Compared to many foreign currencies, the dollar is currently strong, making it an ideal situation for Americans looking for deals and wishing to travel abroad.
Traveling when the dollar is strong means you can help support local economies while keeping your bank account in order. You may not see big savings on flights (unless you get a round-trip ticket) Cheap flight offer or book with points and miles), but you’ll be able to make the most of your money at the destination itself when it comes to accommodation, shopping excursions, restaurants and other activities.
If you’re still undecided about where to go next, destinations like Japan, Canada, Brazil and a couple more are worth considering if you’re looking to get more bang for your buck.
Japan
A record number of travelers visit Japan in 2024. According to the Japan National Tourism OrganizationIn March alone, the country welcomed 3.08 million foreign tourists, the first time Japan welcomed more than 3 million tourists in a single month.
What’s driving the surge in travel? The favorable exchange rate for American travelers likely plays a major role. The value of the yen has been falling for years. Earlier this year, it hit its lowest level since 1990, with an exchange rate of about 1.2 trillion yen. 160 yen to 1 dollarA few years ago, it took 100 yen to equal one dollar. The yen has strengthened a bit recently, with the current exchange rate around 142 yen per dollar, but that’s still a good deal compared to several years ago.
“Japan has been in fashion since last year. It has not stopped being a popular destination since it opened to tourists,” said Erika Richter, a spokeswoman for the American Society of Travel Advisors“There was a boom in Japan and it continues, especially now that the exchange rate of the US dollar against the yen is so favorable.”
Canada
A weaker dollar in our neighboring country makes shopping and traveling within Canada More affordable for American travelers. It’s a great deal for those who don’t want to travel far from home. The Canadian dollar weakened to a near nine-month low against its stronger U.S. counterpart, recently trading at C$1.36 per dollar.
If you’re looking for a way to save money on a trip to Canada, consider planning your trip well in advance with a travel advisor or tour company. If possible, make your purchase in Canadian dollars – it’s a great way to secure a lower price if you think exchange rates may rise in the months leading up to your trip.
“There’s a common misconception that things cost more when you book with a travel advisor. That’s not the case,” Richter said. “The price of what you’re buying is the same whether you book with them or not. You just get an enhanced level of expertise and have someone who can help you make decisions that will help you stay within your budget.”
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Related: Book cheap flights to Canada and surrounding areas with Aeroplan
Brazil
Brazil has long been considered an affordable destination for American travelers. Now, with the Brazilian real currently worth around 5.63 reais to the dollar, there are even more deals available. To put that into context, the exchange rate was about 2.21 reais to the dollar a decade ago.
from Brazil tourism board reports International tourism grew 10.4% in the first seven months of 2024 compared to the same period last year, with more than 4 million travelers visiting South America’s largest country. Those 4 million include more than 668,000 Americans who have traveled to the country this year, which is second only to Argentina with 1.8 million travelers. Overall spending by international tourists in Brazil is also significantly higher this year. Between January and July of this year, Foreign tourists spent 3.7 billion dollarswhich is 9.7% more than in the same period in 2023.
Considering the favorable exchange rate and the fact that Americans currently do not need a visa to travel to BrazilThis is an excellent time to book a trip to Brazil. The visa requirement is waived for American, Canadian and Australian tourists until April 10, 2025. Travelers can purchase applications for $80.90 per person through the country’s e-visa site. Avoiding the fee for that expense can mean significant savings for a family planning to visit the country before April 2025.
Other destinations to consider
Colombia
Richter also suggested Colombia as an ideal destination for American travelers who want to make the most of their dollar. The current exchange rate is 4,291 Colombian pesos to 1 dollar.
“Colombia is one of the destinations that we’re seeing that people really want to explore more,” he said.[It has] “There is a rich cultural heritage, friendly people and the US dollar goes a long way.”
Please note, however, that the U.S. State Department is currently recommends that travelers reconsider visiting certain areas of Colombia: do your research thoroughly to see what’s on your itinerary before finalizing your plans.
South Korea
South Korea It is another destination where the currency has weakened significantly. South Korean Won hit a 15-year low in the second quarter of 2024, depreciating to 1,371 won against $1.
South Korean cities such as Seoul and Busan offer many free and affordable activities. Visitors can explore historic and cultural sites such as museums and temples, as well as natural attractions located near the sea or in the mountains. The country also has an affordable public transportation system that makes getting around easy and inexpensive.
Airfare prices for domestic travel or to other nearby Asian countries can also be quite affordable when traveling with low-cost airlines such as Air Busan and Jeju Air.
Ways to maximize a favorable exchange rate
Ready to make the most of your money by traveling to an international destination that is currently affordable for U.S. travelers? Don’t forget to do these three things, too:
- Use a credit card with No foreign transaction feesCard issuers can add up to 3% fees to international credit card transactions. However, several cards, such as the Chase Sapphire Preferred® Cardhe Ink Business Preferred® Credit Cardand The Platinum Card® from American Express (see rates and fees), they offer no foreign transaction fees as a benefit, allowing you to keep more money in your pocket.
- Use a checking account with no foreign transaction fees when withdrawing cash from an ATM. While it’s often preferable to pay by credit card since you can earn travel rewards on your purchases, sometimes you’ll need cash abroad.
- Always pay in the local currency. Decline options for “dynamic currency conversion” When paying for purchases with a credit card or withdrawing cash from an ATM, it may seem like the merchant is making things easier for you by offering you the option to pay in dollars, but you’ll usually receive an unfavorable exchange rate for the convenience.
In summary
By watching markets and exchange rates, American travelers can anticipate which destinations will emerge as the next big deal and identify where their tourism dollars may be most needed.
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