A U.S. ski vacation has been out of the question for Caroline Boller in recent years, but the 27-year-old Austrian is finally going to the Rockies.
“It’s never been so cheap before,” she said, referring to the exchange rate.
The weak U.S. dollar, falling to record lows against the euro, is making American slopes more affordable to Europeans who have opted for the Alps in past years.
Canadians who previously found a ski trip south of the border too expensive are also now headed for U.S. slopes, while Americans who used to ski in Canada for the price advantage are now staying home, Vail Resorts spokeswoman Kelly Ladyga said.
Vail Resorts, the second-largest North American ski resort operator, saw double-digit growth in international visitors in the 2004 ski season, and is expecting double-digit growth in the 2005 season.
“We are in negotiations with a tour operator to add a charter flight from London to Denver for the next season, to cope with the additional demand,” Ladyga said, adding that the demand was driven primarily by the exchange rate.
Vail, which has traditionally viewed the British as a “very important market,” has stepped up its marketing efforts to Great Britain, increasing expenditure in the double-digit range.
The Travel Industry Association of America estimates that international arrivals to the United States, after falling steadily for three years, were up 7.5 percent in 2004 and will rise almost 5 percent in 2005.
Arrivals from Europe rose 15 percent in the months January through September 2004 from a year earlier, TIA spokeswoman Cathy Keefe said.
No bruises for cruises
The falling dollar is also benefiting the cruise industry. Americans wanting to see Europe have been booking all inclusive cruise packages, paid in U.S. dollars.
“They don’t have to worry about flying in and then having to pay for the hotel and the food and everything else in European currency,” Jason Sheets, director of cruises at Travelocity, said in an interview. “The cruises are much cheaper, because all of that is already taken care of, and it’s in U.S. dollars.”
Royal Caribbean, the world’s second-largest cruise group, has increased its capacity in Europe by 35 percent from a year earlier, to meet the increased demand in 2005, Sheets said. North Americans traveling to Europe will be making up for more than 90 percent of that capacity.
Carnival to add capacity
P&O Princess Cruises, a brand of Carnival Corp., the world’s biggest cruise operator, said it was adding 60 percent capacity to Europe this year — the largest capacity commitment to Europe in its history. More than 75 percent of that capacity will be North Americans touring Europe.
“This year, a European cruise allows passengers to see various parts of Europe with minimal exposure to the weakness of the U.S. dollar,” said Jan Swartz, spokeswoman at Princess. ”All their lodging, most of their meals, short excursions, entertainment, are all bought as part of the package, in U.S. dollars.”
Boller, excited about her Colorado ski trip, said she was hoping the dollar would fall further or at least stay down. “If it falls more, I’ll come back next year, and maybe go skiing on your eastern coast.”
