Dollar hits record low, making Europe trips more expensive than ever

The dollar hit another record low against the euro today, with the European currency reaching a high of $1.4130 earlier today. That is the highest level since the multi-nation currency debuted in 1999. The dollar's decline and surging euro has slashed the spending power of American tourists in Europe, while it makes the U.S. a relative bargain for European tourists. New York City in particular is brimming with overseas visitors, while Americans are starting to slack off on trips to Europe and Canada, where the Canadian dollar has soared against the U.S. dollar.

Many analysts see more U.S. interest rate cuts ahead, following last week's half-point interest-rate cut. That could further weaken the U.S. currency as investments denominated in dollars become less attractive.

Travelers to Europe can try to trim their costs by going in the off-season, in November or January and February when hotel rates are substantially lower. A guided tour can also be a good way to go since prices are fixed. And consider heading to Eastern Europe, to countries such as Poland where prices remain lower.

Kristin Jackson of the Seattle Times contributed to this report.