How the Current Exchange Rate Will Increase European Travel

The economic crisis affecting most of the world has lowered the value of much of our currency. This isn't exactly a reason to celebrate. However, the news isn't bad for those of us planning a trip. Lowered exchange rates make it slightly more affordable to travel to places like Europe and the UK. For instance, I am planning a trip to London next March and of course, am trying to save money. The American dollar is usually half as valuable as the British pound. Not anymore. Check out the exchange rate table below.

USD   GBP    USD     GBP      USD      GBP          
1 =     0.65     10 =     6.53       100 =     65
2 =     1.31     15 =     9.80       200 =     131
3 =     1.96     20 =     13.07     300 =     196
4 =     2.61     25 =     16.34     400 =     261
5 =     3.27     30 =     19.60     500 =     327
6 =     3.92     35 =     22.87     600 =     392
7 =     4.57     40 =     26.14     700 =     457
8 =     5.23     45 =     29.41     800 =     523
9 =     5.88     50 =     32.67     900 =     588

Additionally, UK travelers through Europe will notice their money going a bit further. The Euro and the Pound are nearly at parity.

GBP   EUR    GBP     EUR     GBP      EUR          
1 =     1.11     10 =     11.15     100 =   111
2 =     2.23     15 =     16.72     200 =   223
3 =     3.34     20 =     22.29     300 =   334
4 =     4.46     25 =     27.87     400 =   446
5 =     5.57     30 =     33.44     500 =   557
6 =     6.69     35 =     39.01     600 =   669
7 =     7.80     40 =     44.59     700 =   780
8 =     8.92     45 =     50.16     800 =   892
9 =   10.03     50 =     55.73     900 =   1003

Ok, so depending on where you live, you may see this as good news or bad news. However, for many of us, a trip overseas just became a bit more affordable.

With the VAT Drop, Every Pence Counts

Those of you currently living in the UK, (and those of you who stay looped in to International affairs,) may know that the UK government has dropped the VAT from 17.5% to 15% across the board. The effort is being met with lukewarm enthusiasm by some, but many retailers have already dropped prices somewhat. For instance, the iconic Mark & Spencers is offering 20% off and big online retailers like  Amazon have already dropped 2.5% off all products.

The thinking behind this type of decrease is that people may be encouraged to spend money if they feel they are getting a great deal. Is a 2% discount significant enough to boost the economy? Perhaps yes, perhaps no. But who doesn't love a good deal at the holidays, and in this economy, every pence counts. The trick is, the more you spend, the more you save.

The VAT cut from 17.5% to 15% went into effect on 1 December for 13 months, although there is no requirement for shops to drop prices in line with the cut.

Check out this article on the VAT cut from BBC News.