Travelers can stretch dollars despite a strong euro

You don't need to trade Rome for Rochester just because the dollar is weak: Follow these tips to save across the pond.

By Kerri Westenberg, Star Tribune

Last update: July 20, 2007 - 6:49 PM

Travel to Europe is going strong. Too bad the dollar isn't.

Recently the euro hit its highest mark, at $1.38, and it has hovered near there ever since. That means the dollar doesn't buy as much as it once did in the 13 nations that use the euro, not to mention other countries across the pond such as Sweden and England.

Still, Americans are heading over in near-record numbers. According to the European Travel Commission, the number of U.S. visitors is on track to reach or exceed the 2000 record, when 13.12 million Americans traveled to Europe. Airlines in the United States have recently added European routes. European tours and cruises are up at AAA Minneapolis, and CarlsonWagonlit agents in the area have seen steady interest in European destinations.

That means a lot of dollars spent in Europe. Savvy travelers, though, can return with a few still in their pockets by following these tips.

Consider a tour or cruise. "With tours and cruises, leisure travelers prepay in dollars and lock in a price," AAA spokeswoman Dawn Duffy said. Beyond the prepay perk, tours can offer unique bargains because operators negotiate favorable rates at hotels.

Adjust your thinking if your idea of a tour includes a five-minute stop at the Louvre before reboarding the bus. "Some tours are more organized, but some offer lots of free time and include just hotels, breakfast, transportation between cities and a half -day introductory tour of each city," said Sandra Lovick, owner of five CarlsonWagonlit travel offices in the metro area.

Cruises are booming, and for good reason, Lovick added. You don't have to drive, you can see lots of cities and all meals are included. River cruises include stops at wonderful small towns visitors might otherwise miss.

Rethink where you travel and stay. Tom Meyers, founder of www.eurocheapo.com, a website dedicated to budget hotels in Europe, says going to less popular destinations, such as Eastern Europe or small cities, can save big money.

"I can't stop talking about Lisbon," said Meyers. It is a great sunny outdoor spot that far beats more expensive Barcelona in his estimation. Florence, he added, has more affordable hotels than Rome or Venice.

And about that hotel: Consider losing a star. According to Meyers, "One way to lower your budget is to stay in a family-run hotel or guest house, where you might be sharing a bathroom or might not have a television. Do you really need one when you're in Rome?" Family-run operations often give travelers a more authentic sense of place and, ultimately, a more memorable experience.

"There is a banality to four-star hotels and being tended to on all levels," said Meyers. "There is a standardization that is necessary at high star rankings."

Plan ahead. Now that the euro is trading for more than $1, you need to do some math ahead of your departure. Know what your budget is and plan accordingly. Check out websites such as www.tripadvisor.com and www.wheretostay.com for user recommendations to help ensure your savings don't come with bed or stomach bugs.

Buy a guidebook, urged Meyers. They'll help you know when museums don't charge an entrance fee and which parks offer the best free people-watching.

Reach for the plastic. Avoid exchange booths at airports and in tourist hubs that charge hefty fees. Instead, get out a card.

U.S. banks often offer the best exchange rates for customers that use their ATM or credit cards. But be sure to talk to the bank before you depart. You'll need to be sure the cards will work in your destination, and you'll want to know what fees the bank will charge. Also, some banks block card use in foreign countries to protect against fraud, so tell the bank about your travel plans.

Kerri Westenberg • 612-673-4282 • kwestenberg@startribune.com