The value of the Aussie dollar may be falling, but some other currencies are too making travel to those countries cheaper than before.
The Australian dollar reached a 28-month low of just 66.2 US cents on Friday, September 23, which is a further drop of eight per cent since the start of the year.
That means that travel to America is likely to become more expensive.
But that doesn’t mean travel everywhere will.
“Some currencies are likely to continue to fare worse than the Aussie over the next few months, particularly as Australia’s terms of trade remain very high, buoyed by high energy prices,” AMP chief economist Shane Oliver said to the AFR.
Despite America being more expensive than it was a year ago, other destinations remain a favourable option.
Our dollar is faring 17.5 per cent better against the Japanese yen, 11 per cent better against the British pound and 10 per cent better against the New Zealand dollar.
Turkey’s and Argentina’s currencies have also become much more affordable for Australians to buy. The dollar has gained 90 per cent and 34 per cent, respectively, on the lira and Peso.
Finder travel expert, Stephanie Yip said: “There are some currencies which the Aussie dollar has appreciated well against.”
She shared Mr Oliver’s sentiment and recommended Japan as a destination.
“Aussies will find their money stretching further this year in Japan where the Aussie dollar has increased its value by around 17 per cent. Japan is also finally open again to tourists, following some of the strict travel restrictions in place during the pandemic.”
Airline prices have been extremely volatile over the last few months with the cost rising by 56 per cent in the last four months. That is the biggest increase in over a decade according to the ACCC.
Ms Yip gave tips on how to save on your holidays.
She recommends setting up price alerts for destinations that you are keen to travel to and using booking sites like KAYAK and Skyscanner to find the best price available. She also noted that Jetstar, Qantas and Virgin send reminder alerts based on past searches.
It’s helpful to book as early as possible and to be flexible with your travel dates.
“Avoiding the school holidays if you can is a good way to keep costs down as these are peak seasons that come with peak prices.
“November and February are two of the cheaper months to travel that still have great weather in most parts of Australia.”
Looking for more ways to save on a holiday? Read our tips.