EUROPE’S $10 COKE
Facing sticker shock like a $10 Coke, American travelers are skipping pricey trips to Europe this summer as the greenback’s anemia worsens.
The dollar has continued to drift at record lows against most other currencies, causing restaurant tabs and shopping bills to soar – adding as much as 30 percent to the cost of a transAtlantic holiday compared with the same sojourn a year ago.
“Fortunately, travelers to Europe already paid for their airfare and hotels in dollars months ago before it fell so badly,” said travel analyst Terry Trippler. “But they’re in for a real shock when they buy their first Coke.”
Charge card bills also will show a whopping surcharge back home to make up differences in weak dollars spent aboard, he said.
U.S. travelers started backing off Western Europe’s destinations in spring bookings as the dollar began to swoon.
The drop is blamed on weak economic factors such as a growing glut of greenbacks, high federal debt and diminished U.S. production of goods to back up currency values.
The euro – used in 13 European nations including France, Italy, Germany and Spain – yesterday traded higher here at $1.3803, while the British pound steadied at $2.048. A Canadian dollar is now worth almost the same as its southern counterpart – just 4 cents lower.
American’s spring travel bookings to Western Europe, the most current available, are down about 3 percent, according to AAA’s travel service. Germany and Ireland took the biggest losses and are off 43 percent and 11 percent, respectively.
Surprisingly, though, many hard-core vacationers have been flocking to Eastern Europe where the dollar is still relatively strong, sending bookings there soaring 55 percent, said Mike Pina of AAA.
U.S. trips to Croatia are up 69 percent, while visits to Slovenia are up 100 percent, with Hungary up 76 percent. Romania is the biggest surprise – up a stunning 700 percent.
“It’s cheap and people want bragging rights for being the first to see Croatia or Romania or other off-the-beaten-path spots,” Pina said.