In late September 2024, a €250/night hotel in Paris—the price of many four-star hotels in the French capital—would have cost you nearly $280. As of this writing, that price is down to $256.
For the last 12 months, the U.S. dollar has struggled to hold its own against the euro. The average exchange rate has been barely $1 to €0.92. But now the dollar and euro are nearly equal: since January 7, 2025, the rate has been $1 to €0.97-98. Currency exchange rates fluctuate daily but, considering that in late September 2024, $1 would get you only €0.89, this is welcome news for U.S. travelers heading to Europe.
The eurozone consists of 20 countries in the European Union: Austria, Belgium, Croatia, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia, and Spain. On January 1, Bulgaria and Romania joined the Schengen Area, and both are expected to join the eurozone, with Bulgaria’s adoption of the euro planned for 2026.
The dollar is also gaining ground against other currencies. The British pound has been reigning supreme for nearly two decades, but the exchange rate on January 14 was $1 to £0.82, the highest since a spike between August 2022 and February 2023.
In terms of purchasing power: a Heathrow Express ticket, booked online less than 45 days in advance, costs £25.00. On October 29, 2024, this was the equivalent of $32.55; as of this writing, that same ticket costs approximately $30.50. While $2 might be negligible, the savings add up when it comes to hotels. A room at The Ned, a hotel/member’s club in the City (London’s financial district), for example, is £340 per night for a weekend in early March 2025 ($414 as of today’s rate). A year ago, that hotel would’ve cost $436.50 per night.
For U.S. tourists, travel in Europe over the past two decades has come with an exchange rate “tax” on every purchase. From a souvlaki in Athens to a ticket to Pompeii, the amount in dollars on your credit card statement was often 20, 30— or, in the U.K.—even 40 percent higher than the price you saw in euros (or pounds). That can be a rather brutal comedown after a vacation.
Whether or not the dollar will continue its upward trajectory is difficult to predict. Currency forecasting is challenging given all the complex—and often rather volatile—economic and political factors. A January 3 post by J.P. Morgan Asset Management says that "…robust [economic] growth, which has contributed to inflation remaining above 2%, may lead the Fed to halt rate cuts sooner than expected. This makes a dollar weakening unlikely in the short term.”
What this means for travelers is that now is the time for a European vacation, especially when many summer destinations are far cheaper and less crowded in winter.
This article was originally published in 2022 and most recently updated on January 15, 2025, with current information. Michelle Baran contributed to the reporting of this story.
