[Idyllchat] Italy '08

[Bob Bestor]

I agree, it's bad, but not all travel expenses 
increase with the euro. Airfares, a major expense 
of any European trip, were down slightly in '07 
vs. '06. Due to the "open skies" agreement, some 
airline gurus say prices could drop slightly 
again in '08. Car rentals in '07 rose about 6.5%. 
Rail passes, depending on the country, were up 
from 3 to 8%. What arrangement Untours has with 
its landlords I can only guess at, but no doubt 
they are paid in euros so their prices will 
reflect whatever increase has taken place plus 
perhaps some sort of inflation or contractural 
index. These factors, of course, are all 
reflected in Untours prices for '08 (which I 
believe are guaranteed no matter what happens to 
the dollar). How much more Untours trips cost vs 
'07 I don't know but I'll bet less than 10%. 
Naturally, what you spend in-country on 
groceries, restaurants, sightseeing, etc., will 
rise in lock-step with the euro and right now 
that's about 11% vs. 2006. But put a pencil to 
the whole thing and the extra dollars '08 vs '07 
might be less than you first thought.

If you're traveling independent of Untours, just 
a few minor adjustments should keep your expenses 
to '07 levels: spend less time in cities like 
Rome and Paris and more time in the country, eat 
more picnic lunches, drop down one class in 
hotels, drive a compact car instead of a midsize, 
etc.

I remember in the mid '90s when the Swiss franc 
was 90% the value of the dollar. Take heart, 
today it's 85%.

Bob Bestor


>Definitely the depleted dollar. When the 
>Canadian dollar passes the US dollar for the 
>first time in my lifetime, you know it's our 
>economy that has the problem.
>
>The only way to beat the deflated dollar is to go to countries where they are:
>1) using the US dollar as their own currency. 
>Several Caribbean nations do this.
>2) go somewhere where the dollar hasn't fallen 
>as hard. This would be South America.
>3) go somewhere the economies are so depressed 
>that you won't notice the fall in the dollar. 
>Actually, I'm not sure depressed is the right 
>word. Typically, with third world countries and 
>emerging economies, you can get a very good 
>exchange rate against the dollar. This would be 
>true of parts of Asia and Africa. Take India for 
>example. The Indian economy is very strong, and 
>the dollar is falling hard against the rupee. 
>However, what a dollar can buy in India started 
>at such a strong point, that it can still be a 
>bargain. This is true of Southeast Asia as well.
>
>   - Jay
>
>On 10/22/07, MICHAEL CONCORDIA 
><<mailto:m.concordia at verizon.net>m.concordia at verizon.net> 
>wrote:
>
>Does anyone have any ideas how to get around the inflated Euro, or the
>deflated dollar, however you prefer to look at it.
>I don't think I'm doing Italy next year ,or in the near future ,because of
>the basically 30%+ "tax".
>Our family has been going for the past 8 years but this last trip ,in '07,
>was an eye opener.
>I guess we are heading back to the pre 1950's when only the wealthy traveled
>overseas.
>What a shame. The sad thing is that the working Italians are reaping no
>benefits from the pricy Euro.
>Mike C.
>
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