The U.S. dollar is holding its ground against many global currencies, which is excellent news for American travelers. This means you can stretch your money further when exploring international destinations. One clever way to snag a travel deal is to pick a location where the strong dollar provides an automatic discount on costs like hotels, restaurants, and local activities.
Asia Beckons with Budget-Friendly Prices
Right now, many Asian countries are more wallet-friendly than they’ve been in recent years. If you’ve dreamt of exploring Bangkok or Phuket, now’s your chance! Your dollar goes further in Thailand, buying 8.5% more Thai baht compared to last year. You’ll also find your dollar stretches further in Vietnam, Indonesia, and Malaysia.
Japan: A Yen for Adventure
But the Asian currency most influenced by the robust U.S. economy is undoubtedly the Japanese yen. The dollar buys a whopping 15% more yen today than a year ago. That’s a staggering 43% increase in value compared to five years ago.
Japan’s Rising Popularity
This favorable exchange rate has made Japan a magnet for travelers, especially Americans. Japan welcomed over three million foreign visitors in March 2024—the first time it’s reached that milestone in a single month! That’s a remarkable 69.5% increase compared to the previous year and an 11.6% jump compared to March 2019.
Americans Flock to Japan
American travelers are also embracing the opportunity to explore Japan. In March, a record 290,100 Americans visited the country, representing a 42% year-over-year increase and a 64% surge compared to the same month in 2019.
Increased Spending Fueled by the Yen
The weaker yen has fueled spending by visitors to Japan, as their money buys more than it has in decades. Foreign travelers spent a staggering 1.75 trillion yen (approximately $11.2 billion) from January to March, a 52% increase compared to pre-pandemic levels in 2019.
Japan: A Hot Destination
Japan is so popular that it captures 29% of all U.S.-based searches for trips to Asia and 8% of all international searches for the summer.
Airfares Soar with Demand
This surge in demand has pushed airfares upwards. For May departures from the U.S. to Japan, tickets average $1,281, a 4% increase from last year. This summer, airfare averages $1,379, a 2% increase compared to last year and a 26% jump from 2019.
Airline Capacity Recovers
Despite rising airfares, additional flights are helping to manage price inflation. Both U.S. and Japanese airlines are increasing service between the two countries, bringing the market closer to pre-pandemic levels.
Navigating Japan’s Air Travel
Hopper data reveals that 92% of U.S. travelers to Japan want to fly into Tokyo. However, the number of flights allowed in and out of Haneda airport is limited. The Japanese government controls the number of flight slots available to U.S. airlines, requiring them to apply to the U.S. Department of Transportation (DOT) for routes.
New Routes to Tokyo
United Airlines and American Airlines have both recently applied to DOT for new nonstop routes to Tokyo. American Airlines will launch its newest route on June 28, offering flights from New York’s John F. Kennedy International Airport to Tokyo, adding to its existing daily non-stop flights from Dallas, New York, Chicago, Los Angeles, San Francisco, and other cities.
