The lure of India for backpackers, Mexico for sun-seekers and Thailand for digital nomads is all about going where money can buy you more.
The ever-popular budget-travel strategy is gaining momentum this summer as high interest rates from the Federal Reserve have caused the dollar to soar against many foreign currencies, including the Japanese yen, attracting foreign investment and boosting the greenback.
“Weaker destination currencies create more value for American tourists,” said Elina Pinder, chief operating officer and managing partner at SmartFlyer, a global travel agency based in New York City.
“This economic advantage could make far-flung destinations in Asia, such as Indonesia, Vietnam and Japan, and South America, such as Peru, Argentina and Chile, more accessible than ever before,” she added.
Airfares to faraway destinations are typically high, combined with the physical toll of jet lag, driving travel to North America's neighbors, Canada and Mexico, where exchange rates have long favored the dollar's purchasing power.
However, this year there are several new contenders with attractive exchange rates, including the following destinations:
Australia
Currently, the US dollar is worth around 1.50 Australian dollars and has risen by around 16 percent over the past three years.
The hurdle, of course, is long-haul flights, which can cost more than $1,000 round trip, but travel search engine Kayak offers summer return flights between the West Coast and Sydney from $770, with the most availability in August.
Flying around Australia isn't cheap either, especially since the recent collapse of budget airline Bonza. Jetstar offers cheaper fares, with one-way tickets between Melbourne and Adelaide recently selling for $50.
Campervans are an affordable way to take a road trip in Australia, with companies like Jucy, Britz and Apollo offering vehicles with beds and cooking facilities. Jucy recently offered prices of around $53 per night for a two-seater van to rent for a week in July.
What is summer in the Northern Hemisphere is winter in Australia. If you're planning a skiing holiday in the Australian Alps, Tourism Australia recommends avoiding mid-July, when the school holidays are over and many families head to the slopes.
Australia's lack of tipping culture could mean tourists can save 20 percent on restaurant meals, said Craig Bradbury, chief operating officer of Baillie Lodges, which includes the newly rebuilt luxury Southern Ocean Lodge on Kangaroo Island.
Bali, Indonesia
Many Southeast Asian countries, such as Thailand, Vietnam and Cambodia, offer attractive exchange rates. In Indonesia, the rupiah is at a four-year low against the dollar.
“I send clients to Bali, Indonesia,” said Rob Huey, owner of Millsboro, Del.-based Luxury Travel Services by Rob, noting the island's low cost of living. “The catch is that it's expensive to fly there in the first place, but once you're there, you can stay in very affordable three- and four-star hotels, with meals ranging from $10 to $25 a day and massages ranging from $10 to $30.”
Travelers with Marriott loyalty points can redeem them at the Four Points by Sheraton Bali Kuta (from $57 per night), while IGH Rewards members can spend and earn points at Hotel Indigo Bali Seminyak Beach (from $138).
TripAdvisor's top list of budget hotels in the central highlands around Ubud includes options for under $100.
Bali is a good place to find vacation rentals, according to home-rental platform HomeToGo: The average price per night for a rental in Bali this summer is $86, compared with $388 for an average rental in the U.S., according to the company's data.
“Despite the strength of the US dollar globally, prices across the US continue to rise, with travellers turning to international destinations for cheaper accommodation,” said Eleanor Moody, travel expert at Home To Go, adding that searches for rental properties in Indonesia have more than doubled in the past year.
Columbia
South America, including Argentina, where inflation is soaring, and Peru, where the sol is falling against the dollar, is another region where value can be found.
“Don't go to Europe,” said Cécile Brott, owner of Boundless Travels, a travel agency in Washington, D.C., as she praised the “tricky destinations” of South America. “Many countries on the southern continent offer history, culture, nature, great food and world-class accommodations, all at a fraction of the price of Europe.”
One of them is Colombia, where the dollar recently traded at about 3,935 pesos, up about 20 percent over the past five years.
“Colombia has something for everyone,” said Stephanie Picchonat, owner of Terre Haute, Indiana-based AAV Travel, adding that Cartagena in the Caribbean is an affordable alternative to European capitals and the coastal Tayrona National Park is a cheaper option than Costa Rica.
“Coffee lovers can spend days touring coffee plantations, avid hikers can try their hand at a trek into the Paramo Desert and birdwatchers have plenty of options to explore,” she added.
Flights are frequent and affordable: A recent search for round-trip fares from the New York area showed summer departures starting at about $290 to the capital, Bogota, and $320 to coastal Cartagena.
From Bogotá, you can continue to Chingaza National Park in the eastern Andes, or spend a few days in the laid-back colonial city of Villa de Leyva, but Colombia's mountainous terrain and dangerous roads mean you'll often need to take internal flights to see other parts of the country.
Among the travel companies that will do the planning for you, UK-based Responsible Travel offers a customizable 12-day Colombia trip (from $2,990 per person) that visits Bogotá, MedellÃn and the central coffee region, including the lush Cocora Valley, home to 200-foot-tall wax palm trees.
Japan
The U.S. dollar is currently trading at around 156 yen, up more than 11% over the past year.
Demand for Japan was already surging when economic conditions improved: BWH Hotels, which includes Best Western Hotels, said it had seen steady increases in occupancy and room rates over the past two years, driven by demand and staff shortages, especially in popular tourist destinations such as Tokyo, Osaka, Kyoto and Hokkaido.
But with careful planning, Americans can take advantage of the exchange rate: IHG Hotels & Resorts, which operates the country's hotel brands, from the design-oriented Voco to the upscale InterContinental, recommends traveling by early July for the best rates (a night at the Voco Osaka Central starts at $135).
While the Japanese-owned Hoshino Resorts is more upscale, its OMO line offers more entry-level accommodations, from capsule hotels to full-service properties. OMO5 Kyoto Gion, for example, offers rooms with kitchens for up to six people starting at 24,000 yen (about $153). Staff guides offer free tours of area temples.
While many temples, parks and shrines are free to enter, visitors to Tokyo can purchase the “Tokyo Museum Pass” for 2,500 yen (about $16) which includes admission to more than 100 museums and attractions around the city.
In its advice for budget travelers, the Japan Tourism Organization recommends having a big lunch, as many restaurants offer special lunch menus.
There are many cheap ways to travel around Japan, including trains (a Japan Rail Pass starts from 50,000 yen (about $320) for seven days), low-cost airlines such as Peach or Zipair, and overnight buses.
Alternatively, consider walking the Kumano Kodo pilgrimage route that links the sacred shrines of the Kii Mountain Range; Walk Japan offers a seven-day self-guided tour from 224,000 yen, which includes accommodation and most meals.
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