Scary Mexico City
Lots of factors are in play that make right now a good time to travel. I’ve been writing this Cheapest Destinations blog since 2003 and there have been times when the travel conditions have been less than ideal. Then a nice window opens up and the people who could take advantage of it reaped the rewards. I’ve been through plenty of these cycles—including the times in the 1990s when I took three trips around the globe—and this year the conditions are about as good as they get.
1) The U.S. dollar is in decent shape
I didn’t say great shape, but with the euro edging close to $1.30 and the British pound at around $1.50, Europe is about 20% cheaper than it has been in many past periods and the countries with a currency tied to the euro are cheaper. Currencies don’t move in lockstep, however, so you’re still going to get hosed in Japan, Australia, and Brazil. Go to The World’s Cheapest Destinations though and those cheap bungalows will just be a wee bit cheaper than they were two years ago—prices in those locations tend to stay more stable.
2) The job market sucks
Trying to get a job, jump ship to a better job, or bargain for a raise is no fun at all when unemployment is hovering around 10%. So you can deal with that in two ways. What most people choose to do is keep slaving away at a job they don’t like or get booted and spend six months swimming against the current trying to find a good job in a terrible market. That’s exhausting and demoralizing. Go travel for awhile, which lowers your expenses considerably if you do it right, and come back when a rising tide is lifting all boats. You’ll be happier and wiser and the job search will be much easier.
3) Hotels are experiencing record low occupancy
Places where business travelers and vacationers stay are literally half full across much of the world right now. Some hostels and guesthouses do better because backpackers are less economically sensitive, but it’s still a buyer’s market outside of summer in Europe and holiday times elsewhere. Very few countries are seeing a booming tourism business right now, especially compared to two or three years ago. It’s “Let’s Make a Deal” time if you’re a diligent and patient deal-finder or bargainer.
4) There’s a lid on airfares
Fuel costs are still relatively high in historic terms (though this price is probably the new normal), but a lackluster enthusiasm for the cost and hassles of flying means that airlines have only so much power to raise prices. They’ve tried to counter by adding more gotcha fees, but that just makes more people fed up. Too many consumers are saying, “never mind” for the airlines to be able to sell more tickets. It’s hard to find a screaming bargain on a flight all the way to Asia, but short-haul flights—including to Mexico and Central America and within Asia or Europe—are about as low as they can go. Wait until the recession is over (or the other airlines figure out why Southwest is the only one making a profit while still making fliers happy) and you’ll pay far more.
Scary Thailand
5) Tourists are avoiding popular travel destinations
Three of the most popular vacation destinations in the world are in the news every day right now: Greece, Thailand, and Mexico. The cable news networks love nothing better than violence and riots, so you can expect them to keep the footage rolling and scaring off anyone planning to visit. Savvy travelers who do their homework know there’s nothing to fear just a few inches away on the map—like in Crete, Sukothai, or San Miguel de Allende—and they dive in when everyone else is leaving. Big scores await in discounted rooms, empty trinket shops, and tour companies ready to wheel and deal. (Also consider places that haven’t recovered from old bad news, like Honduras.)
If you need some inspiration or a kick in the pants, here are some good books on long-term travel abroad.
Scary Honduras
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