We all know that exchange rates change. But we don’t always think about those rates when we’re planning our next big adventure. As the value of the U.S. dollar changes, so does the buying power U.S. travelers when they’re abroad.
Sometimes those fluctuations are enough to warrant putting off a trip to one of your bucket list destinations for another year. Or maybe to bump an exotic locale to the top of the list so you can take advantage of the extra power your dollar will have while you’re there.
RewardExpert’s latest report looks at just that phenomenon by taking a deep dive into the changes in exchange rates over the last year. And their conclusion? You may want to start looking for a flight to some destinations right now, while other vacation spots are best saved for another day.
A Little Context
Before we get too far into the findings, it’s worth noting that the differences in exchange rates over the past year haven’t been big enough to justify jumping on the next flight to a destination whose currency has lost a lot of value.
On the other hand, if both Turkey and Thailand, for example, are on your list of places you want to see, Turkey’s a better choice at the moment since the dollar has gained about 28 percent in value over the last year. Thailand’s currency, on the other hand, has gotten about 6 percent more expensive.
By the way, Turkey made the top spot on the report for places that have gotten more affordable, and Thailand earned the top spot for places that have gotten more expensive.
All of this, of course, is relative to each country’s currency. So overall affordability of a destination is largely independent of changes in the exchange rate. In other words, it’s still cheaper to travel in Botswana than Switzerland even though the Swiss franc lost value against the U.S. dollar and the Botswana Pula is worth more.
The Dollar Has Lost Ground Overall
On the whole, the U.S. dollar hasn’t done very well recently. There could be any number of reasons for this, but the unpredictability of the current President and his trade policies certainly don’t help.
This is generally bad news for U.S. travelers. Most places you might be thinking about going will be a bit more expensive. It’s not in a free fall, though, and the drop shouldn’t be enough to keep you from traveling.
Where You Should Go in 2018
As I already mentioned, Turkey topped the list of destinations where the U.S. dollar has gained the most value. In fact, it is the place that saw the most change, either positive or negative.
The U.S. dollar will buy about 28 percent more in Turkey right now, so if you’ve always wanted to see the country—and you’re not too concerned about the current political situation over there—now’s probably a good time to plan a trip.
Mexico made number two on the list with the U.S. dollar gaining about 7% in value. And a flight from the U.S. to Mexico will be a whole lot cheaper than to any other spot on the list.
Rounding out the top places you should consider this year if you want your dollar to stretch a little further is Kazakhstan, Nepal, Indonesia, Sri Lanka, Switzerland and New Zealand. Hong Kong and Trinidad and Tobago also made the top ten, but the changes in their exchanges rates were very minor, coming in at less than 1 percent.
Here’s an overview of the top ten:
| Increase in Value of U.S. Dollar | |
| Turkey | 28.39% |
| Mexico | 7.15% |
| Kazakhstan | 5.68% |
| Nepal | 5.10% |
| Indonesia | 4.54% |
| Sri Lanka | 3.57% |
| Switzerland | 1.65% |
| New Zealand | 1.32% |
| Hong Kong | 0.66% |
| Trinidad and Tobago | 0.02% |
Places You Might Want to Skip This Year
I’m sure Thailand is on many lists of dream destinations, but 2018 might not be the best time to go. It made the top spot for places that have gotten more expensive due to a drop in the value of the U.S. dollar. You’ll get about 6% less for your money if you travel there now compared to last year.
Croatia stunned soccer/football fans everywhere by making it to World Cup final, but you may want to put off a trip to the idyllic coasts of this Eastern European spot. That’s because the Croatian Kuna has gained about 4 percent against the USD this past year.
The rest of the top ten that have gotten more expensive includes Canada, Bulgaria, the European Union, Botswana, South Korea, Singapore, Romania and Australia.
Here’s an overview of the spots you may want to skip this year:
| Decrease in Value of the U.S. Dollar | |
| Thailand | -5.85% |
| Croatia | -4.16% |
| Canada | -3.96% |
| Bulgaria | -3.81% |
| The European Union | -3.76% |
| Botswana | -3.73% |
| South Korea | -3.55% |
| Singapore | -3.25% |
| Romania | -1.82% |
| Australia | -1.79% |
Other Tips for Making Your Dollar Go Further
One big takeaway from the report is that the biggest expense when it comes to travel to most of these destinations is the airfare. That’s particularly true of the countries that are harder to get to, but otherwise offer affordable travel. From the list of places where the dollar gained notable ground, I’d include Nepal, Sri Lanka, Turkey, Indonesia and Kazakhstan in that category.
If you’re thinking of traveling to one of those destinations, you should consider staying for as long as possible to get the most out of that expensive plane ticket. Once you’re there, you’ll find that your daily costs will be relatively little compared to, say, Switzerland, Australia, New Zealand, Canada and the European Union.
Travel Credit Cards Can Help
Since airfare is often the most expensive single purchase you’ll make for a trip, it’s worth noting that getting a great rewards credit card can help cover those costs. If you play your cards right, you can easily cover the entire cost of your airfare with the right card.
If you’re familiar with frequent flyer programs, a card that’s part of a robust rewards program, like Chase Ultimate Rewards, American Express Membership Rewards and Citi ThankYou Rewards, is a great option. With those programs you can transfer the points you earn directly to a select group of airlines or book through the programs’ respective online travel portals.
Beginners and those who don’t want to deal with complicated award charts and limited award availability might be better off with a more straight forward travel card, like those offered by Discover and Capital One.
With those programs, you’ll earn miles that can be redeemed for statement credits to offset travel expenses. That means you can simply buy the travel you want from any vendor and reimburse yourself with the miles you’ve earned. You might not get quite as much from your points with a program like this, but they are simple, easy to use and still quite valuable.
Bottom Line
Traveling is expensive. So it can be important to get as much as you can for your dollar. Hopefully I’ve given you some ideas about the destinations you should prioritize and avoid this year based on recent changes in exchange rates. And don’t forget, a great travel credit card can help you pay for the most expensive part of many adventures—the airfare.