The Euro first came into being back in 2002, and despite the reservations of some of the people living in the participating countries to begin with, it has really made its mark on the world within a relatively short time.
Since those humble days it has proved to be a real competitor in the currency markets. It has grown to become the world’s second reserve currency – second only to the dollar – and is currently out performing many of the world’s top currencies. It has also recently been able to weather the storm that has been experienced in the currency markets, as various countries begin to struggle with the problems caused by a slowing in the economy. As time goes on and the deepening credit crunch bites harder, it will be interesting to see whether the mighty Euro can continue to weather the storm.
Of course all this has been very good for anyone using the Euro, and those living in the so called Euroland countries certainly don’t seem to be having many problems when it comes to benefiting from the power of the currency. But where does this leave other countries?
In recent weeks the Euro has climbed in strength against the pound in particular. The UK didn’t elect to join the Euro when it first came into being, and while there has been no referendum as yet, people in general are still highly opposed to the idea of joining. But this might come back to haunt us, because the pound cannot buy as much in any of the countries which use the Euro as it used to.
While this obviously affects many businesses, they are not the only people to suffer. While the exchange rates are often quoted in terms of how they affect the position and power of businesses around the globe, there is another huge group of people that are greatly affected by the position they are in – and that’s holidaymakers.
If you are from the UK and you are planning on going on holiday to any country that uses the Euro, you are going to come up against the exchange rate between the pound and the Euro – which at the moment strongly favours the Euro over our own currency.
Basically the exchange rate means that you will spend more money to get the same holiday you would have got a year ago. Exchange rates obviously vary all the time, but here is a typical (and true) example. On the 10th April this year the Euro hit eighty pence. So for every Euro you put into your holiday it will cost you eighty pence. But even six months previously to that it was a very different story. Back then it would have cost you just sixty seven pence to buy each Euro for your holiday – so you can see what a difference this currency is making to the British holidaymaker’s wallet.
But you also need to remember that it’s not just booking your holiday which gets more expensive. You also need to think about spending money, and how far your money is likely to stretch when you are abroad. One thing is certain – even though exchange rates are changing all the time, they aren’t very likely to suddenly swing back in favour of the pound any time soon – meaning you need to brace yourself for an expensive break if you want to visit Europe this year.
There are plenty of options once you find yourself in this situation. The main question you need to ask yourself is whether you still want to go ahead and book a holiday in a country which uses the Euro. If you do and you find that money is tight, you could elect to go away for a week instead of a fortnight, although this won’t necessarily save you a lot of money since week long holidays are often more expensive pro rata than fortnight long ones.
A better way to save money is to opt for self catering holidays rather than half board or full board options. You will still need to buy provisions while you are away of course, but you have far more control over what you spend than you do if you are paying for an all inclusive break. You can still enjoy meals out but instead of having them every night you can elect to stay at your resort (or whichever type of accommodation you have selected) and have a wonderful evening in sometimes as well.
It’s obvious that when you are trying to make your money go further you need to think about all the ways that you can save money without compromising your holiday. With this in mind, try thinking about your perfect or ideal destination and start working out ways that you could do it on a smaller budget. It’s helpful to set a rough estimate of what you want to spend on your holiday first and then convert it into Euros using the current exchange rate on any of the leading internet websites. Once you have that rough conversion to hand you will be able to do some research into your preferred destinations to see what things cost when you visit.
To give another example, car hire in particular can be very expensive and it has become even more so in recent months because of how well the Euro is performing. But while it might be nice to have a car at your disposal throughout your holiday, it’s not always necessary.
Public transport is often readily available in tourist areas, and it can certainly be a lot cheaper than car hire. If you have a destination in mind, do some research to see the types of locations you would like to visit while you are away, and work out whether car hire is really necessary or not. Some sights will no doubt be within walking distance and you could always hire a taxi for longer trips.
The moral here is clear – you can still have a great holiday in Europe provided you are prepared to do some legwork in finding a cheaper location and deciding what perks you really need – and which ones you could do without.
If you want to visit a country that deals in Euros, you have the following options to consider:
If you are adamant you want to visit one of these locations you will need to start shopping around early, because some British travel companies such as Thomas Cook have restricted the number of holidays they are promoting to these areas. They have done so because less people are travelling there and that’s as a direct result of the strength of the Euro.
You can also expect prices to be higher than they were in some cases, purely because of the exchange rate. Make sure you don’t dive on the first deal you see (unless it is a really good one) because you will often benefit from shopping around to see what else is available.
On the other hand you can think about booking a last minute deal in the hope of getting a discounted rate. It’s certainly worth keeping an eye out in your local travel agent’s window since they will be keen to shift Euro based holidays that are going unsold. The other obvious place to look is online; there are plenty of websites that offer great deals on holidays and you are likely to get a better rate from businesses which are purely run online and which don’t have a high street presence. Lower overheads often lead to lower prices for the consumer.
On the other hand you may choose to avoid the Euro countries altogether and visit a totally different country which isn’t part of Euroland. Turkey has been a particular favourite with a lot of holidaymakers and that trend looks set to continue all the while the Euro is so strong against the pound. One of the reasons why Turkey is so popular is because the British pound tends to go a lot further there than it does in many other countries - even among those who don’t use the Euro. The country has geared itself up well to cater for holidaymakers and a lot of people who do visit tend to go back for more at some point in the future too.
The price of goods in general tends to be quite low in Turkey so you can expect to enjoy accommodation and meals at very favourable rates. You may opt to go to one of the well known areas or try somewhere a little off the beaten track, but wherever you go you are guaranteed to have a great time for less money than you’d spend on a comparable break in a European country governed by the Euro.
It may be that you have to start thinking of going further afield in order to get a good value holiday. But how do you choose a destination?
If you want to get the best value for money it helps to get familiar with which countries the pound is performing strongly against. America is always a popular destination and the current weakness of the dollar means you will get a pretty good deal for your money. Top spots such as Florida, Los Angeles and New York all provide a wealth of things to see and do and you won’t be worrying about how far your money will stretch while you are out there.
If you have been putting off the possibility of a holiday in America because it’s always proved cheaper to go to Europe, this might just be the year when that all changes. While the pound (and indeed the dollar) is extremely weak against the Euro, you can still get a reasonable amount of dollars for your pound.
This is something of a lucky draw when it comes to thinking about a holiday in America, because although the dollar is just about in the weakest position it has been in some years, the pound is also suffering the same malady. This means you can still actually get a decent exchange rate with the dollar, meaning an American style holiday could be appealing to many more people this year – at least among those who understand a little bit about how the exchange rates work.
Top tip – it’s well worth keeping an eye on how the dollar is performing at the present time, to get the best exchange rate for your spending money. Even if you book your holiday now and don’t plan to go for some months yet, you might want to take advantage of those low exchange rates while they last. In a few months time it could be a very different picture.
An American holiday is always seen as something of a lifetime trip for many Britons, so it makes perfect sense to turn the bad news brought by the Euro into good news for you, and take a holiday US style this year.
Here are some of the delights you could look forward to if you do decide to convert some of those pounds to dollars:
Florida – this is just about the most popular destination for British holidaymakers looking to go to America, and when you think about what you get to see there it’s not hard to see why.
Miami is one of the top destinations and it is also home to the Miami Metro Zoo, which houses all kinds of endangered species and guarantees a great day out for all the family. If the kids love that then you will definitely want to see the Miami Seaquarium as well.
For those who prefer a more leisurely stroll and want to visit one of the most famous and iconic locations in Miami, you won’t want to miss South Beach – a section of Miami Beach that is famed for its shops.
Orlando is another top destination for British tourists, and it’s not surprising when you consider that Universal Studios have their world famous resort located there. You can get great deals on family tickets when you visit the resort, and if you visit their website you will be able to see the latest deals (which at the time of writing included buying a two day ticket with a third day included for free). This is just one example of how doing your homework can make your holiday money go even further.
You’ve also got the impressive Gatorland to visit, which as the name suggests reveals all there is to know about alligators!
Los Angeles – LA is the home of glitz and glamour, and it’s not the kind of holiday you can get anywhere else – certainly not in Europe. This could be what tempts the people who usually settle with European destinations to finally try going over the pond and visiting somewhere new for a change.
One of the must see destinations in LA is the Hollywood Wax Museum. If you don’t manage to see any real life celebrities during your stay, you’ll certainly be able to rub shoulders with the best of them in here.
LA is also one of the world’s biggest sources of prehistoric fossils – an amazing link which sits rather at odds with the fame, fortune and celebrities that inhabit the area today.
Apart from some of the world famous destinations such as Paramount Studios and Sunset Boulevard, you should also make time to see other notable places such as the Knott’s Berry Farm amusement park, which has plenty of rides for all the family to enjoy.
New York – You’ll be glad you get plenty of dollars for your pound when you visit the Big Apple, because there is no shortage of things to see and do. Don’t miss the classic sights of the Empire State Building, the Brooklyn Bridge and the Statue of Liberty, but be sure to save up some dollars for shopping on 5th Avenue as well.
New York is an excellent place to go for a long weekend, but you’ll be better off staying for a week if you really want to get your money’s worth. When you compare the cost of a holiday here with a holiday in Europe, you might well decide it’s worth the trip across the pond after all.
There are two parts to your holiday – paying for the holiday booking itself and getting your money exchanged if you are going abroad.
If you are travelling to a part of Europe which uses the Euro, make sure you keep an eye on the exchange rates and try and catch them at their most favourable. It’s worth checking the news online for the latest stories regarding the currency world, since they will often give you a good indication of the way things are going to go in future days and weeks. While this is obviously not set in stone it can affect how much money you are able to get in exchange for your budget of pounds. A little knowledge can go a long way here.
Don’t settle for going to your nearest Bureau de Change either. You would be surprised how much the rates can differ in between branches, and the amount of commission you would get charged can also differ greatly too. Again, do some research online to see which provider offers the best deal – there is simply no point in giving away more of your money than you have to.
It also pays to check what you will be charged for using your credit or debit cards when you go abroad. It might seem like the easiest way to pay for things and it is safer than carrying large wads of cash around with you, but some banks are charging a huge amount for the privilege of using your card in a foreign country. You’ll often get a flat fee slapped on each transaction as well as being charged a percentage of the amount you’ve spent each time. All this can really add to the cost of a holiday. If necessary open a separate account before you go away that won’t hit you with these charges. Just remember to put adequate funds in it before you go if it relies on a debit card.
Another tip for booking a European holiday that won’t cost you the earth is to focus on those countries which haven’t opted to use the Euro yet. There aren’t that many left but some of them are enjoying a real boost in their tourist trade as many Brits in particular are deserting their usual destinations such as Spain and looking for somewhere else to go for the same money they used to spend there.
You never used to hear of too many people having a holiday in the Balkan countries, but thanks to the Euro that’s exactly where a lot of people are now headed. The smart money is on Bulgaria – it’s full of charm and delights and it is just about the cheapest place you could choose to visit in Europe at the moment. It might join the Euro at some future point but you should definitely enjoy its charms while it lasts.
More unlikely destinations such as Slovenia and Croatia are also gaining in popularity, and they are more geared up for holidaymakers now than they have ever been. And it doesn’t matter what kind of holiday you enjoy either – from skiing holidays to relaxing by the pool in the middle of summer, you can get it all in the Balkan countries, and it comes at a great price too.
You can also save a lot of money by checking what amenities and sights are available to see where you will be going. Some places allow entry for free, and you can also enjoy a day or two simply strolling around a town or village without spending a single Euro in the process.
Of course you may decide that you want to give Europe and indeed the rest of the world a miss this year, and stay at home instead. No matter where you go there are plenty of ways to get there – you can fly, take the train or go by car, and take advantage of some great deals at the same time.
The strength of the Euro means that a lot of people are likely to think more seriously about staying at home this year, which means it’s a good idea to book early if there is somewhere in particular you want to go. Many British companies offering holidays in this country are expecting to see an increase in business this year, which can only benefit the UK in the long run.
Lots of people don’t really consider a holiday in the UK to be a proper holiday, but these suggestions might just change your mind:
At first glance the continued strength of the Euro seems to have poured doom and gloom on European holiday this year as far as the British are concerned. But as we have seen it is still possible to visit Europe without it breaking the bank.
Here are some final tips to remind you of the things you need to consider when you are thinking about going away this year.
In short, a little common sense and research will go a long way this year when it comes to deciding where you are going to spend those all important two weeks away. So whether you decide to go somewhere that uses Euros, hop across the pond to America for the holiday you’ve always promised yourself, or simply stay at home and enjoy Britain at its best, you’ll have a much better time if you know you’ve got the best value deal you can get.