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CNN Live At Daybreak

Time to Travel Overseas is Now

Aired July 11, 2001 - 08:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
COLLEEN MCEDWARDS, CNN ANCHOR: Well, maybe the economy has got you down for a moment anyway. And I invite you to forget about it. It's summer and it's a great time to travel economically, especially overseas. Valerie Morris has details now on value for your money.

(BEGIN VIDEOTAPE)

VALERIE MORRIS, CNN CORRESPONDENT (voice-over): The slowdown in world economies and the strength of the U.S. dollar are great news for Americans who want to travel overseas.

STEVE LOUCKS, CARLSON WAGONLIT TRAVEL: Fares are down. The price of hotel accommodations is down. The price of cruising is down. Price of packages are down. And you couple that with the strong value of the U.S. dollar in international markets and it really is a bonanza for travelers.

MORRIS: Europe, even the north, is more affordable today because of the dollar's rate against the euro. Also, Australia, South Africa and Indonesia, including Bali, are much less expensive for Americans. Specialists say these destinations may be far, but they're well worth the long journey and costly flights since everything's so inexpensive on the ground.

To help cut costs on accommodations, specialists say check where the local hotels are based. U.S.-based hotels may peg their room rates to the U.S. dollar, meaning there would be no benefit from fluctuating local currencies. U.S. travelers can make the most of the strong dollar by spending it and exchanging it wisely. For example, specialists say use an ATM card to get international currency because those transactions offer the lower wholesale rate.

NATHAN LUMP, "TRAVEL LEISURE" MAGAZINE: Make sure beforehand that your bank doesn't charge you an exorbitant rate. Most only charge about $3 per transaction, which is fine. And you want to minimize the amount of transactions you make, of course, and take out as much money as you feel comfortable carrying at a time.

MORRIS: For larger purchases, use plastic and receive the same wholesale rate without having to carry around a lot of cash and don't forget traveler's checks. Even though they won't give the best exchange rate, specialists say always carry some travelers checks for emergencies.

That's your money. Valerie Morris, CNN Financial News, New York.

(END VIDEOTAPE)

MCEDWARDS: Thanks to Valerie for those tips. But now we want to tell you where the bargains are. For that, we talk to Rudy Maxa, author of "Rudy Maxa's Travel Newsletter" and he, also, runs the Web site, RudyMaxa.com.

Rudy, thanks for being here.

RUDY MAXA, AUTHOR, "RUDY MAXA'S TRAVEL NEWSLETTER": Nice to be with you. Thanks Colleen.

MCEDWARDS: Well, people don't usually think of summer as good time for travel in terms of bargains. Where are the good deals right now?

MAXA: Well, first of all, let's be specific about how strong the dollar is versus most major European currencies because, as you previous noted, the decline of the euro. It came out two-and-a-half years ago at nearly a $1 -- it bought for -- $1.20 to buy one euro. Now, it's like 85 cents to buy a euro. That's, on a percentage basis, an enormous drop.

And 12 major currencies in Europe are linked to the value of euro, which means when the euro falls, the French franc, the Italian lira, the Spanish peseta, the German mark all go down as well. Even the British pound, which is not, right now, linked to euro, has gone to -- has gone down as low as it's been in the last 15 years. So, on overall basis, you've got that thing going on for you in Europe.

However, if you do check into a hotel in London and Paris, you'll be paying less than you were before. But it's still going to be pricey. But if you go outside of big cities and into the countryside, that's where you're really going to realize your bargains. And then you do smart things like shop around for a rental car if you're going to be driving around Europe. For example, your credit card will probably not provide insurance if you rent a car in Italy. But if you fly into Geneva and then drive an hour-and-a-half into Italy, you will be covered. That can save $15 a day. And on a two-week vacation, that's several hundred dollars. So those kinds of things are what you want to think about now so you can save even more.

MCEDWARDS: How to stretch your money. Now, if you're looking at Europe, are there particular places where you would suggest people go, again, not just because of how far your money will go when you get there but what about airfares and just getting there?

MAXA: Well, you'll always find the cheapest airfares in places where there's the most competition flying -- it makes sense -- for example, from major American cities to London, secondarily to say, Paris. You're going to find more expensive fares if you're trying to get into Genoa or Milan or Naples and Italy.

Then there are countries where the economy has been hurting, for example Turkey, which people don't often think of as part of Europe but it certainly straddles Europe and Asia. They've had a -- financial meltdown would be not too strong a word. Inflation is running 40 percent and the lira has been devalued. I was there just two weeks ago and a 20-minute cab ride from the airport to my hotel was $8. And I don't know about Atlanta, but in Washington, D.C. where I live, a 20-minute cab ride usually isn't $8.

MCEDWARDS: Yes, it's about the same here. I got to tell you. Well, what about airlines that people maybe should avoid? I mean Cathay Pacific; its workers are working to rule. There are threats by pilots in France and Britain as well that there may be labor action. Are there any airlines that people, at this point, should really stay clear of?

MAXA: Well, I don't -- the interesting thing about labor actions involving European airlines and some Asian airlines, including Cathay Pacific, is they last for a day. You know, Lufthansa, not long ago, the pilots went on a slowdown 24 hours every Thursday. So, if you keep up with news, you'll be able to tell where the trouble spots are. And if you have a paper ticket, as most people still do on international flights, it's easy to have that transferred to another airline presuming there's a seat available.

I probably should say something about other countries as well. I call them the forgotten countries because news reports have made them undesirable. Jordan, for example, because of civil unrest in Israel, North American tourism is down 40 percent this year compared to last in Jordan.

Those are pictures of the -- one of the great wonders of the world, the ancient Red Rock City of Petra. Here is a wonderful country at peace. Nobody's going. It's just like when, you know, Iraq invaded Kuwait, Americans stopped going to Hong Kong and Paris. Stud missiles had a range of 150 miles in those days.

So, don't not go to Jordan. Don't not go to Egypt. Don't not go to Turkey because of its financial problems. Don't not go to -- go to Ireland. Ireland doesn't have any hoof and mouth disease. But Americans are staying away in droves because it's near England. Don't even stay away England. Don't stay away from Scotland. Those are all destinations where because news reports have filled the evening news screens, Americans are sometimes hesitant to go if they've never been and aren't really geographically shrewd about things.

MCEDWARDS: All right.

MAXA: That's when it's time to go.

MCEDWARDS: Rudy Maxa. Thanks very much for the tips. You've got us using our imaginations a little bit. We appreciate it. Thank you.

MAXA: Nice to be with you. Thanks, Colleen.

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