Many people dream of traveling extensively in retirement. Europe tends to be a popular destination, in part because many countries are easily accessible to one another. Europe boasts a sophisticated railway system, allowing retirees (and travelers in general) to take a single flight and visit multiple countries. And when the dollar is strong, a European vacation could, in some cases, be more economical than traveling domestically, especially during peak seasons.
But that’s not the case today. The Wall Street Journal says that the dollar’s decline during the first half of the year against peer currencies was the steepest in more than half a century. And it so happens that the dollar is down 13% against the euro, making it harder for retirees to travel abroad.
If you’re a retiree who was hoping to take a European vacation this year, you may be running into issues with what you can afford. But that doesn’t mean you have to abandon your plans completely.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail.
Profit and prosper with the best of expert advice – straight to your e-mail.
Get off the beaten path
European hotspots like Italy, Spain, and France tend to be expensive even when the dollar is stronger. If you’re a retiree with a limited travel budget, given current circumstances, you may want to consider visiting less-traveled corners of Europe. Not only might your money go further, but you might benefit from there being fewer crowds.
Kendra Guild, VP of North America at Solos Holidays, a tour operator that arranges group tours for solo travelers with a particular focus on people 50 and over, says, “We’re definitely seeing how economic uncertainty is reshaping summer travel plans this year. People still want to get away, maybe more than ever, but there’s more hesitation around making big financial commitments.”
Guild says one way travelers are pivoting is sticking to their top destinations but taking shorter trips that are more affordable. If you’re willing to pack in a lot of sightseeing, shortening a trip means spending less on lodging and food while you’re abroad. That could produce considerable savings.
Guild also says travelers to Europe are now more open to new destinations.
“We’re also seeing a shift in destination demand,” she says. “There’s growing interest in more off-the-beaten-path regions like Umbria or Puglia in Italy, the Alsace region in France, lesser-known islands and the mainland in Greece, and the Baltics. These destinations offer incredible food, history, culture, and scenery — but at a slower pace, often with fewer crowds and a lower price tag.”
Guild says she’s also seeing a lot of interest in Albania.
“The country boasts diverse landscapes, from beautiful beaches along the Ionian and Adriatic Seas to the rugged mountains of the Albanian Alps. Its affordability makes it an approachable destination to enjoy the best of the Adriatic Sea at significantly lower prices than neighboring Greece.”
Get creative to find cheaper travel
It’s easy to get stuck on a specific vision for a European vacation. But with a weaker dollar, you may need to get creative, says Domenick D’Andrea, Co-Founder and Financial Advisor at DanDarah Wealth Management.
One thing he suggests is traveling at off-peak times during the year. That way, he says, “You may be able to get back on budget and still have your dream vacation.”
D’Andrea also suggests reassessing your lodging options. A hotel might seem optimal, but renting an Airbnb with a fully stocked kitchen could not only be cheaper on a nightly basis, but help you save money on food costs while you’re away.
Additionally, if you’re willing to do some research and get familiar with local public transportation, you may be able to save money by exploring different cities and attractions on your own rather than paying for a tour.
“There are many free excursions in Europe,” D’Andrea says. “You could also find local restaurants instead of the tourist traps.”
You may have more leeway than you think
A European getaway might seem undoable right now. And you may be inclined to put off your dream trip because of it.
You definitely don’t want to strain your finances or incur debt to take a big trip, D’Andrea says. But do remember that good health is never guaranteed. So instead of giving up on Europe, there may be a way to make things work.
“If you still want to have the trip that you have always planned for, and it is still over budget, I suggest sitting down with your financial advisor to see if you can move things around,” D’Andrea says. “This could mean that maybe next year you don’t travel, or you cut back on some other expenses.”
Also, D’Andrea says, don’t write off the option of boosting your income.
“Maybe get a part-time job to help make up the difference,” he says.
It’s hard to know when the dollar will regain its strength, and when Europe will become more affordable for U.S. travelers to visit. If you’re in good enough health to take the trip now, then it may be worth making other sacrifices to pull it off.
As D’Andrea says, “With proper planning, research, and working with the right professionals, you can find a way to make it work.”