Pinching dollars

WITH the dollar slipping and sliding against the euro and lingering economic malaise, travelers have one eye on their guidebooks, the other on their pocketbooks.

As someone who has stashed take-out food in the hotel mini-bar, I can say there are painless ways to save money and still come home with great memories. Different memories, maybe, but still great.

It depends on where — and how — you go.

Where to go in 2004? Experts say that good-value foreign destinations are in Eastern Europe — Prague, Czech Republic; Budapest, Hungary; and Croatia — and Spain, Portugal, Latin America, Australia and New Zealand (once you get there), Mexico (off the beaten track) and most of the Far East, including Thailand.

The most expensive places for Americans? Japan and much of Western Europe, especially France and England.

Whether traveling halfway across the country or halfway around the world, doing your homework saves you money.

“Creative itinerary planning” is key, said Don George, global travel editor for Lonely Planet guides. That means searching out such money savers as single price passes to a city’s major museums, free museum days and one-day passes on buses and subways, information that’s often available on line or from foreign tourist offices. (See Page L4.)

“People are definitely continuing to travel, [but] they’re really thinking about where they want to put their money,” said Erica Kestenbaum, publicist for Fodor’s travel guides. “They aren’t going to the top in every category,” choosing perhaps to splurge on a hotel but skip a pricey restaurant or vice versa.

Recognizing this sign of the times, Fodor’s 2004 guides have sections on budget lodging and eating.

“It’s really tough right now for Americans, with the dollar plummeting,” said Tom Mercer, project editor for Let’s Go guides, but travelers with flexible dates can save money with last-minute deals through ticket consolidators, cruise lines and others.

“You have to be willing to go against your urges,” Mercer added, maybe settling for corn skiing (off-peak season snow that has melted and refrozen) at a fancy resort rather than paying top dollar in high season.

Here are a few tips from the pros for squeezing the most out of every travel dollar:

• Buy a package deal that includes airfare and hotels.

• If your room has a refrigerator, stock up and avoid overpriced hotel breakfasts.

• Book city hotels for weekends when business travelers are gone and rates dip.

• Have lunch, rather than dinner, at a top-flight restaurant, then an inexpensive evening meal.

• Travel overnight on a train or a red-eye flight, avoiding a hotel bill.

• Consider house swapping or renting a house with friends. The latter is a good way to sample local life and enjoy luxurious accommodations with each party paying little or no more than for a hotel room. Also, eating breakfast and the occasional dinner at home saves big money.

• Be aware of the exchange rate. Commercial exchange windows in tourist areas are apt to give the worst rates and, on top of that, add high fees.

• Don’t wait to buy your souvenirs and gifts until you’re at the airport on the way home. You’ll spend too much for too little.

• Wing it. Book air and a couple of hotel nights and then just see where your whims and your pocketbook lead you. Proprietors of small hotels often are willing to negotiate prices.

• Be smart about tipping. Find out the local custom and make sure the service charge is not included.

• Plan to visit cities when you can take advantage of free festivals or concerts.

Where not to scrimp? “Obviously, you should always pay for a level of comfort and security that you feel is your bottom line,” said Mercer of Let’s Go guides. “If you feel unsafe, you should think about spending a little more money.

“I think you also should identify the things you really want to do and not be afraid to splurge on them. If you go to Alaska and more than anything want to go on a flight-seeing trip, you’re going to be more upset with yourself if you don‘t spend the money.”

A travel agent often can save you time and money. An agent’s role has changed considerably since airlines began cutting commissions. Only 30% of an agent’s revenue comes from sale of airline tickets, said Bronx-based Richard Copland, chief executive and president of the American Society of Travel Agents. As a result, “they’ve become destination specialists.”

Virtually all agents charge for airline bookings and, Copland said, 25% of the society’s members charge a consultation-research fee for individual travel, and it’s “a growing trend.” The fee, typically “in the $150 range,” usually is nonrefundable but is applied toward the cost of the trip.

But agents know of deals, may have “ins” to get upgrades and can help avert costly mistakes.

So you’ve budgeted your trip and think you’ll need X amount of money. The big question: traveler’s checks, plastic, cash or a combination? Most pros advise a combination.

For travelers to Europe, “our normal recommendation is to make sure you have a small amount of foreign currency in cash and the balance of your funds in some safe vehicle,” such as traveler’s checks or credit cards, said Linda Teter, director of consumer travel for American Express.

ATMs grow in popularity

Some travelers are shying away from traveler’s checks, noting that ATMs are widely available (MasterCard is good at 906,000 machines worldwide, Visa at 855,000) and give the best exchange rate. Further, some merchants abroad are reluctant to accept traveler’s checks, citing counterfeiting.

In October, American Express introduced its prepaid, reloadable TravelFund card, which can be used to get cash at any of the 550,000 American Express ATMs worldwide or to make purchases anywhere AmEx cards are accepted. The card is not linked to a bank account. It costs $14.95 and has a $2,750 limit.

Debit cards, which are like plastic checks, can be used to deduct cash from your checking or savings accounts or to make purchases at shops or restaurants. There are two types: online and offline.

Online cards are ATM-friendly and require a personal identification number. It’s a good idea to determine whether your PIN will work abroad, because some foreign ATMs don’t accept PINS of more than four digits. Offline cards are simply swiped at the merchant’s terminal, where you sign a receipt.

If you choose to use credit cards, make sure they will not expire during your trip and, if necessary, ask for an increase of your credit limit. It’s wise to alert the card issuer that you anticipate “abnormal use.”

It’s also generally wise to take some foreign cash. The exchange rates at airport banks generally tend to be poor, and the facility may be closed when your flight arrives and you need cash for a cab.

The 12 European Union countries using the euro — Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal and Spain — have eliminated the need for converting dollars into hundreds of lire or francs or whatever. Britain, Denmark and Sweden do not use the euro, which recently was trading at $1.26.

“With the dollar so weak, people see this as a reason to wait until next year” to travel, Mercer said, “but there are still ways out there to get value. It’s better to cut costs than to avoid traveling entirely. You just have to adjust your spending habits.”

Less luxury may be the credo for travel in 2004, but as Lonely Planet’s George said, “It doesn’t matter where you rest your head. Paris, London and Rome are still there.”

*

Where a dollar goes far

... and where it doesn’t