Across the land, at about 7am on the first business day of each new year, there is an almost audible 'click'. It is the minds of millions of Americans who simply can't get enough of Europe, shifting from holiday mode to travel planning mode. In our offices there is a marked increase in emails, incoming calls on our 800 number (800-521-6722) and web traffic. Based on these first few days, 2005 is going to be a big year for European travel. And the word on every traveler's lips is 'euro.'

Just before Christmas we returned from a bit less than 4 weeks in Germany, Austria and Switzerland (trip log). In the middle of the trip, Laura Bly, ace travel writer for USA Today working a story on how the strong euro is affecting travelers, tracked me down in Berlin.

Best Recommendation: Vacation Rentals

In the finished piece (Dec 17, USA Today), she passed along my number one recommendation for beating the high euro in '05: book a self-catering vacation rental, preferably in a small town. There are several advantages: first, by paying up front in U.S. dollars you've controlled your major cost, accommodations; second, on a per square-foot basis, apartments are much less expensive than hotel rooms. For example, apartments with kitchen, living room, bath and a bedroom can be found all over Germany starting at about $350 per week. It'll cost about 20% more if you go through an agent, such as Drawbridge to Europe or At Home in France (which also offers properties in Spain), but you'll rest a lot easier  — you can get burned on your own. And finally, there are significant savings to be made by cooking some or all your own meals. 'Drawbridge' and 'At Home' are both small but dependable companies operated by savvy pros who have personally chosen the properties they offer.

The "Untour"

Another terrific option is Untours of Media PA. For 30 years, this solid, family-run operation has filled a need for the Europe traveler who isn't up for a group bus tour but still requires a bit of in-Europe hand-holding. Termed “Independent Travel with Support,” their product consists of two weeks in a fully-equipped chalet, house, condo, or apartment. With the guaranteed-in-US-dollars price comes a rail pass or rental car and about as much or as little on-the-scene assistance as the traveler desires. Arrivals are escorted to and from airports, given stacks of useful reference materials, and an arrival orientation. The advice and help is provided by knowledgeable, English-speaking locals. The rest of the time 'Untourists' are left on their own to explore the country via their rail pass or rental car. The packages are sold with or without air from the U.S. and offer amazing value. For a couple, Untours' Germany packages start at less than $2,000 per person and less than $1800 in Switzerland and just over $1800 Austria. Remember these price include air and rail. (By the way, Untours is currently running a $999 winter special for Holland). Book early, because this company has a loyal following of year-after-year customers and the best properties go first. While in Switzerland we saw several Untours apartments and they ranged from good to dazzling.

We'll be covering these options in a lot more depth and detail — such as which apartments to ask for — in our printed monthly newsletter, Gemütlichkeit, The Travel Letter for Germany, Austria & Switzerland (subscribe here and 50% of your subscription price goes to Americare for Tsunami and Earthquake relief).

With that strong euro still firmly in mind, here's some quick info and advice on a few Europe travel basics for 2005:

Transatlantic Air Fares

With the strong euro, transatlantic airlines expect an unprecedented number of European visitors to the U.S. this summer. As a result they have devoted much of their seat inventory for sale in Europe. One industry source told me some July and August Lufthansa flights are already sold out and forecasts a shortage of seats available to the U.S. market, especially in high season. Coupling that info with Gemut.com air department's experience over the past 5 years, the earlier you purchase transatlantic air tickets, the less you will pay and the better chance you have of getting the desired dates, city pairs, and prices. Those traveling in high season SHOULD NOT WAIT until April or May in hopes of a sale. Yes, there have been — and probably will be again this year — brief windows of opportunity where one might save $50 or $100 per ticket. What's much more likely to happen, however, is instead of paying, say, $1000 for a high season ticket now, you'll pay $1300 to $1500 later on. Of course, if you can travel before June 14, when the high season starts, you'll also save even more money. The Gemut.com air department has access to several consolidators and specializes in Lufthansa. Click here for an emailed quote or phone 800-521-6722.

We expect fares to be marginally above 2004 — added fuel and security costs — and to remain firm through summer; the demand is there.

Car Rental in Europe

The rising euro brought a steady increase in rates throughout 2004, a trend that has continued in just the first few days of '05. My advice is to book now in guaranteed U.S. dollars. Most car rental reservations can be canceled or changed without penalty (if they can't you're with the wrong company) so why not book now and lock in a price? If rates go down you can cancel and re-book. Right now you can still get a midsize car (Opel Vectra, VW Passat, or similar, 4-doors, air) in Germany, tax included, for $288 per week (if you must pickup at an airport or train station add 19%). Click here to get a guaranteed-lowest-price quote emailed to you or phone 800-521-6722.

Travel by Rail in Europe

A pleasant and somewhat surprising development for European travelers in 2005 is the almost negligible increase in rail pass prices (not to be confused with point-to-point ticket prices which are up in lock-step with the euro). Eurail youth passes have even dropped in price. The one-month pass, for example, is now $615 instead of $664 as it was in 2004. Prices in 2005 for the classic 17-country Eurailpass remain the same while the 3, 4 and 5 country Selectpasses come with a small price bump. The 3-country, 5-days-in-2-months Select Saver Pass goes from $304 to $316, for example.

Single country German Rail passes also have not increased in price and, with the rise of the euro, are an even better value than last year. A couple using a German Twin pass can travel from one end of the country to the other for as little as $24 per person per day, including aboard the country's sleek ICE trains which can reach speeds approaching 300 kilometers per hour. 

Last month Switzerland further enhanced its already best-in-the-world rail service. Trains between major cities - Zürich, Geneva, Lausanne, Bern, Interlaken, Basel, etc. - now run every 30 minutes on the hour and half-hour, and many trips have been shortened because of new equipment, tunnels and routing (but Swiss trains are so great I'm not sure I want shorter trips).

Swiss Pass prices jumped a bit for 2005. For example, the 2nd class 8 consecutive days Swiss Saver is now $217 vs $204 and the 15-day 1st-class Saver is now $395 vs $374 last year. But given the rise of the franc, these increases are modest and justified.

There are a number of new rail products this year. One of the most popular is bound to be the Glacier Express Tour, a 3-day, 2-night package that includes one night each in Zermatt and St. Moritz plus the ride on the legendary train and transfers to/from any Swiss airport or the border. Prices begin at $340 per person, double occupancy. To order this, or any rail product, phone 800-521-6722 (press option #3). Remember Gemut.com's travel department offers free shipping on orders over $400.

A Swiss Hideaway

Of course, one of the ways to beat the high Swiss franc and euro is to stay off the beaten track. Right now on the main page of this site is our story on the Swiss village of Airolo where we found a great restaurant, a pair of pleasant hotels and enough interesting sights to keep us busy for several days. Check it out here.

One final word: in the months ahead we have many more 'euro beating' strategies in our printed monthly newsletter, Gemütlichkeit, The Travel Letter for Germany, Austria & Switzerland. Also scheduled are destination stories that include hotel, restaurant and things-to-see recommendations for Appenzell in Switzerland, Berlin, Wiesbaden, Vienna, Southern Bavaria, and a lot more. If you've been thinking about subscribing, there has never been a better time because for the next three months 50% of all new subscription revenue received via our website and our toll-free 800-521-6722 (option 3) goes to Americare for Tsunami and Earthquake relief. Right now Americare is devoting 100% of donations received to the recovery effort in Southeast Asia and is one of Charity Navigator's highest rated charitable organizations. (If you simply would like to donate to Americare there's a link on our website.)

In addition, we are donating 5% of all January revenue from our sister company, Travel Essentials, to Americare. Remember, at Travel Essentials you get 10% off all merchandise by using the code GEMUT2005.