Dollar strength drives travel bargains worldwide as currencies shift

Travelers are finding that the U.S. dollar still buys more in many corners of the globe, even as currency markets shift and economists warn that recent U.S. rate moves could alter exchange dynamics in the months ahead. The Washington Post reported that last week’s Federal Reserve rate cut could weaken the U.S. dollar over time, but today’s prices in several popular destinations remain favorable for visitors who price by local currencies rather than per-dollar costs. Industry observers say the combination of a softer dollar in some regions and ongoing local price discipline is helping guide many travelers toward value-rich itineraries abroad.

Vietnam is widely cited as the top value destination for 2025, with the Vietnamese dong offering substantial purchasing power against the dollar. The exchange rate hovers around $1 to roughly 26,400 VND, making meals, souvenirs and mid-range accommodations more affordable for budget-minded travelers. Mid-range dining frequently falls in the $8 to $20 range, while mid-range hotels commonly sit near 800,000 VND per night, approximately $34, according to travel-management firms tracking the market. The appeal of Vietnam extends beyond the numbers, as travelers picture river cruises, hillside markets and coastal getaways that deliver a high-end experience at a fraction of the cost in many western markets.

Across Asia, Japan and nearby destinations are drawing travelers who want value even as currency weakness has pushed some prices higher. The Japanese yen has fallen significantly over recent years, trimming the relative cost of some experiences for dollar-hardened travelers but also raising the price floor in a few segments. The Japan National Tourism Organization said about 37 million people visited the country in the last year, underscoring ongoing demand despite currency_headwinds. Osaka has been named a best-value stay by the Hotels.com Hotel Price Index, with rooms averaging about $152 per night last year. Tokyo, in contrast, saw room rates up about 12 percent between 2023 and 2024, though many travelers still compare favorably with North American cities for value when considering meals, transport and experiences. Seoul and other East Asian hubs remain popular for their combination of quality dining, convenient transit and affordable day-to-day costs, even as won and yen wander versus the dollar.

Beyond Asia, South America continues to offer comparatively generous value as well, with Argentina cited by travel planners as a destination where a keen eye on budgeting can reap significant savings. Globus travel advisors told The Washington Post that travelers should focus on upfront cost control—accommodations, transportation and tours—to maximize the exchange-rate impact. In the currency-indexed lens, economists frequently cite the Big Mac Index as a simple tool to compare currency strength. In Argentina, the local Big Mac costs about $6.55, notably higher than in some other countries, while in South Africa a Big Mac runs around $2.85. Gabriel Mathy, an associate professor of economics at American University, noted that a dollar can go substantially further in South Africa, suggesting travelers might consider safaris or other regional experiences if the flight budget allows. The Big Mac Index remains a handy, if imperfect, guide for travelers who want a quick read on relative value across markets.

The currency picture is mixed, with some currencies wobbling against the dollar while others have maintained or strengthened their value against the local price level. South Korea, Thailand and other major tourism markets have also seen shifts that affect daily costs, but many destinations still offer affordable dining, lodging and experiences when travelers plan ahead and compare local prices rather than relying on U.S. dollar benchmarks alone. Analysts caution that exchange-rate movements can be volatile and influenced by global economics, policy shifts and market sentiment, so flexibility remains a traveler’s strongest asset.

Travelers are advised to monitor currency trends and consider booking core expenses upfront, then using local options for daily costs. The common thread across these markets is that destinations with lower baseline living costs, strong tourism infrastructure, and competitive hotel and restaurant pricing can deliver the most consistent value for dollar-heavy travelers. While currency fluctuations can alter the value proposition from month to month, the current landscape suggests that well-chosen destinations in Southeast Asia, parts of East Asia, and select markets in South America and Africa offer compelling opportunities for those who shop with an exchange-rate lens and plan ahead.