Tag: exchange rates

Cat Links VACATION

Are Vacations In Mexico Getting Pricier For American Tourists?

Posted on Thomas B. Stewart
Cancun Mexico strip at sunset - Mexico security measures increasing

Cancun Mexico strip at sunset – Mexico security measures increasing

As Americans plan their summer getaways to Mexico, they should brace themselves for potentially higher expenses compared to previous seasons, primarily due to the strengthening Mexican Peso against the U.S. Dollar.

In the same period last year, it took around 20.50 Mexican Pesos to purchase one American dollar. However, in recent months, the exchange rate has shifted, with one dollar now being equivalent to about 17 pesos. This three-peso reduction diminishes the purchasing power of the U.S. Dollar in Mexico, resulting in increased costs for typical tourist purchases.

The average taxi journey from Cancun airport to downtown Cancun costs $1,400 pesos, which has increased to $82 using the new improved rate. A cocktail in a club in downtown Mexico City costs around 185 pesos, or $10.73, while a luxury hotel stay averages $217 per night due to the skyrocketing peso value.

The value of the dollar in Mexico has dropped below its long-term average of 20 pesos, a minor difference that can significantly impact discretionary funds. Travelers considering a trip to Mexico might save money by waiting for a more favorable exchange rate if their schedule allows for flexibility.

Due to limitations on the amount of cash that can be brought across the border, many tourists rely on credit cards during their visit. However, it is crucial for Americans visiting Mexico to be aware of the various exchange rates they may encounter while dining or paying for other vacation expenses.

Credit Card Fees

When settling the bill, tourists face three different exchange rates. Opting for the wrong one can result in more expensive costs. The first-rate is the cash-to-dollars rate offered by the establishment, which often tends to be the least favorable. If travelers have obtained a favorable exchange rate

… Read the rest
Cat Links VACATION

Europe as a Budget-Friendly Travel Option? It’s True in 2022 | Travel

Posted on Thomas B. Stewart

Flying to Europe this year might sound as absurd as opting for premium gasoline. With prices this high, is it really the right time to splurge?

“As a result of labor shortages and all these things going on, travel is more expensive than it’s been in a while,“ says travel journalist Oneika Raymond. “Flights are really expensive. Accommodation is really expensive. And revenge travel is a thing.”

Although travel prices continue to soar overall due to constrained supply and mounting demand, pockets of affordability remain.

Europe represents one of these pockets, where weakening currency exchange rates against the dollar and tepid demand have left prices relatively unscathed. In fact, flights within the U.S. have become so expensive this year that some international destinations, including many in Europe, offer a relative bargain.

People are also reading…

“If you are willing to pay to fly domestically, check out international destinations,” suggests Hayley Berg, lead economist at Hopper, a travel booking app. “Because there is a good chance that there is a flight to somewhere else in the world for about the same price.”

Airfare is less inflated in Europe

Domestic airfare was 30% higher at the end of May 2022 compared with May 2019, according to data from Hopper.

“Airfare this summer within the U.S. will cost $600 to $800,” says Berg. “At those prices you can get to Reykjavik, Iceland, or Dublin, Ireland.”

Indeed, flights from the U.S. to Europe were only up 13% at the end of May 2022 compared with the same period in 2019, according to Hopper. That trend squares with tourist demand, which remains below pre-pandemic levels: About 19% fewer U.S. travelers left for Europe in May 2022 compared with May 2019, before the pandemic, according to data from the International Trade Administration.

Put

… Read the rest