Despite the tumbling Aussie dollar, Compare the Market research reveals that a third of Australian travellers are not deterred.
In April, the Australian dollar slumped to its weakest point in five years, trading at US59.15 cents, thanks to United States President Donald Trump’s tariffs. Since then, the dollar has recovered a little while remaining relatively weak, trading at US65 cents.
Despite this, the Compare the Market research found that 33.2% of Australian travellers surveyed said the weak dollar hadn't impacted their plans in any way.
Older travellers are less likely to change their plans based on the weaker dollar, with 42% of Baby Boomers reporting they were undeterred compared to 23% of Gen Z, 27% of Millennials and 35% of Gen X.
Compare the Market researcher Chris Ford said that while some travellers avoid the sting of the weak Aussie dollar by booking in advance, they may be unaware of how it will affect their spending money.
“In some cases, people pre-book their holidays months or years in advance, so there’s a good chance that some Australians may have largely avoided the sting of the recent challenges to the Aussie dollar,” he said.
“However, they’ll probably notice that their spending money doesn’t go as far if they haven’t already locked in a reasonable currency conversion rate.”
He said those planning to use payment methods like credit cards, personal loans or buy now and pay later schemes could especially be left in the lurch.
While many reported making no changes to their plans, some would find workarounds to mitigate the impact of the weak dollar.
Some strategies Australians are implementing to beat the falling dollar include reducing time overseas, limiting overseas spending, switching to a domestic holiday, travelling to cheaper destinations and staying in accommodation.
Around 3% of those surveyed also said they would ditch travel insurance to beat the dollar but Ford advises travelers to make savings elsewhere.
“Travel insurance can protect you against financial losses that arise from unforeseen scenarios and medical emergencies, so it’s worth considering if the worst were to happen on your trip,” he said.
Ford urged that there are many ways Australians can cut back on costs while still having a good holiday.
“If you’re still undecided where you’ll go, keep an eye out for sales that airlines, hotels and travel companies drop, as it could reduce the amount you spend on your trip dramatically,” Ford said.
“Prices are typically much cheaper during the shoulder or off-peak seasons, which is worth considering if you’re trying to stretch your dollar.”
He also advised it is best to convert currency before getting to the airport to get the best deal.
“The market is volatile right now, but you’ll almost always end up with a worse deal if you convert at the airport,” he said.
“Compare well in advance of your trip and consider locking in good prices when you see them.”
