Travel plans? Plan ahead for the weak dollar
In August 2003, I went on a graduation trip to the Dominican Republic. I was enjoying a carefree summer, living off of graduation gifts and looking forward to a new job in September.
When I arrived at the hotel in Puerta Plata, the first thing I saw at the front desk was a sign that said 1 USD = __ pesos. Someone had written in “35″ which I thought was kind of shady, but I appreciated the fact that the currency information was so readily available.
After climbing waterfalls, landing in the middle of a nightclub riot, and learning first hand why they tell you “don’t drink the water,” I was ready to head home. I started looking at souvenirs in the hotel gift shop. When I took a photo album up to the cashier, my $15 wasn’t enough. I asked why, she pointed at the sign next to the front desk: 1 USD = 33 pesos. I was shocked!
That 2 peso currency adjustment meant that somebody was getting a magnet instead of a photo album! The fact that my $15 wasn’t enough, literally overnight, was unsettling.
I have many students who are planning to study abroad in the coming months. For all who plan to travel, be sure to factor in the weak dollar for the duration of your trip. Getting to your destination will definitely be more expensive and so will eating, clubbing, taking tours, etc. once you arrive.
Ever been broke in another country? Been there, done that…not a good time!
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POSTED IN: Economy, News, Tidbits and Trivia
6 opinions for Travel plans? Plan ahead for the weak dollar
Dave Coraggio
May 24, 2008 at 3:08 pm
Although the dollar is become increasingly weak, I feel that our economy is on the brink of a turnaround in which the US dollar will strengthen. Studying abroad in Europe in the winter, I will definitely be affected by the weak dollar.
Andrea Varraux
May 24, 2008 at 3:35 pm
Great advice! This December, I am going on a graduation trip with my roommates to the Dominican Republic I will be going to Australia, New Zealand, and Hong Kong over the winter session, and then to Africa for the summer 09. I definitely need to budget in extra money and start saving now, especially since I will be traveling without my parents!
Diane Cerqueira
May 24, 2008 at 4:02 pm
I completely understand where you are coming from! I went to Australia and New Zealand over winter session and the exchange rate got worse and worse over the course of only five weeks. I hope it does not continue to get worse because I am hoping to travel to Europe after I graduate next spring and the dollar to Euro exchange is horrible.
James Lisa
May 25, 2008 at 11:19 am
I also traveled to the Dominican Republic this past spring break and felt the effects of the weak American dollar. One bag of chips and a gatorade was around 15 US dollars in the gift shop! I also was just in Australia/ New Zealand with Diane and saw how quickly the rates can drop.
Bigslim
May 26, 2008 at 9:43 pm
I was in both Argentina and Chile last summer. The Argentine peso is pegged to the dollar but the Chilean one isn’t. I think that the Argentines are rethinking that decision right now because they do much of their trade with Brasil, and Brasil’s currency is steadily strengthening.
Aubrey Wisler
May 27, 2008 at 12:17 pm
I saw this and had to comment! I have traveled several times in the past few years to Europe and it is shocking how the rate has changed so drastically over the past few years. You really have to be careful. You do not always realize how much you are spending. Not to mention the charges on top of that for taking money out of ATMs, using your credit cards, or exchanging money!
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