In late May, the U.S. dollar fell for a third day against several currencies, and it’s evident the power of the U.S. dollar is weakening, leading many Americans to wonder if this will influence travel this summer and beyond.
In fact, the U.S. dollar has declined in spurts across 2025. According to Northeastern University, the value of the dollar fell about 9 percent in January and dropped 4.5 percent in April alone. While normal for the value of any currency to rise and fall, this recent trend with the U.S. dollar will likely impact Americans traveling abroad.
According to a survey by Bankrate, less than half of Americans plan to travel this summer, citing cost as the main factor. And a quarter of U.S. adults aren’t planning a summer vacation at all this year. And for those already with travel plans this summer, taking the volatility of the U.S. dollar into consideration will be important.
Bilge Erten, associate professor of economics and international affairs, Northeastern University, noted, “A weaker U.S. dollar means in order to buy the same goods, you have to give up more dollars abroad, so it’s going to increase travel costs.”
Americans traveling abroad will find paying for things like hotel rooms and train tickets are more expensive than they would have been several months ago.
On the same note, international tourists entering the United States will find their currency holds greater purchasing power.
That said, the U.S. dollar is still considered one of the most stable currencies in the world. But, for this summer, travelers worried their vacation may put more of a strain on the wallet than initially thought will find there’s several ways to keep the trip reasonably priced:
- Opt for a summer trip closer to August, as travel between June and July tend to see more crowds and higher prices for airlines and hotel rooms, particularly at popular destinations like Venice, Santorini, Paris and Barcelona, to name a few.
- Consider a mid-week vacation instead of one on the weekend
- Book as early as possible to avoid higher-priced airline tickets and accommodations
- Be flexible with travel dates and destinations
Are you traveling this summer? Have you experienced higher prices on airlines and hotels yet? Do you have any other additional tips for travelers looking to save money this summer? Email us at letters@globaltravelerusa.com. Please include your full name and location.
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