With the real appreciated, trips to South America help to get around the high dollar

THE real was one of the currencies that appreciated the most in relation to the dollar in 2022. Even so, the US currency continues to hover around R$5, with the euro even more expensive. In this scenario, worsened by an economic crisis in Brazil, traveling to the United States or Europe remains complicated.

An alternative, however, lives next to the Brazilians, literally. Traditionally already valued, the real gained even more breath in relation to the currencies latin american making travel to these countries more accessible.

According to experts, it is possible to visit famous tourist spots and get to know the continent better by spending less, but a valued currency is not allowed to spend without planning.

Real value

A survey by the rating agency Austin Rating at the request of the CNN Brasil Business points out that five of the eleven South American currencies appreciated against the dollar in 2022.

The biggest appreciation is the real, which rose 10.1% until May 16, followed by the Uruguayan peso (7.9%).

Chile, Colombia, Venezuela, Suriname and Argentina experienced devaluation, with the Argentine peso leading the way in losses (-12.8%).

When the comparison has the real as a reference, the scenario is different. All ten other currencies devalued, reinforcing favorable quotes for Brazilians interested in travel for the countries.

The Argentine peso was the one that fell the most, 26.5%. Currently, 1 peso is equivalent to BRL 0.042 (inverting, BRL 1 is equivalent to about 24 pesos). The least devalued currency against the real is the Peruvian Nuevo Sol, currently quoted at R$1.339, that is, R$1 is equivalent to about 0.74 Nuevo Sol.

Cristina Helena Pinto de Mello, professor of behavioral economics at ESPM, says that most Latin American countries have devalued currencies against the real.

This means that the Brazilian currency is worth more, and that it is possible to convert it to higher values ​​in other countries.

Real, dollar and travel

Mariana Aldrigui, a professor at EACH-USP, assesses that, despite the positive period for the real against the dollar in the first quarter, the dollar only remained below R$ 5 for about two weeks, a short period.

“For those who were able to make purchases in dollars or buy the currency during this period, it was worth it, if not just planning for trips based on that price”, he says.

With the dollar returning to around R$5, Aldrigui says that it is even more advantageous to look at nearby countries with devalued currencies. It highlights the Chile and the Argentina and says that the latter usually has attractive prices to compose travel packages.

She points out that the valued currency does not imply cheaper flights, on the contrary, but that it helps to form advantageous packages thinking about accommodation and expenses with food, gifts and tours.

going beyond South America Aldrigui cites the cases of Mexico and Egypt as two countries where the real is in an interesting position and which have invested in recent years in promotions to attract Brazilians.

Another option is the South Africa which, according to the professor, offers interesting prices, but is more expensive due to the absence of direct flights, requiring greater care when setting up the travel budget.

Finance professor at FGV-EAESP Fabio Gallo says that, in addition to the euro and the dollar still being expensive in relation to the real, inflation in these places has also been advancing, which makes the costs even higher.

“Even if you find places with prices that seem low, converting is expensive. It is difficult for Brazilians, even if they can afford a ticket with prices soaring, to have the money to support the rest of what they have to support”, he says.

In this sense, he also recommends trips to Brazil’s neighbors, as well as domestic destinations in the country. Although some regions are more expensive and popular, as is the case on the northeastern coast, Gallo believes that it is possible to find less popular and cheaper locations.

Mello, from ESPM, says that the rise in prices in Europe makes recent declines in the euro unprofitable for Brazilians, and travel is still expensive. In the case of U.S she recommends researching packages in advance, as it is still possible to find deals that are worth spending in dollars.

Despite also facing inflation, South America has performed better, which makes “traveling to Latin America comparatively cheaper than it used to be”.

Adrigui says that the very increase in popularity of South American destinations helps people when choosing their next trip.

“It is possible to make a combination to take advantage of the climate, winter, gastronomy, tours, and now there is even the possibility of skiing in some regions. The Brazilian tourism market already has a large repertoire to guide customers on which trips are more worthwhile, with interesting options”.

travel care

Gallo, from FGV, highlighted that, regardless of the country chosen and its currency, the essential thing is to always plan the trip.

“You can’t board just thinking about what you’re going to spend, without thinking about how. You need to follow basic guidelines: plan what you will spend morning, afternoon and night on each day of the trip. Where will you be in each period. It doesn’t have to be something so rigid, but have an idea. Plan the amounts you want to spend, if you can buy trips, tours beforehand, it’s better”, he advises.

Another recommendation is to bring a good amount of the money you intend to spend in local currency, but also a little in dollars, as many countries still have dollarized tourist markets.

The importance of physical money is to avoid using the credit card reducing the threat of higher expenses and surprises when paying fees due to conversions depending on the price on other days, especially in a moment of volatility like the current one.

Mariana Aldrigui says that people spend a lot of time planning their vacations, but not the budget.

“The trip is transport, accommodation and food, but you will want tours, buy something, you need to be clear about the budget and try to fit the trip into your budget, so as not to be held hostage to those moments that were very good but pay later”.

She notes that airline ticket prices are fluctuating because of the fuel hikes that come with oil. In this case, the recommendation is to research and buy in advance, as prices are usually lower.

If the term of exchange risk is too large, domestic tourism gains strength, and the professor says that it is even possible to find good destinations accessible by car or bus, in cheaper trips.

Even so, she warns that it is always necessary to be wary of extremely cheap prices, outside the average, especially when the date of the trip is close.

Cristina de Mello also points out that traveling to countries where the real is appreciated has a behavioral advantage: the way prices are viewed.

“When you travel to Europe or the US, prices are expressed with one or two digits, and our head quickly registers as cheap something that is expensive compared to the price in Brazil”, he says.

In Latin America, prices are usually expressed in three digits, and, even though they are cheaper, they give the impression of being expensive, which indirectly helps to spend less.

“You have to be careful, you have to convert yes to avoid choices you regret later”, he says.

The teacher also says that it is necessary to be careful with prices and be aware of good opportunities, since the moment is of misaligned prices.

“You can find a more expensive ticket to a neighboring country than to Europe now, but in 1 year it will be much cheaper. There is no rule, the tip is to always research in advance, because whoever is selling is uncertain about the future, and puts more attractive prices”.