Europe's on Sale (and so is Australia)

In a previous post, I discussed the growing strength of the U.S. dollar against the Icelandic krona. Well, the greenback is also gaining ground in other countries. So, between off peak rates and the strengthening dollar, this winter will be the cheapest time to travel overseas in quite awhile.

Let's play the exchange game. The dollar has strengthened nearly 50 percent against the Icelandic krona since a year ago. It's gone up nearly 20 percent against the British pound during the same time period. In Romania, the dollar will buy you 15 percent more lei than a year ago. Most European countries, of course, are in the Euro zone. Since last October, the dollar has increased 10 percent in value against the Euro.

While the dollar will buy more in Europe this winter, it's still cold on the Continent. If you are hankering for a bit of sun and fun, head to Australia, where December through March is summertime. The U.S. dollar is 20 percent stronger against the Aussie dollar than one year ago, so it might be a fine time to go Down Under.

One other factor in the winter traveler's favor this winter--soft demand. Airlines, cruise operators and hotels are predicting low numbers for the upcoming quarter. To entice travelers, plenty of good deals on overseas airfares and tour packages are likely to be on offer.