Money-Saving European Travel Tips

Don't let a strong euro spoil your vacation plans!

ABOVE: In Paris, many bakeries sell tasty sandwiches and take-out lunches at reasonable prices.

If you're an American traveler, the badly-battered U.S. dollar may seem like a good reason to avoid Europe. And if you're British, the recent drop in the pound's value against the euro may feel like an economic kick in the trousers. But don't let currency fears ruin your holiday plans: By keeping things in perspective and adopting common-sense money-saving strategies, you can travel independently in the euro zone (even in the top tourist cities) without going broke.

First, some perspective:

In early summer, 2008, the euro was worth approximately US $1.60. By June, 2010, when this wrticle was last updated, the euro's exchange value had declined by 25 percent to US $1.20--its lowest level against the U.S. dollar in two years--and the British pound had dropped from $2.00 to $1.45. (For up-to-date exchange rates, use our currency converter.)

Some economic experts are predicting that the U.S. dollar will continue to gain at the expense of the euro and the British pound in the months ahead. But even at current rates, the dollar is stronger than it has been for quite a while. Middle-class Americans really can enjoy a European trip with a bit of planning and common sense. Ask a Canadian: People from Canada have visited Europe for years, despite a Canadian dollar that was far weaker than the U.S. dollar for most of the last three decades.

For British travelers, the situation may seem more alarming, because the pound began its fall only recently. On the brighter side, Continental Europe is far closer for UK residents than it is for Americans, Canadians, and other tourists from overseas. Look at it this way: If beleaguered American travelers are still visiting Europe after several years of a weak dollar--and despite transatlantic flights that cost far more than a Ryanair or EasyJet flight or a Eurostar ticket--then you shouldn't let a more expensive euro keep you from sampling the Continent's delights.

Second, the money-saving strategies:

Please continue to our first money-stretching tip on page 2.