Travelers may have heard this from veteran nomads: traveling on a budget is similar to investing -- one must stay vigilant to all factors that could appreciate or depreciate a destination's appeal. Money is a factor in travel -- without enough savings, travelers could fail to maximize their vacation. Often, travelers overlook new trade policies, tariffs and currency fluctuations, items affecting their budgets directly without warning.
Currency fluctuations could work against or in favor of tourists. Today's tourists in Britain are motivated to spend because of the record lows of the pound sterling's value. Shopping tourists flock to Britain as UK export companies find profits soaring overseas. On the other hand, British tourists now could find their favorite accommodations, restaurants and bars in Europe or somewhere in Singapore more expensive than it were in 2014.
Travelers must pay attention to drastic currency fluctuations when making their budgets. They must also pay attention to civil and economic situations in their destination and in their own country. An anticipation of a possible higher exchange rate where their originating currency is weaker should mean a better overhead fund for their travel expenses.
Chron Business wrote a great explanation about fluctuating currencies affect tourism economies. An appreciation of a local currency could help travelers enjoy more and encourage spending. In turn, destination countries earn bigger profits. Depreciation of local currencies could mean a drop in a destination country's luxury vacations as travelers prefer domestic tours and other affordable means to take trips.
Paying attention to international politics can play a huge role in your budget -- particularly on areas where you can save. An Economist post regarding EU's sanctions against Russia's actions in 2015 suggested it was a great year for Russian tourism because of the sanctions themselves. The post indicates Russia's tourism economy would improve because its local Ruble had decreased in value with immense investor pullouts during the same year. Developing nations are affordable for developed nations simply because of the stronger currency of developed nations.
