How a Weaker Dollar Will Impact US Vacationers
UNITED STATES, JUL 12 – The U.S. dollar has dropped about 10% this year, causing travel costs in Europe and Asia to rise by up to 14% despite airfare declines, experts say.
- The U.S. dollar declined about 10% in 2025, reaching a three-year low and increasing costs for Americans traveling abroad this summer.
- This decline followed several years of dollar strength and resulted from the currency being overvalued, trade tensions, and national debt concerns.
- Despite airfare dropping 10% to 13% compared to last year, travelers face higher prices for hotels, food, and transportation, especially in Europe and Asia.
- Clint Henderson stated prices are 8% to 14% higher generally due to dollar weakness, while Greg McBride said travel cancellations stem more from layoff fears than the currency drop.
- Outbound U.S. travel remains strong with a quarter of consumers planning trips, though the weaker dollar could stretch travel budgets and increase overseas spending.
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