What The Falling U.S. Dollar Means For Your Summer Vacation Abroad

Let's say you're planning a trip abroad and have the whole itinerary planned out. You're going to fly into a chic airport, drop by a famous landmark, scour a culture-rich museum, and eat a local specialty that everyone swears is the most authentic one — and that's all before 4 p.m. As you pull up the websites and start to book your vacation to a destination where the U.S. dollar goes far, you may see that traveling abroad isn't as budget-friendly as you thought. Before doing anything, you've got to check the value of the U.S. dollar to see its worth in other countries, especially when it has been trending down since March 2025. Exchange rates rule your trip budget, whether it's your summer vacation on the line or a trip to visit one of your bucket-list destinations.

This is a sad but true statement unless you were one of the fortunate few who booked flights and hotels back in mid-January when the dollar was at its strongest in 2025. For everyone else, there are still options on the table to make your summer trip work. Start by researching the USD exchange rate to see how the dollar stacks up with the currency at your destination. You might want to choose a different location where the rates work in your favor. If you already have your vacation planned, you'll have to either expand your budget or reduce your overall expenses relative to the current dollar depreciation, which was about 10.6% lower on May 20 than the peak mid-January (per Reuters). To cut costs, try to take a trip during the off-season or opt for a staycation. In any case, don't delay because things will likely get worse.

Folks who want to blow the bank for their summer vacation don't need any advice from us, but trimming your budget requires a good amount of research. Say you wanted to visit Australia and take your dream vacation along the Great Barrier Reef, perhaps in the lesser-known Keppel Islands. While the U.S. dollar is down against the Australian dollar, the change isn't currently as significant as other countries at the time of this writing. Here, you might just have to budget a few fewer cocktails per day.

Choosing a different vacation spot also requires researching currency exchanges. Since one euro costs more than a dollar and the rate has been very inconsistent lately, it might be best to avoid the continent. Instead of visiting Venice, Italy, you can always go to the "Venice of Mexico" in Xochimilco. If you're set on having a Euro trip that's not too far from home, check out Aveiro, the "Venice of Portugal," as the country is one of Europe's most affordable outside Eastern Europe.

As for changing vacation dates, it's technically not a summer vacation if you don't go during the summer. But even tweaking the dates by a week or two can sometimes make a huge difference. Bear in mind that even though summer is the high season in many places, that's not true everywhere. For example, in most parts of India, the high season runs from November to December, so you'll find cheaper prices during other months of the year, although you'll have to put up with a lot of heat and rain, too. 

While a staycation might not sound like the most thrilling option, it's still better than commuting and working, right? So don't let summer 2025 pass without taking the trip you need.