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As of January 1, 1999, the euro, Europe's new currency, unites 11 of Europe’s disparate economies. At noon, December 31, monetary and finance officials from 11 European countries met at European Union headquarters in Brussels. An electronic board fixed the exchange rate of the euro to the then-current trading value of the national currencies.

As of January 1, international transfers of sales payments, corporate profits, electronic transfers of credit card shares and payments, and other bank-to-bank transfers will occur in euros. This replaces the transfer of national currencies from Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain.

Four current members of the European Union have not joined the European Monetary Union and will not replace their national currencies with the euro. But these countries, Denmark, Greece, Sweden and the United Kingdom, will use the euro in exchange and translation as they do business across Europe.

In this initial stage, all non-cash transactions between these countries will be conducted in euros. Additionally, there will be no direct national currency exchanges between euro zone countries. (i.e.: German marks will not be accepted in France) Each country will have to first convert its currency to euros, which will be universally accepted in all euro zone countries. This situation will remain until 2002 when the national currencies are discontinued and euros are the physical currency of all euro zone countries.

Since travel and tourism is an industry where book money, such as credit and debit cards and travelers cheques, account for about 50% of spending; this industry will feel the effects of the euro first.

The impact of this change to corporate travel managers in the U.S. with significant European business is clear: simplicity. A single currency will make business travel across Europe less expensive and less complicated because of simplified currency exchanges. The conversion rate of the U.S. dollar to the euro will be approximately 1 US dollar to 1.2 euros.

Once the physical currency is introduced, business travelers will benefit from the simplicity and convenience of not having to carry quantities of different currencies. Additionally, expense reporting should prove to be more simple, as travelers will not have to convert as many currencies when gathering their receipts from a business trip to Europe. The euro will not only make things simpler for business travelers, but cheaper. Right now it is estimated that between $13 and $14 per passenger is spent on exchanging money every time a border is crossed. Experts say that with the introduction of a single currency, two-thirds of the foreign exchange business in Europe will disappear by the year 2010.

Optimists in the travel industry believe in exposing price differentials that were previously hidden by exchange rates and fees, that this new price transparency will push suppliers into dropping their price to match the lowest fare they quote. At the very least, suppliers will have to explain pricing anomalies between Euro zone countries.

TRAVELERS TO CHILE SHOULD USE CAUTION. The State Department has issued a public announcement cautioning U.S. travelers to Santiago to avoid protests directed at former Chilean president Augusto Pinochet, who has been under house arrest in London. While the protests are not directed specifically at the U.S., the State Department said travelers should still take precautions.

CARRYING ON THE CARRY-ON DISCUSSION. The Association of Flight Attendants has launched a campaign to pressure the FAA to mandate a single standard for carry-on luggage for all airlines. They propose a size limit of 45 linear inches (the total inches of depth, height and width); and a weight limit of 13.2 pounds. Association president Patricia Friend says this standard would improve safety and reduce delays and confusion.

The Luggage and Leather Goods Manufacturers of America (LLGMA) has also filed a petition with the FAA in support of a size standard. The group again urged the FAA to set a single standard for all airlines, saying it may ask Congress to intervene if the FAA does not. According to the LLGMA, the standardization of carry-on baggage programs would provide the consumer with consistency and predictability when traveling with any domestic airline, as well as when initially purchasing luggage and other travel products.

The LLGMA told the FAA, which earlier declined to set a standard, that the government "can no longer allow this confusion to continue." They are also working with the FAA on a public education campaign that would include distribution of a ticket-sized handout about carry-on rules with the theme: "Think smaller. Think smarter. Think safety."