Dollar's gain is good news for travelers

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If you're planning a trip to Canada, Mexico, Europe or just about anywhere else soon, the financial crisis has an upside: Your dollars will buy more than they have in a long while.

The U.S. dollar has strengthened against most world currencies amid falling oil prices and a widening worldwide credit crisis.

—With the euro at $1.36 compared to $1.60 earlier this year, a 100-euro hotel room in Italy will cost you $136 today compared to $160.

—Lunch at a pub in London priced at 10 British pounds is $17.60 with the exchange rate on the British pound at $1.76 vs. $2 last year.

—Going across the border to Vancouver soon? Don't settle for an even trade on your dollars. The greenback is now worth $1.10 Canadian, the most since May of last year.

This is good news if you are planning to travel soon and want to lock in a lower price than you would have paid only a few weeks ago.

A few suggestions:

—Hedge your bets and pay what you can in advance if you think the dollar will eventually weaken again; If you think it will strengthen even more, as some economists do, avoid paying too far ahead for anything priced in a foreign currency. One survey shows economists predicting that Canada's currency will slip to $1.13 against the U.S. dollar by the end of 2009.

—Avoid buying foreign currency here too far in advance of your trip.

—Don't look

for a price break on tours scheduled for next year — at least not yet. Those prices were set earlier this year when the dollar was at record lows against the euro and other currencies. Tour companies, hoping to recoup losses from this year, will likely stick with their pricing at least in the short term.

Airlines have so far kept fares to Europe for fall and winter at near-summertime peaks, but if seats go unfilled and they are forced to drop fares, travel could become more affordable again, although still not a bargain.

Mexico, always an inexpensive destination for Americans, has become even more affordable. The peso plunged to a record low of 11.7 per dollar, the biggest decline since January 1999.