Impact of present US$ v's EUR rate on visitors to US

Rashers72

With commercial FX rates hitting 1.11 US to EUR on Friday, this equates to a bank teller/credit card rate of approx. 1.085 for transactions on this weekend/Monday.
So effectively a good/service priced at USD10 plus tax now costs EUR10. In reality for normal customers, shop price windows are now at parity. Fantastic for visitors from US to Ireland, or for Irish exporters, but I wonder will this have a negative impact of visitors considering going to US from Europe? Effectively, prices of hotels, car rental, food has risen by 20% since last summer (I got US$50 last summer at 1.37). With the US domestic economy so big, I wonder will those in the hotel industry etc. feel the need to adjust packages to attract visitors from Europe. Any thoughts?

IrishPhoenix

Well, I'm heading to NYC and the exchange rate is making things so much dearer. The hotels were expensive enough as is and adding another hundred or two thanks to the currency drop wasn't something I'd planned for.

Re US hotel pricing, I'd say it depends where you're going. The big tourist draws like NYC, San Francisco etc I can't see the prices dropping much. Definitely not this year anyway. They won't do anything unless they stop filling rooms and I don't think that's too much of a problem in the more popular cities.

iusedtoknow

The reality is that most hotels are filled with domestic tourists, with non americans being in the minority. European visitors are 3rd in the amounts that come every year, and not all of them would be from Eurozone countries - (UK, Swiss, Swedish etc)

The other side of it is, domestic tourism here is huge - the bread and butter of the tourist industry here is domestic, so there is no need for the industry to lower prices for european visitors

InTheTrees

We've had 10+ years of the US Dollar being in the toilet so its nice to see an adjustment.

I was getting tired of coming back to Ireland and finding everything exorbitantly expensive its about time there was a more realistic level.

ProudDUB

iusedtoknow wrote: »

The reality is that most hotels are filled with domestic tourists, with non americans being in the minority. European visitors are 3rd in the amounts that come every year, and not all of them would be from Eurozone countries - (UK, Swiss, Swedish etc)

The other side of it is, domestic tourism here is huge - the bread and butter of the tourist industry here is domestic, so there is no need for the industry to lower prices for european visitors

I'd agree with that. Domestic tourism, business travelers, as well as non EU visitors accounts for a lot more bookings than Euro zone tourists do. We are not as important to their bottom line as we like to think. That being said, a loss of business is still a loss of business. If for arguments sake, we account for 20% of bookings, that a big enough dent in corporate pockets for companies to sit up and pay attention.

The likes of the Holiday Inn at Fishermans Wharf or the Times Sq will be fine. But there are some places that do get a high number of European visitors. The outlet malls in New Jersey attract a lot of European visitors & Miami that gets a lot of Eurotrash visitors in the winter? If they see a substantial drop in profits, it may motivate them to lower their own rates, as well as get the chambers of commerce and what not to do something, or put pressure on hotels to lower rates, offer deals etc etc.

MadsL

Really bad timing for me as I am trying to expatriate a pension in the region of $20k.

Sigh. Lost $1500 in about 2 months.

MarkY91

Really a kick in the balls for me. Heading to Vegas on June with €2500. Losing 300 dollars now compared to if buying in November. I have half my budget already. Is it wise to change now? As everywhere I look, people say the euro could be level with te dollar soon and it certainly won't get any better than t is now by june

jaymcg91

MarkY91 wrote: »

Really a kick in the balls for me. Heading to Vegas on June with €2500. Losing 300 dollars now compared to if buying in November. I have half my budget already. Is it wise to change now? As everywhere I look, people say the euro could be level with te dollar soon and it certainly won't get any better than t is now by june

I would, I'm going on a j1 in the summer, I'm transferring it to my US bank account as quick as I get it.

It's only going to get worse once QE kicks in in the Eurozone, the dollar is becoming stronger and stronger. They predict in 3 or 4 months it could be on parity with the dollar.

MarkY91

if the rate is 1.14 then why is the post office selling at 1.0899?

:S where do i go to get non rip off actual rates?

boreder

MarkY91 wrote: »

if the rate is 1.14 then why is the post office selling at 1.0899?

:S where do i go to get non rip off actual rates?

They need to make money somehow... it's a service... you pay to use it. Like everything else.

MarkY91

boreder wrote: »

They need to make money somehow... it's a service... you pay to use it. Like everything else.

so their 0% commission thing is aload of bollocks then. theyre making a 90 dollar profit off of me. anywhere offering even slightly better rates?

IrishPhoenix

MarkY91 wrote: »

if the rate is 1.14 then why is the post office selling at 1.0899?

:S where do i go to get non rip off actual rates?

If the rate is 1.14 at the moment but was 1.12 yesterday, giving a sell rate of 1.0899, then the rates on the post office website won't be updated until the morning and if the rate is 1.14 tonight they should be selling at about 1.11 tomorrow. The 1.14 is bank rate, not commercial, and won't be passed on to you by any bank/currency exchange.

ProudDUB

MarkY91 wrote: »

so their 0% commission thing is aload of bollocks then. theyre making a 90 dollar profit off of me. anywhere offering even slightly better rates?

Exchange rates are all smoke and mirrors when it comes to getting the best deals. The places that have the best pound for pound rates, usually have add on fees like commissions and service fees and whatnot. The places that have no add on fees, usually offer crap pound for pound rates. The only thing a savvy shopper can do is pay attention to both and then see who offers the best deal over all. Don't be taken in by just one aspect of their offer.

InTheTrees

MarkY91 wrote: »

Really a kick in the balls for me. Heading to Vegas on June with €2500. Losing 300 dollars now compared to if buying in November. I have half my budget already. Is it wise to change now? As everywhere I look, people say the euro could be level with te dollar soon and it certainly won't get any better than t is now by june

I'm no expert. But the increased US oil drilling has been a shot in the arm for the economy. Everyone seems happy with the low petrol prices. And its fcking with Russia. All wins.

So I dont see anything changing soon to drop the level of the $.

And now look at Greece threatening to leave the euro and not pay its debts. I wouldnt have thought thats going to do the euro any good.

MarkY91

just a kick in the balls with this sudden euro rate drop. i wasnt aware of us not getting the full rate you see on XE.com or whatever either so you can imagine how frustrating it is.

ive a 1000 euro now and will be planning on changing 2500. do you think i should change the 1000 now seeing as there is not much hope of a rise?

oneofakind32

I move to New York in April when it was $1.40 for a euro. I finally got a job and a visa sorted and started work in October, making that sweet sweet dollar! Looking forward to going home in April, should be fun!

MarkY91

if anyone has dollars theyre looking to get rid off at the proper rates then send me a message. lets cut out the middle man in it!

euro - 1.14. dollar - .88

MarkY91

oneofakind32 wrote: »

I move to New York in April when it was $1.40 for a euro. I finally got a job and a visa sorted and started work in October, making that sweet sweet dollar! Looking forward to going home in April, should be fun!

at least theirs SOME irish people benefiting from this lol

hfallada

If you know anyone with a student account. Get them to buy fx for you. Aib or BOI don't charge commission when you buy fx when you have a student with them

MarkY91

hfallada wrote: »

If you know anyone with a student account. Get them to buy fx for you. Aib or BOI don't charge commission when you buy fx when you have a student with them

im not sure if i do. not anyone close anyways. ill remember that. thanks!

jaymcg91

MarkY91 wrote: »

if anyone has dollars theyre looking to get rid off at the proper rates then send me a message. lets cut out the middle man in it!

euro - 1.24. dollar - .88

They'd make more at a bank, that'd only benefit you :P.

athtrasna

MarkY91 wrote: »

just a kick in the balls with this sudden euro rate drop. i wasnt aware of us not getting the full rate you see on XE.com or whatever either so you can imagine how frustrating it is.

ive a 1000 euro now and will be planning on changing 2500. do you think i should change the 1000 now seeing as there is not much hope of a rise?

Changing that much cash is a security risk both between now and your trip, and during your travels imo.

MarkY91

jaymcg91 wrote: »

They'd make more at a bank, that'd only benefit you :P.

How? They won't be getting .88 at a bank. It would be taking out the 3rd party fees for both of us. As far as I'm aware anyway

spideog7

MarkY91 wrote: »

How? They won't be getting .88 at a bank. It would be taking out the 3rd party fees for both of us. As far as I'm aware anyway

The inverse of 0.88 is about 1.14 not 1.24.

If you want to cut out the middleman use currency fair, they offer the closest you'll get to the going rate by offering a peer to peer exchange exactly like you're trying to set up.

MarkY91

spideog7 wrote: »

The inverse of 0.88 is about 1.14 not 1.24.

If you want to cut out the middleman use currency fair, they offer the closest you'll get to the going rate by offering a peer to peer exchange exactly like you're trying to set up.

Oh I see. New to this currency stuff so I didnt realise

MarkY91

spideog7 wrote: »

The inverse of 0.88 is about 1.14 not 1.24.

If you want to cut out the middleman use currency fair, they offer the closest you'll get to the going rate by offering a peer to peer exchange exactly like you're trying to set up.

i was supposed to say originally 1.14, not 1.24...how i didnt notice that, i do not know :rolleyes:

ill change it. thanks!

Naked Lepper

hope it changes by end of april start of may as am planning a little trip across
no point changing euro to dollars now as i did that before and then the euro got stronger again before i went
all u can do is wait and hope euro gets stronger

MarkY91

Naked Lepper wrote: »

hope it changes by end of april start of may as am planning a little trip across
no point changing euro to dollars now as i did that before and then the euro got stronger again before i went
all u can do is wait and hope euro gets stronger

yeah but many peoples opinions is that it is at high risk of dropping further

Rashers72

Naked Lepper wrote: »

hope it changes by end of april start of may as am planning a little trip across
no point changing euro to dollars now as i did that before and then the euro got stronger again before i went
all u can do is wait and hope euro gets stronger

Of course this prediction is already out of date, but might provide some guidance: http://www.fxcentre.com/monthly/201501_ExchangeRateMonthly.pdf

MarkY91

changed 1150 euro and got 1250 dollars back. crap but its got to do. will change around the same amount in june before i set off.

Wompa1

It could be great for me. I've been saving like a mad yoke since I got here. I'd love to buy a home in the next 2-3 years. If it keeps up, Ireland might actually be affordable for me!

Rashers72

Some dollar weakening and euro strengthening has brought US$ to EUR from 1.1096 on Jan 26 back to 1.1475 yesterday. The question is where to now? A short reprieve, or a trend?????

dirkmeister

I'm heading over to the US next month, should I buy now or wait until closer to the time?

Or is it just pure guess work?

Wompa1

dirkmeister wrote: »

I'm heading over to the US next month, should I buy now or wait until closer to the time?

Or is it just pure guess work?

Guess work but based on my guess from being in the US. Things are getting stronger and stronger here. Fuel prices keep falling. The city I'm in is experiencing a bit of a boom. House prices are on the rise.

Looking over at Europe. It looks like Ireland is gaining again but some of the other countries may be dragging the euro down. I'd guess the euro will have a slower recovery, so it might be worth waiting..But that's just my own guess...

MarkY91

The euro dropped again. Couldnt of chosen a worse time to visit the US (late june)

househero

MadsL wrote: »

Really bad timing for me as I am trying to expatriate a pension in the region of $20k.

Sigh. Lost $1500 in about 2 months.

Wait until it goes back up. 1.30 1.40 is a typical range. Unless ur gnna pop ur clogs anytime soon or desperate for $

househero

Wompa1 wrote: »

It could be great for me. I've been saving like a mad yoke since I got here. I'd love to buy a home in the next 2-3 years. If it keeps up, Ireland might actually be affordable for me!

It won't keep up. And if you can't afford now when prices are so low?!?

MarkY91

househero wrote: »

Wait until it goes back up. 1.30 1.40 is a typical range. Unless ur gnna pop ur clogs anytime soon or desperate for $

but it wont go back up. im no expert or anything in this field but most places i visit online are either doom and gloomy about the euro or even go as far to say the euro and dollar will be on parity by the end of the year

i just hope its a little higher by june when i plan on changing the 2nd half of my money..i changed money in january and the credit union gave me a rate of 1.09

do you reckon it will take a u-turn before june?

Rashers72

househero wrote: »

Wait until it goes back up. 1.30 1.40 is a typical range. Unless ur gnna pop ur clogs anytime soon or desperate for $

Show me any financial institution or media outlet supporting that prediction within the next 1-2 years? Most are predicting parity by year end. The only difference is the Euro weakness is bringing us there a lot quicker then expected. Great news for our exporters and visitors from US.

endofrainbow

Just back from the States and must admit I did find it more expensive. Last September the rate was 1.38 and 2 weeks ago it was 1.12. Quite a difference.. It's still cheaper than here and I would only reconsider traveling if it dropped below 1.00.

MarkY91

getting worse by the day for fellow holiday makers to the states

Rashers72

http://www.fxcentre.com/news.asp?3267298

MarkY91

Rashers72 wrote: »

http://www.fxcentre.com/news.asp?3267298

im not sure after reading that wether it was bad or good news

Rashers72

MarkY91 wrote: »

im not sure after reading that wether it was bad or good news

Heard an economist on Newstalk this morning who reinforced how everyone has been caught about by the speed of the rate changes. His recommendation to Irish holiday makers going to the US was buy now. He reckoned it will go to parity within a few weeks and keep going towards .98 cent. He did not give predictions beyond that.

MarkY91

the euro went up to 1.06 today..i wonder what the post office will be offering? too bad its paddys day tomorrow as i would have cashed in and took anything i could before the inevidable parity and below.

dirkmeister

I bought dollars today in the bank. (more fool me)

$500 FOR €495

MarkY91

It really puts a dampener on your holiday, doesn't it

dirkmeister

MarkY91 wrote: »

It really puts a dampener on your holiday, doesn't it

It's a bit of a pain but in the great scheme of things I'm not going to let something like exchange rates put a downer on my holiday.

I'm going to buy another $500 worth ASAP though.

boreder

This time last year I was getting 1.39 on my debit card over there. Crazy.

MarkY91

dirkmeister wrote: »

It's a bit of a pain but in the great scheme of things I'm not going to let something like exchange rates put a downer on my holiday.

I'm going to buy another $500 worth ASAP though.

Great point. Sure I'm gonna take cesars palace for all its worth on the blackjack tables anyway

jaymcg91

On the plus side, at least the dollar has crept back up to $1.10 for €1.

Bloomberg reckons that the rise is over for it, and it'll slowly start to come back down. Provided Greece don't leave the Eurozone in the immediate future .