Summer Travel Forecast

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Look for Dollar-Friendly Destinations

Planning an overseas holiday this summer? Despite the dollar's rapid descent against the euro in Western Europe, it is relatively strong in Eastern Europe. You won't have Paris, but Budapest is a charming stand-in. The Dalmatian Coast, across the Adriatic Sea from Italy, does a passable imitation of the Amalfi Coast. In Asia, the Hong Kong dollar is tied to the greenback, so prices remain stable. (By the way, I don't know a single person going to the Summer Olympics in Beijing.) Closer to home, Argentina is cheap and trendy; everyone comes back raving about Buenos Aires and schlepping a case of Malbec wine. And don't forget Mexico: At 10 pesos to the dollar, it's a terrific bargain. Just avoid the sterile, overpriced resort ghettos like Cancún.

Use Your Loyalty Strategically

Airline frequent-flier miles and hotel frequent-stay points are the Zimbabwean dollars of travel: They are printed with abandon, and it takes millions of them to get the simplest commodity. Planning ahead in hopes of scoring the "best" rewards at the "restricted" levels is a Sisyphean task. But most programs allow you to cash in extra miles or points for virtually any available seat or hotel room. Using the so-called unrestricted option is a terrific strategy when you are traveling at the last minute or on a whim. One example: Continental Airlines is selling advance-purchase business-class seats from Newark to Zurich this summer for as little as $1,800 roundtrip, or 100,000 restricted OnePass miles. That means the miles are worth just 1.8 cents each. But walkup tickets to Zurich this summer will cost about $6,700 roundtrip—or 250,000 unrestricted OnePass miles. That's a much heftier payout of 2.6 cents per mile.

Stay Home

A summer getaway needn't be far away; consider hanging out in your hometown. Every decent hotel has "value-added" packages that bundle room accommodations with everything from in-room movies and museum admissions to spa treatments and shopping discounts. A package at the Ritz-Carlton, Denver, for example, includes the room, wine and fruit, breakfast in bed for two, and one admittedly practical amenity: free valet parking.

The Fine Print…

A followup to our merger column and the potential payoff for outgoing Northwest Airlines chief executive Doug Steenland: According to a Securities and Exchange Commission filing, Steenland has given up his potential merger cash-out package of $7.8 million. He traded it in for a new one worth $18.3 million. It's contingent on the merger with Delta Air Lines closing by the end of the year and his employment terminating on January 1, 2009.

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