Budget-friendly destination dupes as the dollar sinks 12% against the euro

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The U.S. dollar fell around 12% this year against the euro after hitting a high on Jan. 6. The currency hovers around .86 euros to $1, meaning that Americans pay $1.17 for every euro they spend on vacation. At least one big bank doesn't see that changing anytime soon, but travelers looking for a European feel to their getaway have cheaper options close to home.

Bank of America sees the euro climbing as high as $1.20 as the United States faces elevated inflation numbers and the possibility of Fed rate cuts. The euro hasn't been that strong against the dollar since 2018. That pressure results in a change to American booking behaviors.

Price and complexity drive change

American consumers, already facing increased prices at home as tariffs take effect, seek affordable alternatives without sacrificing old-world charm. Tour operators report a surge in U.S. bookings, reflecting a desire by vacationers to reduce friction as well as save money.

Heritage Inspirations, a New Mexico tour operator, expects 2026 bookings to be 25% higher than 2025. "We typically open bookings for the coming year in November, but we're adjusting our schedule this year to meet this surge in demand," says CEO and founder Angelisa Murray.

Americans who travel this fall to any of the 29 European countries in the Schengen Area face a new requirement prior to entry. Starting Oct. 12, visa-exempt visitors like American citizens will be photographed and fingerprinted for security and tracking purposes.

In late 2026, Americans will need to apply for an ETIAS travel authorization before entering the E.U. The authorization costs 20 euros and will be valid for three years or until your passport expires, whichever comes first.

Perceived complexity drives increased sales for Tauck, an upscale guided travel operator. "Sales for U.S. tours in 2025 are outpacing the past two years, and 2026 bookings are pacing 8% ahead of 2025 year-to-date. Many of our 55+ customers appreciate the ease of domestic travel, especially with geopolitical headlines causing confusion and some perceived friction with overseas travel," says Julia O'Brien, vice president of marketing.

Murray attributes the growing interest in New Mexico to visitors seeking immersive, authentic experiences without traveling far. Luckily, travelers who stay closer to home don't have to resign themselves to a ho-hum vacation. From natural beauty to buzzy nightlife, these four destinations offer a European feel without the currency shock.

Swap Ibiza for Los Cabos

Ibiza, the perennial playground for fun-loving travelers, is renowned for its nightlife, beach clubs and rocky coastlines. Los Cabos, Mexico, made up of the towns of Cabo San Lucas and San José del Cabo, similarly boasts dry, rocky landscapes that give way to golden sand and brilliant blue water. Pair that with its award-winning restaurants and lively yacht scene, and you have a little slice of the Mediterranean just south of the border. Unlike Ibiza, however, the relative strength of the dollar against the peso makes for an affordable vacation.

Los Cabos shares a reputation with Ibiza as a buzzy destination popular with celebrities. Record-breaking visitor numbers in the first half of 2025 show that Los Cabos is squarely on everyday Americans' radars as well. An ever-expanding number of flights from the U.S. make it easier than ever to reach, and investments in infrastructure make it a world-class destination unrecognizable from the sleepy beach town it was just 15 years ago.

Visitors to Los Cabos enjoy a variety of lodging options and price points. In winter months, hop on a whale watching cruise to spot humpback and grey whales. Brush up on your tequila knowledge with a curated agave tasting that goes far beyond tequila at Waldorf Astoria Los Cabos before letting loose with a view at the area's highest rooftop bar, Rooftop 360 at Corazón Cabo. Relax and recover the next day with a spa treatment at your resort or from one of the many vendors on Medano Beach.

Swap Comporta for Cape Cod

Comporta, Portugal, is one of Europe's hottest beach destinations, dubbed the Hamptons of Europe. For those looking to escape the high prices of Europe and the Hamptons, look north to Cape Cod. Not only a budget destination, this string of small towns in coastal Massachusetts offers something for everyone.

Base yourself in Harwich, where a stay at Wequassett Resort & Golf Club covers all the bases. Relax at the beachfront pool or take the resort's private boat charter to a deserted stretch of the Cape Cod National Seashore. Its sandy dunes and pitch pine trees mirror Comporta's lauded landscape.

Head north to explore the arts scene in Provincetown, echoing Comporta's growing cultural cachet. Finish the day with Cape Cod's famous seafood, another similarity between the two regions; for a memorable evening, book the private clambake on the beach at Chatham Bars Inn.

Swap Ireland for the Pacific Northwest

Think Ireland and you picture wild, natural beauty and lush, green landscapes. Beyond its legendary hikes, tourists head to Ireland for its water activities, vibrant arts and music scene and emphasis on local cuisine. Visitors to the Pacific Northwest enjoy the same access to the outdoors, fresh and local food and talented artisans with just a short domestic flight.

Start in Seattle and travel up to glimpse whales on San Juan Island, or explore the Oregon coast like Michelle Goth, food and travel writer at Blackberry Babe. "I woke each day to fog curling over the cliffs and the sound of crashing waves below. The wild beauty of the rugged shoreline combined with charming coastal towns made for an unforgettable trip," she says.

Swap Paris for Mexico City

Visitors looking for the world-class museums, cafe culture and ample green spaces of Paris may be surprised to find an alternative in Mexico City. Inspired by the urban renewal program in Paris led by Georges-Eugène Haussmann, leaders in the 1800s modernized the capital city to include wide boulevards and Belle Époque architecture reminiscent of the City of Light.

Today's travelers enjoy the National Museum of Anthropology, home to the world's largest collection of Mexican antiquities. Stroll through nearby Chapultepec Park, nearly as large as Paris's Bois de Boulogne, and work up an appetite for Mexico City's best restaurants. Amble through trendy neighborhoods like Roma Norte, Condesa and Polanco for boutique shopping and dance the night away at one of the many salsa clubs in Roma Norte.

Trade out, not down

The dollar has dropped against the euro in 2025. With the euro expected to rise further, travelers rethink plans and tour operators already see the change in booking behaviors. But skipping Europe's high prices doesn't mean losing out on culture, gastronomy or natural beauty. From Cabo to Cape Cod, these smart swaps offer the best of both the old world and the new.

Ashley Wali is a Seattle-based travel journalist and curator of Wanderlux, specializing in luxury family travel, sports tourism and wellness travel. She shares stress-free family trip planning advice to make luxury travel affordable and approachable.