In a rare twist for summer travellers, flights to Europe have become significantly more affordable this year. But for many Americans, the savings stop the moment they touch down.
Airlines have ramped up capacity on transatlantic routes, driving down ticket prices to some of the most popular destinations. Bargain-hunters can find last-minute round-trip fares to London, Rome, Barcelona and Paris for hundreds less than what they paid in 2024. Travel data shows prices for some European routes have dropped by as much as 20 percent.
Yet any sense of relief is proving short-lived. Once across the Atlantic, U.S. visitors are discovering that their dollars no longer stretch as far. The euro has strengthened in recent months, with €1 now costing approximately $1.18—up from near parity in recent years. The British pound has seen similar gains. For Americans abroad, this means everything from hotel rooms to a simple café lunch can cost noticeably more.
A Summer of Cheaper Flights, Pricier Stays
The result is a summer travel season full of contradictions. Airfare may be cheaper, but hotel rates in European capitals remain at or near record highs. In Paris, where millions will converge for the Olympics, average nightly prices have surged. In Rome and London, travellers face increased costs for food, sightseeing, and shopping, all compounded by the weaker dollar.
For some, the solution lies in seeking out less expensive alternatives. Portugal, Greece, and parts of Central and Eastern Europe continue to offer better value for American travellers. Others are adjusting their plans by shortening their stays, booking all-inclusive packages, or seeking out apartments instead of hotels.
Currency shifts have also prompted travellers to get more strategic with spending. Some are pre-paying for accommodations or excursions in dollars, while others rely on no-foreign-fee credit cards to save on exchange costs.
Navigating Europe’s Changing Travel Costs
For Americans heading to Europe this summer, experts advise a blend of flexibility and planning. Consider these tips:
- Choose Your Destination Wisely: Southern and Eastern Europe may offer better value than perennial favourites like Paris, Rome or London.
- Book Early, Pay in Dollars: Locking in rates now can protect against further currency swings.
- Stay Longer in Fewer Places: Avoid the cost of multiple transfers and focus on in-depth exploration of a single region.
- Monitor Exchange Rates: Even small shifts can impact spending power over a multi-week trip.
The romance of Europe remains timeless, but for U.S. travellers in 2025, a favourable airfare is only part of the story. From exchange rates to local inflation, making the most of a European holiday this year requires both luck—and a little financial savvy.
Yet despite these challenges, the rich cultural experiences and lasting memories continue to draw Americans across the Atlantic.
