THE PULSE: Travel Leaders Group Says Dramatic Rise of US Dollar Could Boost Europe Sales Exponentially
WHY IT RATES: Interestingly, Travel Leaders Group CEO Barry Liben noted that agents have been reporting strong Europe bookings prior to the spike in the value of the dollar. The extremely strong dollar, combined with strong advance bookings, could result in an explosive year for Europe.There is, however, one caveat. Although it's been quiet on the terrorism front in the region of late, more attacks in Europe could dampen what otherwise could be a record year. - Claudette Covey, TravelPulse travel agents and travel agencies senior writer
As the U.S. Dollar continued its dramatic rise against most major world currencies, including its highest level against the Euro last week since November 2005, Travel Leaders Group is advising its clients that now is perhaps a historic opportunity to enjoy Europe, along with other major world destinations at a reduced cost from just a year ago. On Friday, January 16, the value of the U.S. Dollar closed at .86439 against the Euro; the last time it came that close was November 12, 2005, when it closed at .85219. With over $20 billion in annual sales volume, Travel Leaders Group is North America's largest traditional travel agency company with more than 6,500 locations and brands including Protravel International, Tzell Travel Group and its flagship Travel Leaders units.
"It's always been a traveler's dream to enjoy seeing the world on a strong dollar. Now Americans are getting their wish - it really is a buyer's market for American travelers. Now is the time to travel to Europe," noted Barry Liben, Travel Leaders Group CEO. "What's particularly intriguing for us as a company is that Travel Leaders Group is coming off a record year in terms of annual sales volume. A large percentage of that was fueled directly by our clients traveling further afield internationally and accepting what they perceived as a 'new normal' in pricing - from higher international airfares to increased hotel costs - much of that determined by the value of the dollar against other leading currencies like the Euro, Pound and Yen."
Liben pointed to findings from Travel Leaders Group's recently released 2015 Travel Trends Survey, conducted prior to the recent spike in the value of the dollar, as a major indicator of what may result from the buying power the dollar now affords.
"Already this year, most of our agents have indicated that their bookings are up year over year and that their clients are spending more," Liben explained. "We expect that this historic shift in the value of the dollar will further increase those sales, perhaps even exponentially."
SOURCE: Travel Leaders Group press release
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