It’s the backpacker’s call to India, the sunseeker’s pull to Mexico, and the digital nomad’s urge to get to Thailand: Go where the dollar buys more.
The evergreen budget travel strategy is getting a boost this summer: The dollar has risen against a number of foreign currencies, including the Japanese yen, thanks to high interest rates offered by the Federal Reserve – attracting foreign investment, which strengthens the dollar.
“A destination’s weaker currency means more value for U.S. tourists,” said Erina Pindar, chief operating officer and managing partner at SmartFlyer, a global travel agency based in New York City.
“This economic advantage could make far-flung destinations in Asia such as Indonesia, Vietnam and Japan or in South America such as Peru, Argentina and Chile more accessible than ever before,” she added.
Distant destinations tend to be more expensive to fly to, which, along with the physical effects of jet lag, is an argument for the country’s North American neighbors Canada and Mexico, where exchange rates have long favored the dollar’s purchasing power.
But this year there are some new competitors with attractive exchange rates, including the following destinations.
Australia
Currently, the US dollar is worth about 1.50 Australian dollars, up about 16 percent over the past three years.
The hurdle, of course, is the long flight, which can easily cost over $1,000 round-trip. But travel search engine Kayak lists some attractive summer fares for round-trip flights between the West Coast and Sydney from $770, with best availability in August.
Getting around Australia by plane isn’t cheap either, especially since the recent collapse of budget airline Bonza. Jetstar offers cheaper fares, including recently offering $50 one-way tickets between Melbourne and Adelaide.
Motorhomes can be an affordable way to take a road trip around Australia. Companies like Jucy, Britz and Apollo offer vehicles that have beds and cooking facilities. Jucy recently priced a two-person van rented for a week in July at about $53 per night.
Summer in the Northern Hemisphere is Australia’s winter. If you’re planning a ski holiday in the Australian Alps, Tourism Australia recommends avoiding mid-July, when schools are on break and many families hit the slopes.
There is no culture of tipping in Australia, according to Craig Bradbery, chief operating officer of Baillie Lodges, which includes the newly remodeled Southern Ocean Lodge, a luxury property on Kangaroo Island. This could allow travelers to save 20 percent on restaurant meals.
Bali, Indonesia
Many destinations in Southeast Asia, including Thailand, Vietnam and Cambodia, offer attractive exchange rates. In Indonesia, the rupiah is at its lowest level in four years against the dollar.
“I would send clients to Bali, Indonesia,” said Rob Huie, owner of Millsboro, Del.-based Luxury Travel Services by Rob, noting that the cost of living on the island is low. “The downside is that flying there has a higher upfront cost, but once you’re there you can stay in three- and four-star hotels, meals for $10 to $25 a day, and massages at very affordable prices for $10 to $30.”
Travelers with Marriott loyalty points can redeem them at the Four Points by Sheraton Bali, Kuta (rooms from $57 per night). IGH Reward members can redeem or earn points at Hotel Indigo Bali Seminyak Beach (from $138).
Tripadvisor’s list of the best budget hotels in the central highlands around Ubud includes options under $100.
According to rental platform HomeToGo, Bali is a good place to look for vacation rentals. Its data shows that the average price per night for a rental property in Bali this summer is $86, compared to the average price of a rental in the United States of $388.
“Despite the strength of the U.S. dollar globally, prices in the states continue to rise, prompting travelers to look for international destinations where their dollar can stretch even further,” said Eleanor Moody, a travel expert at HomeToGo, who wrote this Searches added for rentals in Indonesia have more than doubled in the past year.
Colombia
South America – including Argentina, where inflation has skyrocketed, and Peru, where the sol has weakened against the dollar – is another place to look for value.
“Stop traveling to Europe,” said Cecile Blot, owner of travel agency Boundless Travels in Washington, D.C., praising “destination dupes” in South America. “Many countries on the southern continent offer the entire package – history, culture, nature, culinary delights, first-class accommodation – at a fraction of the price.”
One of these is Colombia, where the dollar was last around 3,935 pesos, up about 20 percent over the past five years.
“Colombia has something for everyone,” said Stefanie Pichonnat, owner of Terre Haute, Indiana-based AAV Travel, citing Cartagena in the Caribbean as a budget-friendly substitute for a European capital and the coastal Tayrona National Natural Park as a cheaper alternative to Costa Rica.
“Coffee lovers can spend days touring the coffee fincas, passionate hikers can challenge themselves with a hike into the Páramo Desert and bird watchers will find a wealth of opportunities to explore,” she added.
Air travel is frequent and affordable. A recent search of round-trip fares from the New York area found summer departures starting at about $290 to the capital, Bogotá, and $320 to coastal Cartagena.
From Bogotá, visitors can reach Chingaza National Park in the eastern Andes or spend a few days in the laid-back colonial town of Villa de Leyva. But Colombia’s mountainous terrain and dangerous roads often require a domestic flight to visit other areas.
Among the tour operators who will do the planning for you, England-based Responsible Travel offers a customizable 12-day trip to Colombia that visits Bogotá, Medellín and the central coffee country, including the lush Cocora Valley with its nearly 200-ft High Valley Wax Palms (from $2,990 per person).
Japan
The U.S. dollar is currently worth about 156 Japanese yen, up more than 11 percent compared to last year.
Demand for Japan was already booming as the economy improved. BWH Hotels, which includes Best Western Hotels, said occupancy and prices have increased steadily over the past two years due to demand and staff shortages, particularly in popular destinations such as Tokyo, Osaka, Kyoto and Hokkaido.
But with careful planning, Americans can still take advantage of the exchange rate. IHG Hotels & Resorts, which operates hotel brands in the country from the design-focused Voco to the high-end InterContinental, recommended traveling through early July for the best rates (a night at Voco Osaka Central starts at $135).
The Japanese-owned Hoshino Resorts tend to be upscale, but their OMO lineup offers more entry-level accommodations, from capsule hotels to full-service locations. The OMO5 Kyoto Gion, for example, offers rooms for up to six people and with kitchens starting at 24,000 yen, or about $153. Staff guides offer free tours of area temples.
While many temples, parks and shrines are free, travelers in the capital can purchase the Tokyo Museum Grutto Pass for 2,500 yen (about $16), which includes entry to more than 100 museums and attractions in the city.
Among its tips for budget travelers, the Japan Tourism Office recommends making lunch your main meal, as many restaurants offer lunch specials.
There are a number of cost-conscious ways to get around Japan, including trains (a Japan Rail Pass starts at 50,000 yen, or about $320 for seven days), budget airlines like Peach and Zipair, and overnight buses.
Or consider hiking the Kumano Kodo Pilgrimage Trail, which connects sacred shrines in the Kii Mountains. Walk Japan offers a self-guided seven-day trip including accommodation and most meals from 224,000 yen.
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2024-06-10 09:02:01
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