Even with its consistent popularity, Europe is a bargain right now for U.S. travelers. This is because the Euro has weakened against the dollar, meaning trips in 2025 are more wallet friendly. Fifteen years ago, the exchange rate was around $1.50 USD for 1 Euro. Now it’s $1.03 USD for 1 Euro and may be moving lower. If Europe is on your list, now is a great time to lock in your trip! Here’s what you should know.
Which countries use the Euro? It’s important to note that not all countries in Europe use the Euro as their currency, for example the U.K. The 20 countries that use the Euro include Austria, Belgium, Croatia, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain. Traveling to these countries makes spending easy as well, as you can avoid currency exchanges once you’ve converted your dollars to Euros!
What’s driving the friendly exchange rate? There are a variety of factors causing this unique opportunity for travelers, including the relatively strong U.S. economy compared to Europe over the past couple years. The U.S. has outperformed economic forecasts, while Europe has not fared as well. Because of this, the dollar has more purchasing power in Europe compared to years in the past.
How long will this last? Economists forecast this friendly exchange rate to last through 2025 and potentially 2026, depending on a variety of factors. Many foresee the Euro continuing to decline in value and possibly even be less valuable than the dollar soon. One uncertainty is the potential for U.S. tariffs implemented in Europe. If this occurs, Europe may implement their own trade barriers which could result in higher prices. Once the incoming Trump administration takes office, we’ll have more clarity on the impact, if any, of this.
What should travelers do? If you’ve wanted to visit Europe, 2025 offers a great opportunity to do so at a better value due to the exchange rate. Locking in prices now can insulate against higher prices due to tariffs and other unknowns. Europe’s popularity also means that early booking results in more availability and the best options possible; we’ll walk you through the opportunities during the planning process.
Inflation has been a constant story in the travel industry with everything from hotels and airfare becoming more expensive. The lower exchange rate with the Euro is certainly something to note and celebrate as we enter 2025! To get started with your European getaway, call Denise today!
My goal is to simplify travel-planning through an equal exchange process where I acquire your ideas and expectations for your trip relieving you of the worry, hassle, stress and time that accompanies Do-It-Yourself planning.