Europe Will Cost More

For traveling Americans, Europe will cost up to 20% more this year than last. The primary reason is the devaluation of the dollar; in addition, most European currencies have been revalued upward. The combination of the 8.6% dollar devaluation and an average 4% upward revaluation of European currencies leaves the dollar with about 12% less purchasing power than last year. On top of that, inflation in Europe has added to the costs.

Although transatlantic air fares and American Express tour prices are about the same as last year, almost everything else has shot up. In London, a double room at the tony Dorchester is $48.80 v. $41.70 last year. The rate for a medium-range London hotel has been boosted from about $18 to $23. In Paris, a traveler paying in dollars could get a double room at the Ritz for $54 last year; this year the tab comes to $65. A double at the Hilton in Paris has jumped $15, to $53. Even the price of a bed in German youth hostels climbed, from 85-c-to$1.12.

Eating out is also higher. London and Paris restaurant meals in dollar terms have jumped 18%. Dinner for two at Madrid's Horcher Restaurant now averages $19, up $4 from 1970. Yet smorgasbord unlimited at the Hotel Norge in Bergen remains one of the world's great gourmet bargains: it has risen only from $4.50 to $4.90.

Culture also costs more, as do fun and games. Top tickets for the Stuttgart Ballet have risen from $8 to $9, and for one Wagner Festival performance in Bayreuth they have climbed from $28.60 to $31.75. Spanish bullfights are up roughly 8%, to $14 for the choice, shady seats.

The prospect of higher prices has not quenched Americans' wanderlust. Last year close to 3,000,000 Americans visited Europe, and travel-industry leaders expect about a 10% gain this year. For those who do go, moneymen offer some advice for stretching dollars. First, carry traveler's checks, which command a better exchange rate than cash does. Second, convert money at banks, which pay more for dollars than hotels do. Finally, pay immediately for foreign purchases rather than charge them. If the value of the dollar weakens further, the bill, when finally presented, may well be higher than expected.

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