Nada Vergili

It may sadly appear that the words ‘Europe’ and ‘budget-travel’ don’t fit in the same sentence anymore as our national currency, the once-almighty Dollar, steadily spirals downwards in value against many foreign currencies, like an aged monarch steps down his thrown after decades of glorious sovereignty. Still, there are some easy steps any traveler can take to enjoy a stress-free European vacation without having to break the bank.

For those who have been able to avoid the rainfall of bad news regarding the state of our economy and the exchange rate between the Dollar (USD) and the Euro (EUR), you may also be in the obliviously happy group of those who are planning a European vacation for 2008. As the Euro gains strength against the dollar, to make things worse, general transportation and hospitality service prices have gone up throughout Western Europe, including: hotel rates, public transportation fares, as well as airfare, mostly inflated with fuel surcharges. According to the Hotels.com Hotel Price Index, prices in most of the major European city destinations rose by 5.2% year-on-year in the second quarter of 2007 to an all-time high. The UK posted a rise of 17% year-on-year, making it the most expensive country destination across Europe.

Raffaella at Caf Tour & Travel, an Italian travel agency based in Florence, Italy, says “This is the busiest time of year for us and so far we don’t see any signs of the market slowing down.” Those are surprisingly positive remarks, but don’t be fooled, this could be thanks to new tourism trends emerging from countries such as China, Greece, and Russia, which keep the European markets busy.

Francesco Medina, owner of a luxury private driver & car hire service company, also boasts good news in stating that 2008 so far is a record year for them as far as number of bookings. At the same time, Susie Gross of Navigant Vacations in Charlotte, NC says “You would think the market would be down dramatically, but it hasn't. If travelers are planning on going, they'll go. People may be complaining but they're going.” Market trends aside, should you go or should you wait for better times? Before you make your decision, take a look at some simple ways that will help you have a stress-free vacation, stay on budget, without necessarily giving up the wonderful things Europe is known for.

WAYS TO SAVE MONEY AND HAVE A STRESS-FREE VACATION IN EUROPE:

- Sign up for a tour.
Many tour companies sell a “fixed rate” in USD so that you are not subject to exchange rate fluctuations, and this alone will save you a lot of money. In most cases, taking a tour will cost you much less than going on your own and give you more services, because groups get better rates on hotels, restaurants, and transportation. If you are one of those ‘free spirits’ who consider an escorted trip the most dreadful way to go on vacation, keep in mind that having someone who knows the important sites of a town, highlights including museums, churches, local spots, hangouts, restaurants, markets, shopping areas, etc. may not be such a bad thing. Besides, there are many types of tours, not just the ‘cattle-bus’ kind where you are spending most of your time on a large loaded bus on a whirlwind itinerary with little time to relax. Small groups usually give you more of a “family” feel and will give you more free time to explore on your own. Usually, the larger the number of people on the tour, the smaller the price. Many group tours also include airfare, which will save you a lot of money. Do check the fine print carefully for what is included, what is not included in the tour package, and any extra charges.

- Use public transportation.
With unleaded gas currently around $8.50 a gallon in Italy alone, renting a car may not be the best budget-minded decision as far as getting around. Many European city centers are restricted to pedestrians, so you may have to drive long distances before you’re able to find available parking outside the historical center. Parking fees are all but cheap: for instance, parking your rental car in Florence can cost you over $4 an hour. European countries are very well connected through railroads, local and national bus routes, and in some cities you may even find a metro. There is no need for you to purchase your tickets in advance, and you will actually be over-paying if you buy a ‘Eurail pass’, unless you plan to be on the train for hours each day. Instead, buy the tickets for each segment once you’re in Italy at the ticket counter or the electronic kiosks. To get information about train schedules and fares, go to www.raileurope.com

- Pay for your accommodations upfront.
Because the Euro is on a steady rise (or the Dollar on a steady fall, however you want to put it), chances are you may end up paying much more once you’re actually there, than if you paid for your hotel at the current exchange rate. And definitely don’t take the chance of not making reservations before you leave, you’ll take a great risk in not finding availability and if you do, the hotel will most likely charge you a higher rate, in addition to the exchange rate likely to be higher than the current one. Do review the hotel’s cancellation policy, in case there is a change in plans.

- Choose your hotel based on reviews, not the ‘star rating’.
In Europe, it really doesn’t mean much. Instead, make your decision based on customer reviews, which you can easily find online. Often times, small 2 or 3 star hotels hold the same level of service if not higher and a much greater deal of charm than larger hotels, while paying a lot less. Make sure to ask if breakfast is included in the rate, as this will also save you some $$. Renting an apartment will typically be a big money-saver if your budget is very tight and if you are staying for at least a week in a particular city. However, you will be giving up many services and amenities such as a concierge, daily cleaning, satellite TV, breakfast, phone service, and sometimes an elevator. A great website to search for accommodations in Europe is www.venere.com.

- Don’t underestimate the services offered by your hotel.
If you’re looking to take a ‘daytrip’ to the countryside and visit a winery, or take a cooking class, or a guided tour to a museum, send your hotel an email and ask which services they recommend. Chances are they will be less expensive than booking a private day-trip from the US. Sometimes they will even help you with booking train and museum tickets.

- Make ‘lunch’ your main meal.
Because many restaurants may have a special fixed menu at lunchtime, this is often a chance to have an abundant meal at a great price. Don’t tilt your nose up and turn the other way when you see the sign ‘tourist menu’, which is just an ugly word for ‘chef’s daily special’. Many Europeans will take advantage of these lunch menus and you should too.

- Eat standing up!
When you go to a coffee shop there are usually two price lists: one for taking your coffee/beverage/snack/sandwich/pastry at the counter standing up, and the other, at a higher price, for sitting down and having a waiter come to bring the order to you. Don’t expect ‘free refills’ for either soft drinks or coffee, as this is not typical for Europe.

- Use your credit card and ATM cards.
The worst thing you could possibly do is to take US currency to Europe and exchange it there at a bank or any ‘exchange booth’. Use your credit card whenever possible and take cash out by using your check card (keep in mind that there is a €250 daily limit for each check card you use).

- Use the TAX FREE Form on your purchases.
A great way to save money is to fill out a “Tax Free Form”, which you can ask for in many retail shops around Europe that display the ‘Tax Free’ sign on their door. Unfortunately not all shops provide this service, but it’s worth looking for those that do. The 20% SALES TAX (VAT) is already INCLUDED in the merchandise that you are purchasing, so if an item is 10 Euros, that is what you’ll be paying at the register (tax is not added at time of payment as it is in the US). The European community encourages foreigners to spend by refunding about 13% of the sales tax, but there is a minimum purchase necessary for this, which varies from country to country. In Italy it’s about 155 Euros (as a total purchase in one single store). By filling out the form and keeping the original receipt, you can present it at the airport of departure on your way back (at the information desk), and you will get roughly 13% refund of the total taxes you’ve paid while shopping. The refund is given as either cash or by crediting your credit card. NOTE: This service IS NOT available for food, beverage, restaurants or other purchases that are not considered ‘retail gift items’. For more information, go to this website: www.globaltaxrefund.com

- Go for it! Ask for a discount!
If you are in an independent store (NOT a department store, or anything that has a brand name like Gucci, Prada, etc.) and you know you’re dealing with the owner or another person in charge, you can ask for a small discount, and they will likely give it to you. Obviously it also depends on how much you are spending. As a rule of thumb, if your purchases add up to at least 100 Euros, go ahead and try! You can expect to get about 10%, but again, the more you spend, the more you’re likely to get the discount. Your chance of getting a discount increases if you pay cash, because it saves the store owner credit card commissions.

In conclusion, you’ve been waiting so long for the vacation of a lifetime and you have made 2008 the year you finally take it. So far you haven’t received any wedding invitations, no one has announced they’re ‘expecting’, for once you’ve been dismissed from the annual assignment of taking the grand kids to the beach, and no one is supposed to be graduating from college this year … in other words, YOU ARE FREE. So, my advice is that if you have the time, if you have the health, if you have the budget to go to Europe this year, don’t renounce on your dream just because of the exchange rate. Nobody knows where the Euro will be a year from now, so it doesn’t make any sense to wait and see. Go ahead, have a wonderful trip! As they say in Italy, Buon Viaggio!

For more tips on traveling to Europe, please visit www.NadasItaly.com

Nada Vergili