Why Europe Travel May Become a Bargain in 2025

Given it’s eternal popularity, it’s hard to believe Europe may become something of a bargain for travelers. But a few experts are predicting that may soon be the case.

Brendan McKenna, an international economist at Wells Fargo Economics, told NBC News recently that the shifting euro-U.S. dollar exchange rates could mean trips to Europe will grow far more wallet-friendly.

The euro has weakened against the dollar recently and McKenna and others project that trend will continue through next year and perhaps into 2026, as well.

“That’s a good thing for American tourists traveling abroad in Europe,” McKenna told NBC, adding that American’s purchasing power could rise “pretty significantly.”

For decades now, the euro has been especially strong and that has meant U.S. travelers pay a steep cost for visits to the continent.

But economists are forecasting a continued decline in the value of the euro that may bring it into parity with the U.S. dollar next year, or may even make it worth less than the dollar, NBC reported.
 
This is due to a variety of factors, among them, the strength of the U.S. economy over the past year or two. One expert, James Reilly, senior markets economist at Capital Economics, wrote in a research paper that the U.S. economy has “held up a lot better than anyone has been expecting.”

This is in contrast to what’s been taking place in Europe, where some economies have not fared as well.

The moral of the story for travelers?

There are 20 European nations that rely on the euro, and they may become far more affordable in 2025. For those planning a trip, the run-down of countries using the euro includes Austria, Belgium, Croatia, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain.

To make the most of the evolving euro currency dynamics, consider delaying travel-related purchases in Europe until 2025, allowing the euro additional time to continue its downward trend.

It’s also important to note however, that faced with tariffs from the incoming Trump administration, Europe may retaliate. If that happens, it may involve penalizing Americans by raising some consumer prices, including airfares, Reilly said.

For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.

Topics From This Article to Explore