Exchange Rate Fluctuation When Americans Travel to Europe

Assume that Americans increase their travel to Europe. Discuss exchange rate fluctuation in this case.

Exchange rate fluctuation may affect industries that are in direct competition with foreign producers or rely on their supplies. Specifically, international competitiveness is affected by the influence the exchange rate has on relative costs. How will the event described above affect the foreign exchange market? Will your answer be different if the currency was pegged? Please explain if a dirty float system will change your assessment.