International travelers from the US are apparently NOT looking to hit Europe this summer. This is largely due to the weak dollar and the poor exchange rate for US dollars into Euros. As of this article - $1 converted to just .6433 Euros - pretty dismal.

US Dollar to Euro Exchange Rate - 3 Month Trend

So where are people headed for an international destination? Look to areas where the dollar is still fairly strong, the Caribbean, Mexico and South America are experiencing fairly strong exchange rates. In Argentina for example - $1 converts to 3.1745 Argentine Pesos. Travelocity’s summer bookings to South America are up 13%, Mexico’s share is up 47%. For the most part, Mexico offers SOME of the amenities a European trip might offer, ambiance, cuisine, warmth, and beaches - at a much more reasonable price.

US Dollar to Argentine Peso Exchange rate - 1 Year Trend

How can US hospitality operators take advantage? Offer a guest who might have otherwise chosen an overseas trip some smokin’ deals - with the luxury and ambiance an international destination might afford. Partner with area nightclubs, restaurants, etc. to ensure guests are gaining an experience in their vacation, not just a “trip.”

Euro to US Dollar Exchange Rate - 3 month trend

The other opportunity here is that of the European travelers flocking to the US. Exchange rates into Euros aren’t very good, but flip the switch and turn 1 Euro into $1.5543 - this means a European vacation budget of €4000 converts into $6,218.60 - pretty good value. Check out my previous article “Weak Dollar Could Mean Strong European Bookings.”

For more details on the USAToday article - access the printable version here (no subscription needed)

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