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A Side-Effect of the Economic Downturn: Travel
Submitted by Scott Bergstrom on 03/18/2008 10:48:37 AM
It’s not the best time to be a Denverite abroad. As the U.S. economy tanks and the Fed lowers interest rates to keep the housing market afloat, the dollar is in freefall against other currencies. One euro will now cost upwards of $1.60 when you factor in the exchange fees most banks charge. As thousands of Denver residents prepare to embark on their spring and summer holidays to faraway lands, this couldn’t have come at a worse time. An espresso at a Roman cafe? Budget about $7. A hotel room at the Ritz in Paris? Get a second mortgage – if you can – and learn a few curse words in French. Even if you have pockets deep enough, the sinking U.S. dollar may affect how easily you get to Europe. Currently, there are only two airlines flying non-stop to Europe from DIA – Lufthansa German Airlines and British Airways. Now those convenient flights may be in jeopardy as revenue, measured in dollars, shrinks in comparison to the euro and British pound. In other words, seeing the world has gotten more expensive and – if foreign airlines keep seeing revenue evaporate – it may also become less convenient. |
