Best time for Americans to visit Europe due to currency
- Paul Aage Hegvik
- Jan 20
- 3 min read
Updated: Feb 26
American travelers are currently enjoying significant savings when visiting Europe, thanks to a strong U.S. dollar.
As of January 2025, the exchange rate stands at approximately $1.03 to €1.00, a notable improvement from $1.12 to €1.00 in September 2024. This favorable rate means that expenses such as accommodations, dining, and shopping are more affordable for Americans abroad.
24 dollars less for a room because of currency
For instance, a hotel room that previously cost $280 now costs around $256, allowing travelers to stretch their budgets further. This enhanced purchasing power extends beyond the Eurozone; countries like the United Kingdom and Canada also offer advantageous exchange rates, leading to potential savings in destinations like London and Toronto.
Travel trends and airline expansions
The strong dollar not only benefits individual travelers but also influences broader travel trends. Southwest Airlines, for example, is expanding its services to Europe through a partnership with Icelandair, enabling customers to fly to Iceland from the U.S. and then connect to other European destinations. Initially, flights will depart from Baltimore's BWI Airport, with Denver and Nashville expected to be added later. This expansion comes at a favorable time for American travelers, with the dollar nearly equal to the euro, offering significant savings.
Statistics show that Americans are taking advantage of this opportunity. A recent survey found that 67% of U.S. travelers are more likely to consider a trip to Europe in 2025 due to the stronger dollar. Additionally, bookings for European destinations by U.S.-based travel agencies have increased by 18% compared to the previous year.
Popular destinations for American travelers
Portugal is one of the standout destinations benefiting from the influx of American tourists. In November 2024, nearly 140,000 visitors from the United States were recorded, surpassing numbers from Spain and the UK. This influx contributed to over 1.1 million foreign visitors during the month, providing a significant boost to the local economy. Similarly, cities like Paris, Rome, and Barcelona are seeing a rise in American tourism, with museum admissions and guided tours reporting increased bookings.
Other statistics underline the financial advantages for American travelers. The average daily cost for a trip to Europe, including accommodations, food, and entertainment, has decreased by 12% for Americans since the exchange rate improvement. For example, a meal in a mid-range Parisian restaurant, which would have cost $50 last year, now costs closer to $45.
Economic and cultural impacts
While the strong dollar makes Europe more accessible for American tourists, it also has ripple effects on local economies. The surge in U.S. tourists is boosting European economies but also raising local costs and affecting housing markets. Some cities are grappling with over-tourism, leading to discussions about implementing stricter regulations to manage the influx.
Conversely, the U.S. is struggling to attract European tourists due to factors like safety concerns, visa restrictions, and a lack of a centralized national tourism strategy. This disparity highlights the importance of addressing barriers that prevent reciprocal tourism growth.
A golden opportunity for travel
In summary, the robust U.S. dollar presents an opportune moment for Americans to explore Europe cost-effectively. By taking advantage of favorable exchange rates and expanded flight options, travelers can enjoy enriched experiences abroad while contributing positively to the economies of their destinations. Whether it's strolling through the streets of Paris, exploring the historic sites of Rome, or enjoying the beaches of Portugal, 2025 offers unique opportunities for American tourists to make the most of their travels.
