As an experienced traveller and a Financial Advisor, I strongly believe in Diversification.
I carry
1. Credit Cards,
2. Travellers Checks, and
3. Some Cash (not too much on shore. "Wouldn't be prudent")
If the item is charged in foreign currency (i.e. not listed in US dollars), I would use the Credit card first since it gives the best exchange rate.
If I didn't use/carry cards, I might use travellers checks next, but that would depend on (a) the exchange rate offered and (b) how much cash I had.
US Dollar Bills speak long and loud, all over the world. I always bring them along with me.
Most Larger shops, etc will take travellers checks, in my experience, with proper ID.
Any other opinions?
Jim.
PS I am going out west monday and following the above scenario.
PPS If you get travellers checks, get name brand (i.e. American express, visa, etc)
PPS I strongly believe in carrying Travellers checks still (I know, some say they are archaic). I do thi as a defense against the worse possible result, (All your cash, cards, etc are stolen) you can get these replaced faster. To that end, I also keep a copy of My passport ID page with my travellers checks in my toilet kit in case Everything is gone.