Save in Europe, despite a weak dollar

While Europe has never been the cheapest place for North Americans to visit, there have long been affordable ways to see the Continent. But with the dollar recently hitting an all-time low against the euro and British pounds trading at nearly $2 each, Europe looks like a budget traveler's worst nightmare. It doesn't have to be.

Don't let the falling dollar bring you down. Use this guide to help you save on everything from airfare to currency exchanges. Scroll down or click on one of these links to jump to your desired topic:

Getting there
Getting around
Money, food, and entertainment

Getting there

Where to go

While some of Europe's most popular destinations are also among its priciest, saving strategies can help contain your costs, even in these top-euro places. For example, in London—frequently ranked the most expensive city in Europe—SmarterTravel.com's Molly Feltner found a pension-style hotel with comfort and privacy for under £50 per night. During the day, she toured London's museums, many of which have free admission. Prefer to go Dutch? Read associate editor Erica Silverstein's advice on budget travel to Amsterdam. Outside of Europe's most well-traveled routes, you're apt to find even more bargains.

Europe travel expert Rick Steves advises us to "travel faster in the more expensive north and hang out in the cheaper southern and eastern countries." In the sunny south(west) lies Portugal, which SmarterTravel.com's Anne Banas escaped to for under $500, including flight and hotel. And while the European Union's eastward expansion threatens its 10 new nations' status as budget travel meccas, none of the new countries has adopted the euro yet, and prices continue to lag behind those in the West.

When to go

Summer is the high season for most European destinations. During this time, when accommodations are scarce and airfare is at its peak, you're likely to pay maximum prices. The most attractive rates will require a hardy spirit and warm clothing, as they tend to be in the dark of winter. That said, Europe doesn't shut down in its low season, and you'll avoid the crowds in most spots. Savvy travelers often split the difference and head across the pond during the shoulder seasons—the late spring and early fall—when the weather's pleasant and the prices are reasonable.

When to book

Once you've decided when to go, how do you know when to make your reservations for the best deal? Writing in his Gemutlichteit Europe Travel Alert, Bob Bastor recommends booking airfare as early as possible for the best prices and dates of travel, if you want to travel during the high season. He specifically warns against waiting for a sale that might never come, so buying your summer travel sooner is the safer bet. If you decide to go at another time of year, booking later may actually help you net a good deal. Read more about when to book from SmarterTravel.com's Jessica Labrencis.

Vacations

In general, one of the most effective ways to save on your overall travel costs is by purchasing your airfare and accommodations as one package. As Joe Dugan of EuropeASAP notes, buying a bundled vacation may be even more cost-effective in 2005, since some vacation providers (e.g. EuropeASAP) are offering their packages at 2004 prices. This is potentially excellent news for travelers, as agencies are paying more for everything they buy in Europe, but not passing the extra costs on to customers.

If you do decide to book a package, the specifics of the deal will also play a key role in how much you save. If a full breakfast is included, that will mean one less meal per day to buy out-of-pocket. On the flip side, as USA Today's Laura Bly points out, some providers may have currency surcharges that you'll have to pay if the exchange rate worsens. Make sure to look at the fine print for both benefits and warning signs before you buy.

See SmarterTravel.com's Vacation section for the latest offers, or read our Western Europe vacation booking guide to learn how to find the best deals.

Hotels and more

If you'd rather arrange your own accommodations in Europe, it's not necessary to spend a fortune on luxury lodging. In fact, there are a number of choices, including B&Bs, dormitories, farm stays, pensions, and vacation rentals. Each of these has its own merits and potential disadvantages. For instance, while vacation rentals can put you and your companions in a Tuscan villa, such a property usually requires a longer stay and will cost more if you're not sharing it with enough other people. At the other end of the scale, university dormitories may be among the cheapest beds in Europe, but their simplicity (and possible shared bathrooms) aren't for everybody. Read more about all of these hotel alternatives in Molly Feltner's article Five options for cutting hotel costs on your Europe vacation.

Getting around

Air travel

Unless you're very lucky, one of your biggest expenses when traveling to Europe will be airfare. On the bright side, buying your flight on this side of the Atlantic means that you'll be spending dollars on it. Since much of the rest of your trip will require foreign currency, getting a good deal on airfare will leave more in your pocket for later. If you'll be traveling extensively within Europe, don't waste money getting back to where you started just to make a return flight. Instead, it may make sense to buy an open-jaw ticket, which will allow you to fly into one city and then back home from another. Columnist Jill LeGrow discusses open jaws and nine other budget travel tips in her Backpackers' Europe: The top 10 ways to save.