Euro to Ease Travel Hassles

Jairo Riveros made eight trips to Europe last year, and he had to convert currency each time he crossed from one country to another.

Next month, the manager of student exchange programs in New York will have to do it only once. Calculating housing and transportation costs for students from different nations should be a snap too.

As the European Union verges on its historic currency switch, the group most potentially confused--foreign travelers--also stands to gain the most.

Once the new notes and coins start circulating Tuesday in the 12-nation euro zone, travelers can save the hassle and cost of changing money multiple times, avoiding commissions of up to 8% or more. It’ll be easier to comparison-shop from country to country for everything from car rentals to wool shawls. Pockets will no longer bulge with francs from France, guilders from the Netherlands and lire from Italy.

“The bottom line is short-term confusion, long-term gain for everybody,” said John Murray, president of ETM Travel Group, a Westport, Conn., tour operator that sends about 7,000 American tourists to Europe a year.

At first, travelers should expect longer lines at foreign exchange outlets and some retail shops, which will handle both euros and outgoing local currencies during a phase-in period. And some automated teller machines may not be equipped to dispense euros right away.

Shoppers could pay more for some items, as stores round up prices when converting local currencies to the nearest euro decimal. It may be tough for tourists unfamiliar with European costs to figure how much more they’re paying.

“It’s important that you check your change,” said Nancy Muller, a spokeswoman for American Express Co., which operates 380 foreign exchange bureaus in the 12 nations adopting the euro.

The countries adopting the euro are Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. Those staying out are Britain, Sweden and Denmark.

To avoid long lines abroad during the transition period--and to make sure you get what you pay for--experts recommend you use a credit card whenever possible.

For small purchases such as gelato in Florence or cafe au lait in Paris, you’ll want to have euros on hand. To avoid a wait in line, it’s prudent to buy a few hundred dollars’ worth in advance from a foreign exchange bureau in the United States.

American Express and Thomas Cook, operators of major foreign exchange bureaus here, said they’ll start selling euros from outlets in the U.S. the first week of January. Citibank, owned by financial services giant Citigroup, said it will make euros available from its 446 U.S. branches at that time.

To supplement pocket change, some vacationers plan to empty their dresser drawers of European currencies hoarded as souvenirs from previous trips.

“I think I still have some francs left over from last year, and I will take them--less than $100,” said Elsa Montemayor of San Antonio, who is returning to Paris in January. Outgoing currencies will be accepted until Feb. 28 by businesses in most of the euro nations, including Germany, Italy, Greece and Spain. The exceptions are the Netherlands, until Jan. 27; Ireland, until Feb. 9; and France, until Feb. 17. Commercial banks will accept local currencies for many months after.

Don’t panic if you forget to use up old European currencies before you return to the U.S.

Thomas Cook will redeem them for dollars at its 40 foreign exchange bureaus here, as long as the individual country’s central bank accepts them, said David Montgomery, general manager of North American retail operations. American Express’ 120 U.S. bureaus also will buy them for dollars for years to come.

For instance, French francs and German marks will be redeemed indefinitely by their central banks, Italian lire and Greek drachmas until 2012 and Dutch guilders until 2032.

Citibank will redeem local currencies until Feb. 28 at its U.S. branches and two foreign exchange bureaus in Manhattan, a spokeswoman said.

Many travelers look forward to the convenience of a currency whose value is close to the dollar, with 1 euro trading at about 90 cents on foreign exchange markets last week.

Gerry Mullany of New York recalls trying to determine prices during a trip to Italy last year. “It was like 4,000 lire for a cup of coffee. We had to just sit down and figure out, ‘Gee, is that worth buying?’” said Mullany, who plans to travel in March to Belgium and France.

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European Travel Tips

Suggestions for people traveling to Europe next year:

If you’re traveling early next year, buy euros in advance at a foreign exchange bureau in the United States because outlets in Europe may have unusually long lines and some ATMs may not be dispending euros yet.

Pay with a credit or charge card whenever possible to avoid lines and to be sure you don’t overpay.

Bring any extra old European currencies you may have sitting around as souvenirs.

Try to comparison-shop between nations now that it’s easier to figure out where the bargains are.