Some tour operators say they have encountered newfound resistance to dollars in parts of Vietnam and Peru, especially in villages that are off the beaten path.
"It used to be a $100 bill was universal everywhere, from Moscow to Mozambique," said Peter Rudy, the North America director for KE Adventure Travel, a Denver-based outfit that books adventure trips throughout the world. "It's not now."
Even in New York, some shops are encouraging payment in foreign currency. A recent article in The Villager, a Manhattan neighborhood newspaper, noted that East Village Wines, a liquor store at 138 First Ave., accepts payments in euros as well as dollars.
Over the last year through mid-January, the dollar has depreciated about 9 percent against the euro, 10 percent against the rupee, and 12 percent against the Chilean peso, said Jay Bryson, global economist at Wachovia.
In the past, savvy travelers could hedge against the weakened dollar by buying a prepackaged tour. Tour operators set prices as much as 18 months in advance, so they can be printed in brochures and other marketing materials. Those travelers were essentially getting a built-in discount during the last couple of years as the dollar fell against other currencies. But not this year.
Some American tour operators are now tacking on so-called currency surcharges, in much the same way that airlines have bumped up fuel surcharges in the face of rising oil costs. Others are raising package prices to help make up the difference.
Last month, Group Voyagers, the parent company of Globus, Cosmos, Monogram, and Avalon Waterways, added a currency surcharge of about 5 percent to many of its European tours. For example, Globus' $1,699 Taste of Italy package starting on May 3 now includes a surcharge of $110 a person. Overall, travelers can expect to pay $20 to $190 extra per person for the European tours.
