Good time to go to Britain!

The dollar is at a 7 year high against the pound. Too bad it's so cold right now...there are great airfare deals out there, and I might be tempted to go again!

Go for it!

Carol,

We just got back from France. Temps ranged from 20-45 while we were there but be had our jackets and warm clothes.

We walked through the American Cemetary and walked down to Omaha beach and saw not a single soul. No traffic tie ups. No crowds.

It would have been nicer in the spring but still worth the trip and no crowds.

2 Bus class FF tickets and 2 coach FF tickets one month out on the same flights except for one segment. 2 bookend weeks at the Marriott outside of Paris.

Short

Sounds like a great time to me. I will have to look into going soon.

Or buy a bunch of British pounds now, and use them later when you go.

British Air is running a special rate right now that includes 2 free nights (w/2 airfares) in a number of hotels. The rate itself is discounted, as well.

I'm going in mid-March--we got 5 nights at the Holiday Inn Regent's Park for $59/night on Hotwire. OK, not the very poshest hotel in London, but great location and unbelievable price, compared to what we've been paying the past few years.

Hoc said:

Or buy a bunch of British pounds now, and use them later when you go.

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We are going on August. Do you think this is a good idea?

Jen

Good idea?

The dollar rate against the pound could improve even more. It is anyone's guess whether the decline of the pound will stall or recover. (If only Gordon Brown had some of the charisma of the new US President!)

Coming to the UK is a great idea. It is likely to be a good deal this year whenever you decide to change your money.

w879jr1 said:

The dollar rate against the pound could improve even more.

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It could. But think of it this way: The dollar is probably artificially high due to exuberance over the change of administrations. In addition, a lot of money is being spent through the recent TARP legislation, and more is likely to be spent in the stimululs package due to be passed by President's Day.

That means that the U.S. is printing up a lot of money that it does not have. No judgments on this -- I don't want it to be political. But the printing of excess money backed by nothing in real value is likely to cause a devaluation of the dollar, i.e., inflation. That means that, at some point, likely in the next year or two, the value of the dollar is likely to decline drastically. Are we at the top of the dollar's value right now? Not likely. But I wouldn't try to time the peak. My feeling is that the value is good right now, so it's a good time to stock up on Pounds if you visit Britain fairly regularly.

That said, don't discount the weakness in the British monetary system. Its banks have been trashed, and it is likely to Nationalize some, like the Royal Bank of Scotland. So, that could lead to further weakness in the Pound.

All I know is that the Pound costs me 25 percent less than it did last summer, so to me, that's a good time to stock up. If you want to be conservative, dollar cost average in. In other words, buy a couple of hundred dollars worth now, another couple of hundred in a month or two, and so on until you have enough to get you through your next couple of English vacations. That's what I'm probably going to do.

Hoc said:

... the printing of excess money backed by nothing in real value is likely to cause a devaluation of the dollar, i.e., inflation. That means that, at some point, likely in the next year or two, the value of the dollar is likely to decline drastically...

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I agree that there is some risk; however, the money being spent is actually back-stopped by "something," i.e. T-Bills. If those scared out of the stock-market and for'ners (like the Chinese), keep buying promissory notes from the Treasury Department at incredibly low rates, it will mitigate the risk of inflation and keep the dollar relatively stong. Granted, its a big "if."

The more immediate threat, IMO, is deflation. Declining and deferred consumer spending will keep the economy sputtering for years to come. Folks will put off buying today what will be cheaper tomorrow, stores will buy less, providers will produce less, and more people will be laid-off. I'd like to think that at some point, pent up demad will kick in, but unless folks have money in their pocket (not merely credit cards), it'll be a while before anyone can increase their prices for anything.

In July 2008, the pound was $2.08. In September when it went to $1.75, we thought it a good deal and bought our second week at Melfort Club in Scotland. Pound continued to drop. Last month, we paid our MF for the two weeks and got a rate of $1.51. Today the rate is $1.36 and we have two weeks MF to pay for our Broome Park units. Needless to say, it's a crap shoot as to what it will be in the future, but we are going to pay for BP very soon. If it gets to $1.04, it will be the rate when we made our original purchase 25 years ago. Could that happen? Needless to say, I am annoyed that we paid $1.75 but that's the risk one takes in this crazy market.

I paid my 2010 annual fees at Allen House today. I'll probably continue to buy about 250 pounds every three months until next year July, unless the dollar falls significantly relative to the pound. So, by the time I go next summer, I'll have about 1,500 pounds for the week, which should do us fine. I'm doing the same thing with Euros, Canadian Dollars and Korean Won, because we have trips scheduled to all of those places within the next 2 years. Thinking of paying off my 2010 Aussie timeshare fees early, as well.

w879jr1 said:

Coming to the UK is a great idea. It is likely to be a good deal this year whenever you decide to change your money.

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IMO, going to UK in late May will be the best time... If you have tickets to see one of Eric Clapton's concerts at Albert Hall... as I do.

What's the best way to purchase foreign currency? I also would like to buy pounds and euros for future trips. Should I just go to my bank and request they get me some Euro and Pound notes, or is there a better way? How much commission should I expect to pay? Thanks.

-Bob

Blues said:

What's the best way to purchase foreign currency? I also would like to buy pounds and euros for future trips. Should I just go to my bank and request they get me some Euro and Pound notes, or is there a better way? How much commission should I expect to pay? Thanks.

-Bob

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Your credit union probably has the best rates. I just get mine through Wells Fargo, since their rates are pretty good (right now, about $1.40 per pound), and they don't charge additional transfer fees. You could get Traveler's checks if you get them for free. Also, if you're dealing in big volume, there are mutual funds that track the value of foreign currencies, so you can buy 100 shares of the pound fund for $13,600.

Blues said:

What's the best way to purchase foreign currency? I also would like to buy pounds and euros for future trips. Should I just go to my bank and request they get me some Euro and Pound notes, or is there a better way? How much commission should I expect to pay?

Click to expand...

"They" say that the best way to obtain foreign currency is by using ATM's in the country you are in.
However, I like to arrive with enuff local currency in my pocket to hit the ground running. Most suppliers build their commission and credit card fees into their exchange rate, which can differ significantly. So check with a number of different sources (including your bank). I just checked these. I input 670 GBP for each and obtained the quotes in parentheses (including delivery).

Wells Fargo Foreign Currency: https://www.foreignexchangeservices.com/ ($967)
Oanda FX Delivery: http://www.oanda.com/products/fxdelivery/ ($1020)
Int'l. Currency Express: http://www1.foreignmoney.com/ ($1,041)
Travelex Foreign Currency: http://www.travelex.com/us/ ($1042)

Wells Fargo has consistently given me the best results, but I'd be interested to hear what other sources folks have used.
------------------
From a SNL skit by Eric Idle:
"You know, there's one thing we English have always loved above all of you Americans, and that is... your money. We have a thousand-year history... you have the money. We have the literature, the poetry, the traditions... you have the money. We have the buildings, the paintings, the gardens, the palaces... you have the money. And that's why we are here tonigt. We are going to hold a telethon for England. If you wish to plesdge money for England, an ancient charity, here is the number to ring: 555-1066."

Euro / Pound

I thought Britans used euros.

Is the dollar strong against the euro? I want to plan a trip to Venice within the next year or two and this could really motivate me!:whoopie:

Neesie said:

I thought Britans used euros.
Is the dollar strong against the euro? I want to plan a trip to Venice within the next year or two and this could really motivate me!:whoopie:

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England, Scotland + Northern Ireland use British Pounds. Ireland uses Euros.
Currently, $1.00 will buy you 0.77 Euros. That's significantly better than in early 2008, but down from its highs in October + November (0.80 euros). Recently, its been rising and may test its highs from last Fall.
See: http://www.x-rates.com/d/EUR/USD/graph120.html

Neesie said:

I thought Britans used euros.

Is the dollar strong against the euro? I want to plan a trip to Venice within the next year or two and this could really motivate me!:whoopie:

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The polls in the UK show the British people strongly oppose adopting the euro in place of the pound. The people of Denmark and Sweden have been allowed to vote on whether to dump their local kronor for the euro, and the voters of each have voted to keep their independent kronor. The people of Norway voted down the EU in its entirety, including the euro, and they still use thier own kronor. Switzerland is not in the EU and uses its own franc (or frank as it is spelled in the German-speaking part of the country). Most of eastern Europe also used their own forints, zloty, lei, crowns, etc. but are eventually required under thier EU accession treaties to switch to the euro.

Even in Italy, a cabinet minister in the last Berlousconi government floated the idea of abandoning the euro and reintroducing an independent lira.

Many years ago, one could use AAA to buy pounds, French francs, Swiss francs, Dutch guilders, and German marks denominated travellers checks at very good rates and as an AAA member without fees. The problem was in using them in Europe, as few merchants in these countries take them. One had to find the Amex office to cash them in, again without fee. After the euro came out, I tried this again, but the exchange rate was terrible. I have checked once since with the same result. In the old days, this was a good way to lock in an exchange rate when the dollar was on an upward path, but it does not seem to work any more.

The local banks I have checked rates with in North Carolina in the past give awful exchange rates, and it would be poor value to change money ahead of time with them.

Having money on hand when I arrive has never been a problem. In the UK, when I arrive at Gatwick, I use plastic (CapOne) to buy a rail ticket to Victoria Station, then walk outside the station across the street to a currency exchange office that always has great rates and no commission and change cash there. The exchange offices inside the station are another matter, as they have bad rates, high commissions, or both.

If you really need money at the airport, you can usually find exchange offices with bad rates and/or high commissions at most European airports (Zurich is an exception - good rates in both terminals and no commision in one of them). There are usually ATM's but beware of machine owner fees on these. Also almost all airport shops, including fast foods will take dollars and give change in local currency, usually at not that great a rate but at least without a commission. This can be an option for small amounts of local currency. Airport exchange offices in US airports offer bad rates and/or high commissions.

In the UK, many bank ATM's do not charge a machine owner fee, and they usually tell you that on the screen. Elsewhere in Europe that may be a crap shoot unless you use a guidebook that tells you which banks charge what on ATM's. In Greece, for example, all bank ATM's do charge a user fee on ATM's but they vary, so you need to look out of the banks with the lowest fees.

The other thing to watch out for with ATM's is the fee that your bank charges. They do this two ways, a percentage plus a flat fee per use. The per use charge at my two Credit Union accounts is 75 cents and the percentage charge is 1 percent. The bank I still use, but will probably close out, charges $3 flat fee per usage plus 3%.

Are ATM's the best? Not here in eastern Europe. Exchange offices here almost never charge a commission, and rates are great. I can often change currencies at within one half of a percent of the mid-market interbank rate, and occasionally even get a better rate than the interbank rate. Sometimes even a double conversion offers a better deal at exchange houses here than ATM's. Recently I needed some Swiss francs to pay a bill in Switzerland but was not going to be travelling there. In converting dollars (the currency I am paid in) to local currency, I got a rate within a bit less than half a percent of mid-market interbank rate, and when I went to convert that local currency to Swiss francs, I got a rate almost a full percentage point BETTER than the midmarket interbank rate. So on that double conversion, using exchange offices, I came out almost half a point better, on net, than the interbank mid-market rate. The same is no longer true in most of western Europe. Since the euro came in, the rates at the exchange offices have gotten much worse than in the days of national currencies.

Talent312 said:

"They" say that the best way to obtain foreign currency is by using ATM's in the country you are in.
However, I like to arrive with enuff local currency in my pocket to hit the ground running. Most suppliers build their commission and credit card fees into their exchange rate, which can differ significantly. So check with a number of different sources (including your bank). I just checked these. I input 670 GBP for each and obtained the quotes in parentheses (including delivery).

Wells Fargo Foreign Currency: https://www.foreignexchangeservices.com/ ($967)
Oanda FX Delivery: http://www.oanda.com/products/fxdelivery/ ($1020)
Int'l. Currency Express: http://www1.foreignmoney.com/ ($1,041)
Travelex Foreign Currency: http://www.travelex.com/us/ ($1042)

Wells Fargo has consistently given me the best results, but I'd be interested to hear what other sources folks have used.
------------------
From a SNL skit by Eric Idle:
"You know, there's one thing we English have always loved above all of you Americans, and that is... your money. We have a thousand-year history... you have the money. We have the literature, the poetry, the traditions... you have the money. We have the buildings, the paintings, the gardens, the palaces... you have the money. And that's why we are here tonigt. We are going to hold a telethon for England. If you wish to plesdge money for England, an ancient charity, here is the number to ring: 555-1066."

Click to expand...

Neesie said:

I thought Britans used euros.

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NO, NO, NO, NO, NO. By the way did I mention ----- NO. We have our own currency and aren't about to give it up any time soon. Even the current government who historically have been hell bent on dragging us into the Mickey Mouse currency are saying it ain't gonna happen now.
Wales was left off the countries of the UK who use the £ in a previous reply. Although seen as backward and insular by some, they still do use the £ as well.
Joking apart, the weakness of the £ against the $ certainly does make the UK an attractive destination from the US, and we have some very nice resorts too.

I used AMEX traveler's checks and converted them to pounds at the post office in the UK, for a low exchange fee. My daughter's BF who is a Scotsman advised me that this was a good way to go. Also, the owner of the flat I was renting wanted to be paid in cash, so I needed a large amount of cash.

Keitht said:

Joking apart, the weakness of the £ against the $ certainly does make the UK an attractive destination from the US, and we have some very nice resorts too.

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I just want to get back to New Tayyabs in Whitechapel and have some of the best Pakistani/Punjabi food I've ever eaten in my life. And now for something like $15 per person for dinner!!!

In fact, next time I'm in London, I would not be surprised if I ate at New Tayyabs 3 nights out of 6.

Talent312 said:

"They" say that the best way to obtain foreign currency is by using ATM's in the country you are in.

Click to expand...

That doesn't help if you're planning to go in, say, summer 2010, but want to lock in the exchange rate now. Also, my experience with using foreign ATMs is that the exchange rate is variable, you have to pay the ATM service fees for two banks, I have not found the rate to be significantly better than the rate at Wells Fargo here in the U.S. (by more than a penny or two per hundred dollar), and the banks often charge exchange rate service fees on top of the ATM withdrawal service fees.

DeniseM said:

I used AMEX traveler's checks...

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Traveler's checks? Now that's a blast from the past.