The strong dollar has meant Europe is the best place to buy luxury goods, as equal pricing strategies in global markets has proven not to work after the pandemic, along with current currency fluctuations.
In Milan and Paris, two of Europe’s capitals for fashion and luxury goods, American tourists are spending 80 percent more when compared to the same period in 2019. Figures from payment business Planet, which analysed VAT refund data, shows European prices on luxury goods average about 38 percent less than in the U.S., as was reported in the Wall Street Journal.
A good example is Louis Vuitton, where its iconic monogram Boétie MM bag retails for 1,700 euros in Europe and 2,240 dollars in the US, a difference of approximately 30 percent.
In the UK, the fall of sterling has meant London’s luxury hotels are full with American visitors. In general, the weakened pound and euro is allowing Americans to splurge when compared to a year ago when the dollar was less high. While weaker currency makes imports pricier, European-made fashion and accessories along with dollar parity has been beneficial to U.S. travellers.
That is until the European luxury houses decide to raise their local prices.