Travelers May Be Big Winners as Euro Debuts

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

Next month, the New York-based manager of student exchange programs 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 8% or more. And it will be easier to comparison shop from country to country for everything from car rentals to wool shawls. Pockets no longer will bulge with French francs or Italian lire.

“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 U.S. tourists to Europe a year.

At first, travelers should expect longer lines at foreign exchange outlets and some retail shops, which will handle the euros and outgoing local currencies during a phase-in period until as late as Feb. 28, depending on the nation. And some overseas automatic teller machines may not be equipped to dispense euros right away.

Shoppers could pay more for some items as stores round up prices to the nearest euro decimal when converting local currencies. 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, which operates 380 foreign exchange bureaus in the 12 nations adopting the euro.

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

For small purchases such as espresso in Paris or gelato in Florence, Italy, travelers will want to have euros on hand. To avoid waiting in lines, it’s prudent to buy a few hundred dollars worth of euros in advance from a foreign exchange bureau in the U.S.

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

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

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