By Richard Lee
Although not touted as a season for international travel, the winter months can provide a nice little getaway from the post holiday doldrums. Individuals weighed down by cold weather and the daily routine can find escape in other regions of the world. This way, they can find relaxation and a change of scenery. However, it comes with a price. Or does it? Taking into consideration the recent slide in some of the currencies available worldwide, current depreciations in global exchange rates can make previously expensive vacations a doable reality. Specifically, when one currency depreciates, another currency will strengthen and increase the traveler's purchasing power. As a result, destinations in countries like Japan, Canada and South Africa have become cheaper and subsequently more attractive. Conversely, exchange rate fluctuations have also increased the value of travel packages to regions like New Zealand and Thailand, making them relatively unattractive. The packages are made even more unfavorable when calculating the addition of higher airfares as a result of supported fuel prices. Ultimately, by taking advantage of recent currency market fluctuations, travelers can find more bang for their buck and get away from the everyday grind.
Dollar Strength Provides Deals Abound
Rising in the past couple of months, the US dollar has gained against several of the world's leading currencies. The recent strength has caused certain currencies to trade lower for the past six months, giving the greenback a considerable advantage in the world. Notably, the South African rand has declined by 4 percent from the middle of July last year to January of this year. Both Canadian dollars and Japanese yen have also fallen sharply, down 4 and 7 percent respectively against the US dollar. These recent declines mean more savings for travelers especially when you take into account the decline in the South African rand. The 4 percent decline is on top of the already 18 percent fall seen last year, totaling a savings of 22 percent. Let's take a look at how these and other savings translate into a profitable getaway.
Japan - Becoming a Value
Touted as one of the world's most expensive countries, Japan is a region rich in culture and history. However, the currency has taken a beating from the end of July 2006 till now. The currency had fallen 7 percent against the US dollar, the biggest loser among some of the world's major currencies. The vacation becomes even cheaper when considering the 4.8 percent decline in the summer months of 2006, totaling 11.8 percent for the last six to seven months. A negative for the economy, the recent depreciation can serve as a golden find for anyone looking to explore one of Asia's most powerful economies. Incidentally, the country is the world's second largest economy next only to the United States and exhibits the world's most expensive property values. Charging $1,271 a square foot, apartments in Tokyo are ranked as the world's most expensive, making hotel rooms equally expensive. Now, all thanks to currency fluctuations, a traveler can pay $1,190 for a 5 night travel package previously valued at $1,350.
Canada – Hotel Rooms Down by $270!
Considered the US's neighbor, and a major trade partner, the nation of Canada presents a great opportunity for vacationers desiring a quick trip. Located just north of the border, travelers are able to make shorter weekend trips, great for individuals on a time constraint. A victim of the recent currency depreciation, the Canadian dollar has declined by a total of 8 percent on the year since hitting a record high back in May last year. This makes visiting the country the cheapest in almost a year. The cost comparisons aren't even close when looking at hotel accommodations. Booking a standard room in the middle of New York at the W hotel in Times Square will cost a visitor $450. In Canada, the same room will cost $180, a savings of $270!!
South Africa – Packages for Capetown Dropping in Price
Still considered a bargain, trips to South Africa still reign at the top of the list on savings. Since the end of the summer, the local currency of South Africa has dropped an additional 4 percent. Added to the already 18 percent depreciation and total savings can be seen up to 22 percent on the currency fluctuation alone. Known for diverse wildlife and scenic beauty, a trip to South Africa offers the traveler adventure and exposure to a multitude of culture. Warmer climate is also a plus as the country is now in its summer while most of the Western Hemisphere is in the winter season. Now, taking a 3 day vacation package to the highly scenic Western Cape, Capetown would cost $404 at the beginning of last year. But when considering the currency drop, the package is reduced to $341. A low cost from the start, the package becomes even cheaper on the recent depreciation.
Thailand – A Heavier Cost
On the other hand, once a relatively cheap vacation choice, travelers will be disappointed to know that trips to Thailand have become costly over the past six months. Since the middle of last year, the Thai baht has gained against global currencies on speculation from large investors around the world. As a result, the price of a baht has risen by almost 9 percent against the US dollar since the end of July 2006. If we take the price back to the beginning of 2006, the appreciation tops out at 12 percent. Slightly more expensive than taxed goods in New York, the baht's strength adds to tour packages in the country, pushing them well above $1,000 for 2 nights. Ultimately, the increase in costs puts a higher price on attempts to take in Southeast Asia, leaving little money for the traveler to spend on souvenirs.
Exchange Rates Really Do Matter
Although exchange rates are predominantly not in the mainstream, they still need to be considered when planning a vacation abroad. Whether in nearby Canada or as far away as South Africa, bargains can be found. Following the currency markets and their fluctuations will only help in taking advantage of these opportunities. Moreover, bargains are expected to become even greater in the coming months as US dollar strength is expected to continue in the near term. As growth continues to be seen in the US, the currency will only become stronger. This will stretch its purchasing power and minimize costs to patients diagnosed with the winter blues.
