The U.S. dollar has been surging in value, making now a potentially ideal time for Americans to consider traveling abroad. With the dollar stretching further in many countries, travel experts told that this could be a great opportunity to explore international destinations. The recent boost in the dollar’s value is attributed to the strong performance of the U.S. economy, which has outpaced expectations and global peers.
Leigh Rowan, founder of Savanti Travel, noted that this shift has made some dream destinations more affordable—and in some cases, cheaper than domestic options. “We’re seeing more people heading overseas for winter skiing,” Rowan said, adding that a family of four might spend $15,000 for a week in Aspen, while skiing in Switzerland’s Verbier could cost less, even with flights included.
According to Bank of America analysts, the dollar is expected to remain strong through the first half of 2025, though its trajectory could shift as the economy adapts to changes in tariffs, taxes, and immigration policies.
Recent data from TradingView shows the dollar has gained significantly against currencies in popular destinations, rising approximately 14% against the Mexican peso and about 6% against the British pound and euro over the past six months. Although gains against the Japanese yen and Vietnamese dong have been modest, the dollar remains historically strong.
Tips for Maximizing Value When Traveling Abroad
Travel experts emphasize that while exchange rates are important, travelers should also consider the costs of lodging, transportation, dining, and attractions. Using resources like Fodor’s Travel Guide or GuideGeek can help assess these expenses. Rowan added that travelers are likely to save the most on food, drinks, and experiences. Platforms like Viator and Context Travel can provide a clearer picture of local prices.
Amir Eylon, CEO of Longwoods International, suggested comparing costs for familiar international brands as a reference point. “For example, what’s the price of a McDonald’s meal abroad versus in the U.S.?” While few travel abroad to eat at McDonald’s, understanding such price differences can help gauge local affordability.
More Money-Saving Tips for International Travel
- Stay outside major tourist hubs. Rowan recommended staying in nearby towns rather than central hotspots, such as choosing a town near Portofino in the Italian Riviera to save money and avoid crowds.
- Plan your flights strategically. Frequent travelers may benefit from booking one-way tickets with rewards points and securing round-trip tickets starting abroad, which can be significantly cheaper than flights originating in the U.S.
- Check your banking options. Confirm whether your debit or credit cards charge foreign transaction fees. Notify your bank of your travel plans to avoid account freezes.
- Exchange money wisely. It’s often cheaper to withdraw local currency from ATMs at your destination rather than exchanging money in the U.S. Credit cards also offer competitive exchange rates, provided there are no added fees.
- Understand local payment practices. Tipping norms, taxes, and processing fees can vary. Eylon advised researching these differences and asking for a clear breakdown of your final bill to avoid surprises.
