Exploiting the strength of USD for the American Traveler
This started when I noticed how expensive some things were, especially over spring break. I also was noticing a number of great prices, here and there and I started looking as how to lay them out. The answer here is EXCHANGE rates.
Frankly, I have been floored at some prices I’ve seen and exchange rate seems to be playing pretty hard here.
I’d like to share here.
Here are some numbers I priced now and October of 2020, this is the amount that $1000.00 USD works out to in Local Currency. I give some examples of why, I think, this leads to great deals.
The first column is the currency.
The Second column how much of that local currency $1000.00 USD is equal to (or was on 20th of October)
The Third column is how much of that currency $1000.00 USD would have purchased 2 years ago.
The last column expressed this change as a discount. This is something from 2 years ago, but frankly the dollar was still fairly strong 2 years ago. What is a 29% savings in Japan now is 46% savings compared to Japan at the worst exchange rate (for American tourists). The South African rand may only be 9% less now, but it’s 50% less when it’s exchange rate was most extreme. Argentina… is nearly 60% less than it was 10 years ago (when I was there, btw)
Mexico and Brazil are two countries that actually gained strength against the dollar and below the image. I have more below the image and at the bottom, some quick examples of what led me to do this. It’s good, because in places like Thailand and Vietnam, the exchange rate was already amazing and while it’s better now, there is still better value in South East Asia than nearly anywhere else.
I also checked what the amount would have been at the worst time (for the traveler) in the past 10 years, but I had to do the math myself there, so those figures are less reliable. Which is why I didn’t post those. I do mention those below.
Some standouts and examples… With the two most startling ones at the top of the list and they are two of my favorite countries.
Argentina
October 2020 USD$1000.00 was ARG$82,500
Today USD$1000.00 is ARG$159,000 This is at least part of the reason that the Four Seasons New York is running $1200USD for the beginning of winter and the Four Seasons in Buenos aires is running $816USD per night for the beginning of summer. Both dates are of course, in November, but Southern Hemisphere y’all! I had a look at my favorite boutique in the Palermo district. $209 a night!!! That is officially the lowest price I’ve ever seen. With the exchange rate being nearly half of what it was and more than half of what it was when I went there on my honeymoon. It’s not surprising!
Japan
October 2020 USD$1000.00 would’ve brought in JPY ¥105500
Today USD 10000 = JPY ¥148800! Folks that is 29% lower rate and that is 46% lower than the exchange rate in October of 2012! This means that the Green Japan rail pass (that’s the good one) is only $472 for two weeks.
I can tell you that I have seemnthat pass be nearly twice that price in the past! Tokyo is still Tokyo the Four Seasons is just $662, which is a bargain (also that’s the older one at Otemachi, the new Marunochi is more) For Bargain hunters (like me last time I was there and couldn’t get an agent rate) The Hotel Sunroute Plaza near Shinjuku with super easy airport access. $92 a night for a single! WOW! For what they are, both of those are sensational rates!
Here are some things I researched that led me to look at the currencies on a bigger scale.
First of all, One of the reasons Mexico is higher because it is one of the few countries that has a better (for Mexico, bad for tourists) exchange rate now than 2 year ago when $1000 bought you 21177 pesos compared to now when it buys you 19992 Peso. So, that’s part of the mystery on why Mexico is pricing higher now. I also noticed this higher pricing with Luxury hotels all over which have to pay more for good service and in certain destinations aimed at leisure travelers.
What really triggered me to notice that some places are very well priced, was looking in Asia and in Argentina. (some examples at the bottom)
The Euro is 16% lower October 2020 and is nearly 30% lower than it was in May of 2014.
The Pound is 12% lower than 2 years ago and 32% lower than it was at its highest (To USD)
Australian Dollar 11%now and 40% to its highest exchange rate about 10 years ago and NZD! 15% lower than 2 years ago and 37% lower than its worst exchange rate (at about the same time the dollar was doing poorly for Australian exchanges).
The South African (Safari?) is about 8% lower than 2 years ago, but fully 51% lower than it’s highest point.
Since I did South Africa. Kenya is 8% lower than 2 years ago and 38% lower than it got in 2013.
Botswana is 14% lower than 2 years ago and 42% lower than it was at it’s highest 10 years ago.
Also in South America, while the Chilean Peso is 16% lower than it was 2 years ago (and nearly half what it was at it’s lowest point) the Brazilian Real is like Mexico and actually has improved against the dollar to the tune of 6%. I also forgot to look at Peru and Ecuador… shoot. Oh well, next time.
Asia was really good and the exchange rate has always been awesome for Westerners.
The Thai baht is 18% lower, the Vietnamese Dong is 5% lower, the Indian rupee is 10% lower, the Nepalese rupee is 11% lower, the Indonesia Rupiah is 5 % lower and not much movement on Malaysian Ringitts. To give some reference there, one of my favorite hotels is Vietnam is the Anantara Quy Nohn is running $500 a night for an OceanFront Villa the Anantara Dhighu in the Maldives (not much movement there also) is running $1325 s night for one of their villas. And where I stayed on my last trip (again, no agent rates) the decent Au Lac Charner was $65 a night and that included the afternoon tea on the roof. Bangkok, remember the rate at the Four Seasons in New York and Buenos Aires? $448 a night y’all! And frankly, that may be the best FS of the ones I’ve mentioned here and that’s the truth. There are number of places in Bangkok that are around $100 a night that I would’t mind at all. The Six Senses in Samui, $347 a night. Compare that to the Six Senses in Ibiza $763 a night. And guys, it is WAY nicer in late November in the Gulf of Thailand than it is in the Mediterranean!
