Q – This is one of those annoying questions about cost issues. We want to plan a trip to Spain and Portugal in the next few months but we are reading that hotel rates and airfares are going up significantly compared to where they were pre-Covid. Should we cancel the trip for a year or two in the hope that prices will come down?

A – No not at all. Your average air and hotel costs are going to rise in the range of 25-40%. That is likely a permanent change with prices likely going even higher based on projected demand in 2025-26. The side of the price story often missed is that the dollar has almost achieved parity with the value of the Euro. This means that your dollar gets you more Euros than it has at any time since Spain and other European countries adopted the Euro as their common currency. Food and shopping costs have never been better for Americans traveling to Euro nations. This will more than compensate for initial, air, hotel, and tour costs. We would not recommend delaying your trip for reasons related to pricing. The dollar is stronger against the Euro than it has been in many years and prices are only going up given the debt loads of many companies that had to shut down for two years due to Covid. It would be a mistake to delay this trip.