Overly-strong US dollar eliminating many cruisers

[MadManOfBethesda]

I recall that when the Euro began the exchange rate was 1 Euro for 0.85 USD....

 

Your recollection is faulty. When the Euro was implemented, the exchange rate was 1 Euro for $1.1789 USD, not $.85.

 

Ironically, what you wrote is the inverse of what was implemented. One dollar equaled approximately .85 Euro.

[dakrewser]

I will be going on a 21 day dream cruise with HAL this winter, but I am afraid it may be the last for while due to the inequality in the CAN-US exchange rate :(

 

It gets pretty difficult to lose 30+ cents of every dollar spent.

 

Will be looking at European options for next cruises :)

 

 

Because the Euro is on par with the CAD????

[caladezi]

Your recollection is faulty. When the Euro was implemented, the exchange rate was 1 Euro for $1.1789 USD, not $.85.

 

Ironically, what you wrote is the inverse of what was implemented. One dollar equaled approximately .85 Euro.

 

Sorry MadMan but you are wrong! I was in Europe when the implementation took place and the Euro was LESS than the USD which is why many Americans invested in the Euro at that time.

[kazu]

Because the Euro is on par with the CAD????

 

No, most likely because the euro exchange is more favourable to the Canadian dollar than the U.S. $ . The fluctuation has not been as high (at least when we have bought it).

[dakrewser]

Sorry MadMan but you are wrong! I was in Europe when the implementation took place and the Euro was LESS than the USD which is why many Americans invested in the Euro at that time.

 

According to The Independent, "The dollar was trading at an initial value of $1.1685 to the euro" or .856 Euro = $1.

[Blue Mudshark]

Sorry MadMan but you are wrong! I was in Europe when the implementation took place and the Euro was LESS than the USD which is why many Americans invested in the Euro at that time.

 

When the Euro was introduced on January 1, 1999, the exchange rate with with US dollar was 1.1743 USD == 1.00 EUR. One euro was worth more than one US dollar at that time. The value of 1.1743 USD is one of several numbers cited, with small variations, since the exchange rate may vary slightly depending on how and where the conversion is conducted. "About 1.16 USD to 1.19 USD" is probably more correct, if less precise.

Edited December 20, 2015 by Blue Mudshark

[Tom O.]

IMO, this rise in the US Dollar compared to the Canadian Dollar is temporary.

I suspect that the Canadian Dollar has dropped recently - probably as a result of the worldwide oil glut. I believe that Canada is an important exporter of oil. Meanwhile the oil glut is helping the American Economy because we are the largest importer of oil in the world.

The unrest in the Middle East has resulted in Middle Eastern counties to produce as much oil as possible, and this has caused the oil glut. They are overproducing to get money for arms and other war related supplies. If peace should return to the middle east, the oil exporting countries may be able to reduce output again, as they have done in the past. This should mean a collapse of the US Dollar and a rise in the Canadian dollar.

[cruz chic]

IMO, this rise in the US Dollar compared to the Canadian Dollar is temporary.

I suspect that the Canadian Dollar has dropped recently - probably as a result of the worldwide oil glut. I believe that Canada is an important exporter of oil. Meanwhile the oil glut is helping the American Economy because we are the largest importer of oil in the world.

The unrest in the Middle East has resulted in Middle Eastern counties to produce as much oil as possible, and this has caused the oil glut. They are overproducing to get money for arms and other war related supplies. If peace should return to the middle east, the oil exporting countries may be able to reduce output again, as they have done in the past. This should mean a collapse of the US Dollar and a rise in the Canadian dollar.

 

Is that really the cause of the oil glut? I thought it was to drive the shale producers in the USA out of business. I sure hope the dollar gains strength before April. I'm kicking myself for not buying some usd a few months ago.

[Tom O.]

Is that really the cause of the oil glut? I thought it was to drive the shale producers in the USA out of business. I sure hope the dollar gains strength before April. I'm kicking myself for not buying some usd a few months ago.

 

IMO, the middle east situation is the main cause of the oil glut. When the price of oil rose dramatically, a couple of years ago, it became economically feasible to produce oil from shale. Once this new supply of oil became available, it put the brakes on oil price increases. But I don't think oil exporting countries are conspiring to shut down shale production, I think their own needs for cash is what is more important.

[Kamloops50]

The canadian dollar is expected to drop another 3 to 7 cents before it starts to recover. The big cause of the dollar this week was the US Fed raising the interstate rate. Many people also consider the US Dollar a safe currency especially in the EU and Asian countries.

A negative interest rate doesn't give people confidence in their countries currency.

[Lizzie68]

I live about 20 to 30 minutes from the border (depending on traffic) and I do remember the days when the CDN dollar was quite a bit higher than the USD. It sure made my trips more enjoyable.:) At par, not so long ago, I still made my weekly trips. Now - well the outlet malls south of the border are almost empty. The only thing making it worth going is if you get something you cannot get here, and the variety is sometimes better. But it's been several months since I went across the border to do any shopping and now now the strong USD/weak CDN is factoring into my cruising decisions. I have two cruises booked, thankfully in Canadian dollars some time ago, but nothing beyond those.

[iancal]

You have to take the good with the bad.

 

A few years ago the CAD was strong and Europe cruises were desperate for customers. We took advantage and did four Med cruises and a TA. At that time is was more advantageous for us to do a cruise at $100. per diem for a balcony than it was to do land.

 

It has all changed now and we take that in stride. This past Sept we did a land trip in Europe. We are now planning several land trips instead of cruises. The cost deltas/savings are significant.

 

I have no doubt that when the pendulum swing back a little we will be cruising again. Perhaps in another two years or should a great last minute offer come our way.

 

It is a great time for those who live in USD to travel to Europe and to Canada. I hope they take as much advantage as they possibly can. We were somewhat surprised not to see as many Americans in Europe this past fall as we expected. But we have noticed an increase in airfares from US cities to Europe this summer so perhaps there is now demand.

Edited December 20, 2015 by iancal

[KirkNC]

As I suspect many do, I had not focused on the negative impact on others, I focused on the positive impact it has had on the cost of our trips to Europe and elsewhere overseas. Our costs there have dropped significantly in most cases. I can completely understand that it would have a negative impact on those on the other side of this. Thanks for pointing that out.

[Blue Mudshark]

A negative interest rate doesn't give people confidence in their countries currency.

What in the wide world of sports is a "negative interest rate"? Does that mean I could pay back a loan for less than the original loan amount?

[KirkNC]

What in the wide world of sports is a "negative interest rate"? Does that mean I could pay back a loan for less than the original loan amount?

 

It means they charge you to keep your deposits. So $100 at a negative rate of 1% would cost you a $1/year for example. It is done to discourage savings so people will invest their money in other assets. The theory is it helps economic growth.

Edited December 20, 2015 by KirkNC

[cruz chic]

IMO, the middle east situation is the main cause of the oil glut. When the price of oil rose dramatically, a couple of years ago, it became economically feasible to produce oil from shale. Once this new supply of oil became available, it put the brakes on oil price increases. But I don't think oil exporting countries are conspiring to shut down shale production, I think their own needs for cash is what is more important.

 

No one is making money on $35 barrel of oil.

[taxmantoo]

No one is making money on $35 barrel of oil.

 

Except the company who makes and sells the barrels :D

[cruz chic]

Except the company who makes and sells the barrels :D

 

Got that right :D.

[iancal]

Actually the refiners, so I have been told, are making big bucks in the current market situation. They are taking advantage of the low price of crude.

 

They are keeping a portion of the drop in crude as increased profits and are not reflecting the full amount of the drop in crude prices in the wholesale cost of the refined product.

Edited December 20, 2015 by iancal

[SilvertoGold]

Personally, it is a matter of what I have to pay for a HAL cruise.

 

HAL prices in USD. They have a CND price that is quoted to Canadians.

 

The cruise I took this year for CND 2000 pp is quoted today by HAL at CND 4000 pp. This is the same intinerary, same category, same length, same month.

 

Another example, not so stark: CND 1800 pp this year, next year quoted at CND 3000 pp. Same everything.

 

After allowing for a 40% premium for the difference between the CND and the USD, HAL is charging a lot more:

 

CND 2000 + 40% = CND 2800 -- we pay CND 4000 pp

CND 1800 + 40% = CND 2520 -- we pay CND 3000 pp

Edited December 20, 2015 by SilvertoGold

[Kamloops50]

What in the wide world of sports is a "negative interest rate"? Does that mean I could pay back a loan for less than the original loan amount?

 

This set by the central bank of the EU to keep money in circulation instead of being held . It applied to the large banks . Basically this would trickle down to the consumer with 0% rate .

The Canadian Goverment is looking at setting "Negative Rates for the Prime rate". The Prime rate is what the banks get for depositing money in a central bank.

[kazu]

Personally, it is a matter of what I have to pay for a HAL cruise.

 

HAL prices in USD. They have a CND price that is quoted to Canadians.

 

The cruise I took this year for CND 2000 pp is quoted today by HAL at CND 4000 pp. This is the same intinerary, same category, same length, same month.

 

Another example, not so stark: CND 1800 pp this year, next year quoted at CND 3000 pp. Same everything.

 

After allowing for a 40% premium for the difference between the CND and the USD, HAL is charging a lot more:

 

CND 2000 + 40% = CND 2800 -- we pay CND 4000 pp

CND 1800 + 40% = CND 2520 -- we pay CND 3000 pp

 

good point. It's always advisable to check the U.S. price and convert it to Canadian. I always do that as sometimes it can work out in our favour to book in U.S. $ (which I have done in the past).

 

For the last couple of cruises, our "timing" has been right as we booked early and the Canadian price had not yet been fully adjusted so it has worked out in our favour since the Canadian dollar has been steadily losing ground to the U.S. $. It can also work in the reverse and best rule of thumb is to keep your eye on things, exchange rate and price wise.

[sail7seas]

What in the wide world of sports is a "negative interest rate"? Does that mean I could pay back a loan for less than the original loan amount?

 

:rolleyes: It's when the banks require us to pay them for the privilege of depositing our money with them. :) It's almost there now.

 

[cbr663]

Personally, it is a matter of what I have to pay for a HAL cruise.

 

HAL prices in USD. They have a CND price that is quoted to Canadians.

 

The cruise I took this year for CND 2000 pp is quoted today by HAL at CND 4000 pp. This is the same intinerary, same category, same length, same month.

 

Another example, not so stark: CND 1800 pp this year, next year quoted at CND 3000 pp. Same everything.

 

After allowing for a 40% premium for the difference between the CND and the USD, HAL is charging a lot more:

 

CND 2000 + 40% = CND 2800 -- we pay CND 4000 pp

CND 1800 + 40% = CND 2520 -- we pay CND 3000 pp

 

It would almost lead you to believe that HAL wants Canadians to stay home. Looking at Canada / NE cruises for this summer, a 7-day Veendam, June 25th, for a Vista Suite (which is actually simply a balcony cabin) is currently priced at $3,638.70 + $289.18 = $3,927.88 CAD pp.

 

It'll be interesting to see when the discounting starts and how far it goes.

[sail7seas]

Personally, it is a matter of what I have to pay for a HAL cruise.

 

HAL prices in USD. They have a CND price that is quoted to Canadians.

 

The cruise I took this year for CND 2000 pp is quoted today by HAL at CND 4000 pp. This is the same intinerary, same category, same length, same month.

 

Another example, not so stark: CND 1800 pp this year, next year quoted at CND 3000 pp. Same everything.

 

After allowing for a 40% premium for the difference between the CND and the USD, HAL is charging a lot more:

 

CND 2000 + 40% = CND 2800 -- we pay CND 4000 pp

CND 1800 + 40% = CND 2520 -- we pay CND 3000 pp

 

Whoa..... That stings.