How to afford Europe this summer
A travel expert tells how to get around the dollar’s douleurs

Interview by Patrick Totty

New York City-based travel expert Christophe Buszkiewicz, who’s been working in the cultural and luxury segments of the travel industry since 1987, has watched closely as the euro has overtaken the U.S. dollar in strength. The Cultured Traveler (TCT) asked him if, despite the dollar’s current weakness, American travelers might still include Europe in their travel plans this summer. Here is what he told us:  

TCT: Just how bad is the dollar’s decline against the euro and where do you see it going?

Christophe: The last six months have been the most difficult for the dollar. In January, it hit all all-time low in relation to the euro. I can’t imagine, though, that it will go much lower. There are advantages and disadvantages for both sides when currencies are weaker or stronger in relation to one another. A strong euro makes it harder for the Europeans to export, and it leads to loss of tourists and investment. For Americans, a weaker dollar makes it harder to travel, but it also encourages European investment in the U.S. Eventually these things balance out – there will be a turnaround at some point.

TCT: Until that turnaround, which could be months away, what can U.S. travelers do to stretch their dollars to the point that a European vacation becomes feasible?

Christophe: As long as the euro is strong, I’d advise American travelers to do the following:

Do less independent traveling where you are purchasing the individual components such as hotel rooms locally, thus paying in euros converted to US dollars. Only the ultra-affluent can afford the cost of at-will travel. That means looking at buying land packages that include some/most meals, or cruises which are the ultimate all-inclusive holiday. That way you are paying in US dollars ahead of time for the bulk of your holiday, and less hindered by a poor exchange rate. 

Another advantage is that tour operators and cruise lines have long established contracted rates in US dollars. In addition, certain European hotels are establishing attractive US dollar rates, or utilizing a more favorable exchange rate between the US dollar and the euro, in order to entice American travelers. After all, there are a lot of staterooms and hotel rooms to fill, so it's better to fill them at a discounted rate then not fill them at all.

Also, look for other specials that may come attached to some packages, such as reduced or even free air travel. Be willing to stay at properties that might be one step down from what you usually book.

Besides looking for packages, go on the internet and do your research so that you have a general idea of prices and range of possibilities. Then contact a travel agent who is a member of a good consortium, such as Virtuoso, who will also be happy to recommend a specific agent or agency that is an expert in your specific travel destination.

TCT: Virtuoso? What is that?  

Christophe: Our parent agency, Pisa Brothers Travel Service is a member of this 50-year-old worldwide consortium of luxury travel suppliers, and I am an accredited member. Less than 1% of all U.S. agents belong to it. Members are agents whose breadth of knowledge and extensive contacts allows them to open doors at the world’s top hotels, spas, resorts and tour operators. They not only have first-hand knowledge of their areas of expertise (mine are France, Italy, Brazil, the South Pacific and Hawaii), they’re networked with other experts and capable of planning totally independent tours.  

That leads to the other essential part of doing your research: Go to a good travel agent. Agents have the one thing that the Internet doesn’t have, and that’s personal contacts with suppliers. Those suppliers visit agents like us regularly trying to get business referred to them, so we know when they’re in the market to make deals. We can ask them to guarantee rates in U.S. dollars, a very reassuring thing for us to be able to pass on to our clients.  

TCT: How specifically can an agent outperform a diligent and savvy Internet user?  

Christophe: Here’s a great example: I recently looked into booking three nights in March at London’s Capital Hotel, a five-star property. On Hotels.com, the cheapest rate I could find was $398 per night for a standard room. Virtuoso, with its connections, offered a $444-per-night rate that included various amenities and a space-available upgrade to a deluxe room.

Then I tried Crown International, which represents The Capital and with whom we have a relationship. I found a three-night $999 package that included a superior room with breakfasts and transfers to and from Heathrow Airport. I went back and tacked on breakfast and transfer fees to the Hotels.com package and arrived at a $1,568 cost, vs. Crown International’s $999 cost. Now, there’s no way consumers could know about the Crown rate unless they go through a knowledgeable agent.

The upshot is this: How do you know which packages to book? Nobody expects a consumer to have the breadth of experience or knowledge to answer that. That’s why you go to an agent, and that’s why the fees people pay agents for their time and expertise is worth spending. Online research is fine, but in the end, you should go to an agent to get the best value for your money, the best protection against dollar/euro fluctuations and a package that comes a close as possible to your ideal.

TCT: But what about people living in the Idaho panhandle or western Nebraska? How do they find an agent who can do all that?

Christophe: I have many clients who’ve never seen New York City and don’t need to be anywhere near here to deal with me. The point is that you can access a good agent from anywhere. Living in a remote part of the country is no drawback with modern technology – you can call or contact an agent from anywhere, and most agents will tell you that they have clients living in all parts of the country. As for finding a good agent, probably the best way is still old-fashioned word of mouth. You ask friends who have traveled, “Can you recommend a good agent?” The ones who have had good experiences will be happy to give you the contact.  

TCT: OK, a diligent reader does all he or she can to finagle a trip to Europe but realizes there just isn’t going to be enough money to swing it. Where would you advise that person to go?  

Christophe: If you want a European experience, I’d recommend going to Argentina, where the dollar has exceptional strength. Buenos Aires is a beautiful, very European city, with wide Parisian-style boulevards and great culture. You can stay at luxury hotels there for bargain-basement prices, then later head out to Patagonia, and the Andes and Argentina’s other spectacular nature areas.  

Asia is a good destination, too. The regional economy is tied to the U.S. dollar, which is still relatively strong there, and the travel industry is discounting prices to overcome the drop in tourism from concerns about SARS – which is no longer the threat it was in 2003. River cruises and barging in China are especially affordable now, and even the best hotels in Hong Kong and Singapore are offering good deals.  

Australia is great because there’s no language barrier and the people live up to their reputation as sweet, friendly folks. The Australians are eager to become a primary destination for Americans who would otherwise go to Europe or Asia.

TCT: So, what’s the bottom line about travel to Europe?

Christophe: Europe right now isn’t the best place to go unless you’re on a cruise. One European river cruise company, Peter Deilmann, hasn’t raised its prices in two years and quotes trips in dollars. Silver Seas and Radisson are discounting up to 40% o 50% on their Mediterranean cruises. They’re willing to do this for the reasons I mentioned above – they need to sell off their excess capacity and to keep the American traveler market thinking about them. If you can find a cruise like the ones I’ve just described, I’d say go. Otherwise, be prepared to pay a lot.

TCT: Any final pieces of advice?

Christophe: Yes: When you travel, use credit cards and ATMs to get the best exchange rates. If you can, study foreign currencies and buy them when their price against the dollar drops. There’s no magic involved here – it’s safe to say that if you’re noticing that a currency’s price has just dropped to its lowest level in five or 10 years that it’s pretty safe to buy it.

More Editorials