Anybody who is more knowledgeable about finance and exchange rates than me, what do you think

[raccoon]

about this? I just got this email from a travel company I'm always getting emails from....

"Dear Ms. XXXXXXXX,

I've just returned from Europe, where I experienced the weak US dollar firsthand. I'm still not quite over the fact that a room-service breakfast for two (eggs, bacon, toast, fruit, coffee) on our first morning in Paris cost US $120!

While many are hesitant to travel to Europe this year, there are affordable alternatives for those who want to explore the culture and history of an intriguing, faraway land. According to XXXXXXX Travel, which specializes in value-priced trips to worldwide destinations, Egypt and Peru remain relatively inexpensive and are gaining in popularity with North American travelers."

(snip)


Do you agree with them about Egypt and Peru being much less expensive than Western Europe?

[AngryAmish]

1. yup

[AngryAmish]

2. call me Dupey McDupelstein

[northzax]

3. that must have been a hell of a breakfast

40 euros a head for breakfast? Where were they staying, the Ritz?

[TechBear_Seattle]

4. Yes

The core issue is the exchange rate between the US dollar and the Euro. Other currencies such as the Egyptian pound and the nuevo sol of Peru have a rate that is more favorable for Americans. Also, keep in mind that western Europe has a high standard of living, which translates into a high cost of living. Third world countries have a lower standard of living and thus generally cost less.

If you want to travel to Europe, many eastern European countries are worth a look. Hungary, Poland and the Czech Republic were very important areas in medieval Europe, and many of the towns are better preserved than their equivalents in England, France or Germany. Their currencies and cost of living make them attractive although you might have trouble if your only language is English. Central and South America and southeast Asia are worth a look too.

[Gman]

5. That's very consistent with what friends and family who have

recently traveled in Europe have told me.

[mmonk]

6. The transition to a third world country status

in order to apply the shock doctrine presents such troubles for Americans.

[sinkingfeeling]

7. Peru was less expensive than Europe last fall. However, do not expect things to be cheap there.

A meal for 3 last October ran about 80 soles, with an exchange rate of almost 2.5 soles per US dollar. The hotels we stayed at in Lima, Cuzco, and near Manchu Picchu ran between $260 and $370 a night. Buying Peruvian crafts is best done at local markets. There are taxes to be paid on all flights within the country.

Also, the farmers of Peru and the major unions are blocking highways and protesting their government's caving into the USA on trade.

[Oregone]

8. Kabul is cheap and affordable this time of year...

Some travel companies actually give you a signing bonus to visit there.

[raccoon]

9. I don't think so. nt

[Oregone]

11. Whatever...

Beautiful poppy flower landscapes and freedom flower bouquets are yours to miss.

Exchange rate is great too....1 DU .223 round for 1 slave child. Can't beat that.

[karynnj]

10. Of course they are cheaper and have been for decades

The point of the email is to give an idea of how France could be out of the budget for people who previously could afford it. Now, I'm sure that $120 for breakfast for two is not the best you can do in Paris. First of all it is room service, second it is likely a classy hotel. I'm not sure if your interest is that you want to go to Paris - or economics.

If the former:
A better measure would be to look at hotel prices - and they are far higher than NYC's from what I can see on the web. If you are set on going to France - check the hotel prices and the cost of going to things you want.

As to eating - there is a real easy way to keep it cheaper. Years and years ago, my husband and I followed the advise someone gave me on Usenet (the early internet) about travleing with kids. Whichever grown up woke of first when out with at least one kid and bought pastry/bread at a bakery and then fruit, milk, coffee and cheese at a small grogery store - we also bought stuff for lunch and packed it immediately, putting the cold stuff in a foldable insulated bag that (at his advice we brought with us) - as he had said there are places everywhere in Paris, not far out of the way to have picnics. Our concern was more successfully traveling with a 4, 6, and 9 year old - but it did make the food cost MUCH lower than otherwise.

If the latter:
It is true that it is much more expensive for Americans in Europe now than say 5 years ago. You can prove this by comparing how much in dollars a given price in euros is. Lets say that something cost 100 euros. On July 9, 2003, this would cost $113.11, now it would be $157.44. Back on July 8, 2000, it would have been $94.84. (Note - this is just due to the relative value in currency and has nothing to do with inflation) This is a HUGE shift and it has made Europe a very expensive vacation.
http://www.x-rates.com/calculator.html - nice calculator that lets you put in date and two currencies to get the convergion.

What that email is doing is attempting to interest people in locations they might never have thought of before because they might be cheaper when everything is totalled.