Should we be panicking?...the dollar has done this before hasn't it?
Isn't it a bit spooky that all the hype is happening just before the build up to the dreaded Christmas obscene overspend and over indulgence?...
Are the marketing men at it again...what is the consensus of opinion am I just too cynical?
US Dollar v Euro & Sterling
Good for owners in Florida!
I assume a weak dollar is great news for owners in Florida who pull the UK/European market, assuming they work their prices and costings in dollars. Their rentals must seem cheaper than ever!
Everything I've read says the US government is prepared to let the dollar slide even further because it's stimulating exports. I assume this will knock the European holiday market this year as more of us flock to a cheap US, while Americans find European destinations even less affordable.
Tansy - was there anything in particular you were hinting at?
Rich
Everything I've read says the US government is prepared to let the dollar slide even further because it's stimulating exports. I assume this will knock the European holiday market this year as more of us flock to a cheap US, while Americans find European destinations even less affordable.
Tansy - was there anything in particular you were hinting at?
Rich
No I wasn't hinting - I guess I am just weary of the huge hype that surrounds Christmas - I find the whole thing so gross in over consumption - it seems to me a con - now the shops are reducing prices by 50% all ready and folk flocking to USA to shop - it's all debt as well - I just wish the meaning of Christmas came back a bit....the cynicisim of the displays etc enticing folk to overspend I find difficult at times.
I used to love it all - don't get me wrong we have the house all done up - pratical present each & a special meal...I'm not a humbug!
What taught me, I was humbled when so not very well off friends came over one Christmas - obviously spent a complete fortune on useless presents on us and their family back in the UK - probably over compensated from guilt at being in France - then it took them over 9 months to pay off the credit cards...I felt dreadful and now I just see it all for what it is - tempation at it's most cynical.
That is why I posed the question - is it just a festive glitch we see with the dollar - or should we be making inroads into other marketing strategies? We probably had 10 weeks from Americans last year...our Canadians have rebooked for next year already.[/i]
I used to love it all - don't get me wrong we have the house all done up - pratical present each & a special meal...I'm not a humbug!
What taught me, I was humbled when so not very well off friends came over one Christmas - obviously spent a complete fortune on useless presents on us and their family back in the UK - probably over compensated from guilt at being in France - then it took them over 9 months to pay off the credit cards...I felt dreadful and now I just see it all for what it is - tempation at it's most cynical.
That is why I posed the question - is it just a festive glitch we see with the dollar - or should we be making inroads into other marketing strategies? We probably had 10 weeks from Americans last year...our Canadians have rebooked for next year already.[/i]
Tansy,
I am not an economist, and it wouldn't make any difference if I were because nobody really knows what is going to happen to the dollar, but there is a view I see expressed that the dollar will continue to weaken against the pound and euro. This is not necessarily a bad thing for the US because it would reduce the massive outflow of dollars to pay for imports - as imports become more expensive, Americans will start buying home-made goods. Then the dollar will strengthen again.
For owners in Europe who rely in part on American guests, this is not a good development. So to answer your question, yes you should be spreading your marketing to target other markets, in particular mainland Europe I would suggest. It's always a good idea to do this and not put your eggs in one basket.
I read that in 2002, post-9/11, American visitors to Europe dropped 40%. In 2003, they picked up 20%. This year, no figure yet. It's fair to assume than in 2005 they will go down again because of the weakness of the dollar.
That said, I have got a lot of bookings from the US for next year, more at this time of year than ever before. Go figure!
I am not an economist, and it wouldn't make any difference if I were because nobody really knows what is going to happen to the dollar, but there is a view I see expressed that the dollar will continue to weaken against the pound and euro. This is not necessarily a bad thing for the US because it would reduce the massive outflow of dollars to pay for imports - as imports become more expensive, Americans will start buying home-made goods. Then the dollar will strengthen again.
For owners in Europe who rely in part on American guests, this is not a good development. So to answer your question, yes you should be spreading your marketing to target other markets, in particular mainland Europe I would suggest. It's always a good idea to do this and not put your eggs in one basket.
I read that in 2002, post-9/11, American visitors to Europe dropped 40%. In 2003, they picked up 20%. This year, no figure yet. It's fair to assume than in 2005 they will go down again because of the weakness of the dollar.
That said, I have got a lot of bookings from the US for next year, more at this time of year than ever before. Go figure!
Paolo
Lay My Hat
Lay My Hat
Tansy,
This is not related to Christmas. I'm told it's going to take about a year to correct. My crystal ball is no better than anybody else's but it's currently around $1.90 and still sliding. I wouldn't be surprised to see it at $2.40.
The EU seeks intervention by central banks to hold up the $, in the same way they held up the Euro a while back, but not everyone is convinced it's going to work. It's not going to happen anyway while the US wants to attract more foreign investment and needs to keep $ at home. They like it this way for now.
There's a fairly good summary of the fundamentals at http://news.bbc.co.uk/2/hi/business/4064629.stm
And you thought you were in the business of renting a vacation home, not a FOREX trader!!!!
Regards,
Joanna
This is not related to Christmas. I'm told it's going to take about a year to correct. My crystal ball is no better than anybody else's but it's currently around $1.90 and still sliding. I wouldn't be surprised to see it at $2.40.
The EU seeks intervention by central banks to hold up the $, in the same way they held up the Euro a while back, but not everyone is convinced it's going to work. It's not going to happen anyway while the US wants to attract more foreign investment and needs to keep $ at home. They like it this way for now.
There's a fairly good summary of the fundamentals at http://news.bbc.co.uk/2/hi/business/4064629.stm
And you thought you were in the business of renting a vacation home, not a FOREX trader!!!!
Regards,
Joanna