely have even more this year. We have more Americans visiting Europe than ever before.”

Kayla Zeigler agrees. Destinations in EuropeShe is sending a record number of clients to the continent this year.

Graham Carter, Director An unforgettable journeyTravel companies that represent 90% of their U.S. customer base say many customers are finding travel to Europe too expensive this year.

“People are wondering if it’s even worth going to Europe,” he said. “It’s booked up well in advance and the prices are pretty high. There’s been a huge increase in demand for travel over the last three years and prices have gone up in a lot of places.”

Has Europe’s summer already been ruined by rain? Experts say it depends on what sacrifices you’re prepared to make.

For starters, travelers from the U.S. are already at a disadvantage because of the weak dollar, which was trading at 91-92 cents per dollar against the euro as of June 5. Of course, that’s better than the five-year low it hit between December 2020 and January 2021, when it hovered around 82 cents per dollar. But it’s down from 95 cents per dollar a year ago, and a big drop from the five-year high of 1.04 euros last September, according to currency conversion experts. wise.

It’s a similar story for people travelling to Britain: This time last year, tourists were earning 80 pence on the dollar; as of Wednesday it was 78 pence, down from a peak of nearly 83 pence in September.

The dollar has also fallen year-over-year against more than 11 European currencies, putting travelers exchanging dollars from Bosnia to Bulgaria, Denmark to Iceland, Poland to Romania, Sweden to Switzerland at a disadvantage. A few cents on the dollar per transaction doesn’t mean much, but every little bit counts when it comes to your credit card bill when you return home. A 500-euro hotel room was the equivalent of $543 at Friday’s mid-point, up from $480 in September.

But it’s not all bad. In Europe, the dollar is strong against three currencies – the Czech koruna (21.9 to the dollar last year, 22.7 now), the Hungarian forint (344.7 to the dollar last year, 359.4 this year) and the Ukrainian hryvnia – but few will consider Ukraine as a holiday destination this year. One currency against which the dollar is unusually strong is the Turkish lira; last June tourists were exchanging one dollar for 21 liras; this week it’s at 32.

On the ground, Inflation is risingAdmission prices are increasing. The Eiffel Tower is increasing admission prices by 20%. June 17Istanbul Hagia Sophia is now a paid attraction Admission fee is 25 euros. Venice is Charge for day trippers On peak days it’s 5 euros.

But admission fees are nothing compared to hotel costs, and Jenkins said prices have risen “pretty dramatically” in major cities. Hotel Planner,Agree.

“In many cases, a hotel room that was $300 a night last year is now $500,” he says.

But that’s not necessarily because hotels are randomly raising prices. It’s because of high occupancy, he says. When hotels are full, the remaining rooms become more expensive. “It’s a question of how much can hotels sell of that last 10 percent of their inventory? With the squeeze, rates are really starting to skyrocket,” he says.

“So when occupancy hits 90%, a $350 room might jump to $500. The whole hotel isn’t selling for $500, there’s a section that’s selling for $250. The procrastinators are paying the $500.” He’s a self-described procrastinator, so he should know that.

Data Source Hotel MonitorAmerican Express Global Business Travel’s annual analysis of global hotel prices backs up his theory. In its 2024 hotel industry forecast, the company predicts room rates will rise by around 10% in many major European cities. Paris, Amsterdam and Dublin are all expected to see increases of 10-11%, while Berlin, Stockholm, Barcelona and London are all expected to see increases of more than 9%. The bottom line: Stop procrastinating.

Henschel says these price hikes aren’t across the board, but rather are happening at the higher end of the property spectrum, which is good news. That’s why Henschel advises looking down the star rating to find a good deal. “One- and two-star hotels don’t have the pricing power,” he says. The same goes for hotels a little further from your destination. “Go to Murcia instead of Marbella, Milos instead of Mykonos,” he says. “You’ll get the same sunsets and Instagram photos for a tenth of the price. These aren’t downgrades, they’re hotels that haven’t been on Condé Nast’s top 10 list for the last decade.”

If you want to stay in the city, he suggests trying one of the suburbs. In London, for example, a five-star hotel can cost as much as £1,000 (about $1,270) a night. “But once you get outside the M25[London’s outer ring road]it’s hard to find a three- or four-star hotel for £100 a night.” The top London pick? Windsor, the royal home town, just a 29-minute train ride from Paddington station.

The best place? A three-star hotel in the second destination, which he says will still be a good deal even in the awful summer of 2024.

Though it may not feel like it, airfares between the U.S. and Europe are on the decline, he says. hopperAccording to her data, which compiles airfare searches from around the world, the average airfare from the U.S. to Europe this summer is 16% lower than in 2023, at $892 round trip.

In fact, she says, “Europe is on sale this year.”

The situation is even better for major destinations: Hopper data for June showed the average price for a round-trip flight from the US to London was down 21% year-over-year. On the continent, major destinations Rome, Barcelona, ​​Athens and Paris all saw steep double-digit price declines of 34%, 37%, 28% and 38% in June, July and August, respectively.

None of these fares are exactly free: While prices are still higher than 2019, they’re on par with 2017 and 2018, suggesting that the rampant post-pandemic price hikes may be over. Berg calls this a “return to normal pricing.”

Did someone mention crowds? From day-tripper prices in Venice to protests by residents of Mallorca, skyrocketing tourist numbers and anti-tourism measures have some people wanting to stay away from Europe’s famous destinations.

Jenkins talks of a “weakening demand” for “major cultural cities”.

Carter’s clients avoid July and August because of the crowds and heat, preferring May, June and September, but this year even those quieter months are a concern.

“More and more people are avoiding Venice, Rome and Florence,” he said. “People are saying, ‘I want to go to Italy, but I want to avoid the crowds.'”

They are doing the right thing. 2023 134 million “arrivals” Italy recorded its highest ever visitor numbers, half of which were foreign, according to data from the Italian Tourism Ministry, and there are signs that the number is set to surpass that in 2024 thanks to what Tourism Minister Daniela Sant’Ancie called a “targeted strategy.”

Zeigler says clients booking popular destinations this year are facing reality before they leave: “We explain to clients visiting high-traffic destinations about crowds and often plan tours and activities around peak crowds to make the experience as comfortable as possible,” she says, adding that clients visiting the Amalfi Coast are booking accommodations a little outside the main sites, such as in Praiano or Ravello, rather than Amalfi or Positano.

Carter sends hesitant travelers to rural areas like Puglia and Sicily, or advises them to go to completely different countries, like Slovenia (with its mountains and wineries) instead of Italy or Croatia instead of the Greek islands. Ireland and Portugal are also becoming increasingly popular among his clients.

Jenkins has a novel suggestion: France. Olympic host cities tend to see a drop in tourism around the time of the games, he says. And because Paris is the main attraction for tourists visiting France, he thinks regional cities will be less crowded than usual. His prediction seems to be coming true: Amex GBT analysis predicted that hotel rates in Paris would rise 11% this year, but so far they have only risen 8%. And a 38% drop in airfares to Paris’ Charles de Gaulle airport seems very appealing.

For travelers who stick to their usual destinations, extras and activities are a real hit this year, says Henschel, who just booked a trip for a client to the Amalfi Coast that included a 60-minute massage for $400. “Travel is at an all-time high and inflation is high,” he says. “Activities are skyrocketing.” And they’re selling out fast, so if you want to book, hurry. Zeigler says local costs are about 30% higher for his clients than in 2019.

So, is there still time to plan your European summer, or is it too late already?

Berg advises booking that flight early; prices are only going to go up. Or, “if you have flexibility, go in September,” she says. She predicts a similar year-over-year drop in fares, on top of the usual 10-30% price drops in the fall. Or, wait a year; Berg predicts fares between the U.S. and Europe will remain the same or fall into 2025.

Henschel advises people booking late to try “alternative accommodations” – lower star ratings, staying in more remote locations, or trying something more like a B&B.

Carter says there is still availability in July and August, but warns not to expect any last-minute deals, but honestly recommends waiting.

“I would say forget about summer. If you want to get any value out of your travel, you’re better off looking at fall 2024 or spring 2025.”

“I think I’m just going to get stung this summer.”

“The earlier you book, the more you save,” says Henschel. Make that your travel motto for the future as travel numbers continue to grow in Europe.