The U.S. dollar has been steadily sliding against the euro for years, but now that it takes almost $1.50 to buy one euro and more than $2 to buy one pound sterling, it’s finally sinking in with American travelers that a trip to Europe is going to cost a bundle. Paying for a European vacation can feel like buying a diamond engagement ring: Your ballpark budget could easily be two months’ salary.

I recently met with tourism bureau representatives from close to 20 European destinations. Most believe 2008 is going to be the year that tourism from the U.S. either flattens out or drops. Some are facing that probability with resignation, while others are trying to find ways to ease the bite for those carrying battered dollars. If you are a budget-minded traveler determined to visit Europe, you will have to plan carefully and be willing to try something different.

Nontraditional destinations

“Everyone wants to go to Tuscany,” sighed one villa rental representative I met with in November. “We can offer twice the space for half the money elsewhere, but it’s hard to get clients to look beyond the well-known regions.” This sums up one problem that causes a vacation budget to go through the roof: going where everyone else is going.

A willingness to go to less-heralded places is essential to bringing down the cost on the other side of the Atlantic. Whether you are renting a villa or staying in hotels, these destinations will nearly always cost you significantly less. Head to Eastern Europe instead of the West. Try a Greek island none of your neighbors has heard about instead of Santorini or Mykonos. Ski in the Alps of Slovenia instead of Austria or Italy. With any of these strategies, your total cost can easily drop by a third or a half.

As I noted in an earlier column, rural areas are almost always easier on the budget than capital cities. Visit Moravia instead of Prague, the English countryside instead of London, or the towns of Andalusia instead of Barcelona. If you are heading to Croatia because it’s suddenly “the hot place to go,” or if you plan on following the 75 million vacationers visiting France each year, plan on paying top dollar.

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