LITTLE ROCK — With gasoline prices soaring, this is not the best year to book a last-minute international flight. But if you’re lucky enough to score a cheap ticket to another continent, you might be surprised how far you can stretch a dollar. With global markets in perpetual flux, the euro crisis did a lot to help the U.S. dollar in cities across the world.
“We like to say you can find a deal when cities are overexposed, over the hill or over a barrel,” said Marc Peyser, editor of Budget Travel magazine. “In cases like Portugal or Greece, they’re over a barrel. But you have to decide if it’s worth the trade-offs.”
Those trade-offs include risks. But natural disasters, protest movements or bad publicity (think of the Costa Concordia’s effects on European cruises) can create cheap travel opportunities.
We talked to luxury and budget travel experts to get the scoop on how to make the dollar go far this year. You might be surprised which international cities you can visit on the cheap in 2012.
CURRENCY VALUES
The global recession hit some countries hard, and places that were once expensive are now prime destinations. Reykjavik, Iceland, appeals because of dramatic currency fluctuations. “Before the financial crises, you would get 67 kroner to the dollar. Now you get 123 to the dollar .... Your dollar goes much farther than it did before,” Peyser said. Jetsetter.com editor in chief Kate Maxwell says that “Poland and Romania are ... cheaper since they’re off the euro.”
So the euro exchange rate still hovers around $1.32 to 1 euro (much better than in 2008). But did the European debt crisis make all destinations cheaper? “The dollar goes further in some places, but not all,” Peyser said. “Ireland has a temporary reduction in value-added tax, encouraging people to come now. Spain, though, has raised its VAT since 2010, so it’s more expensive for tourists.” Greece is also a great option if you can get to a less-populated island. “There are shorter lines at tourist destinations, and lesser-known islands are running deals,” Maxwell said. “Avoid Santorini and Mykonos.” Also, consider countries loved for their bed-and-breakfast cultures. A room at an Irish inn is considerably cheaper (and negotiable!) in a time of financial hardship.
BAD PRESS AND RISK
There’s no polite way to say this: Nothing hurts a travel industry like accidents or high-profile tragedies. After the Costa Concordia sinking, Jetsetter says its phones have been ringing off the hook with cruise companies wanting to do flash sales. “Demand for cruises has dropped 20 percent .... It’s a good time to get a deal on a cruise,” Maxwell said. Japan’s tourism is still recovering from the 2011 tsunami. “It’s not cheap to visit Tokyo, but for Americans,it’s much cheaper now than it was before,” Peyser said.
There are dangerous countries, and there are their neighbors. American travelers often disregard places that have a history of crime, poverty or war. Avoid the countries on the State Department’s travel warning list, but traveling to neighboring countries will help you find a deal, Peyser and Maxwell advise. For example, although much of Northern Africa is still unsafe to visit after uprisings, Morocco has always been a tourist destination. And surprisingly, Tunisia and Egypt are off the advisory list. Now might be the best time to visit Carthaginian ruins or take that Bedouin tour.
COMMON PITFALLS
A vacation is a vacation. You might save a few hundred bucks heading to Bratislava instead of Vienna (the two closest capitals in the world), but you’ve gone sofar already and paid for that international flight. Don’t visit a city you have no interest in. A deal gotten simply for the deal’s sake probably won’t be.
Just because the U.S. dollar gets you 1.8 Brazilian real doesn’t mean Rio de Janeiro is cheap. (It’s not.) Many of the must-see hot spots indeveloping countries aren’t any cheaper than New York. “Brazil is one of the biggest travel stories because of the Olympics and World Cup. You have to stay slightly off the beaten path to find a deal there,” Maxwell said. In contrast, Peyser thinks London will have deals after the Olympics. “The dollar is pretty strong against the pound at the moment, and a lot of capacity will go unused.”
Avoid rural retreats or proceed with caution. Colombia is home to Cartagena, and Mexico has Tulum. These hot spots are expensive, and the surrounding areas are cheap - and dangerous. Don’t save a few dollars in these areas by sacrificing your safety. Always check the State Department travel warning list, and register online with the Smart Traveler Enrollment Program, which informs embassies abroad ofyour trip.
The bottom line: Now is the time to stretch your dollar. With favorable exchange rates and global protests accompanying volatile markets, there are cheap travel opportunities and short lines at some of the most famous sites in the world. (Pyramids or Acropolis, anyone?) But a favorable exchange rate doesn’t mean cheap. Check out all costs before booking an overnight flight.
Travel, Pages 48 on 03/25/2012