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Are you thinking about a holiday? I know I certainly am, as months upon months of Melbourne’s cold winter have really started to wear at my mental health and the lining of my black puffer jacket.
Australians are pretty good when it comes to taking holidays, thanks both to our general geographical remoteness and our excellent annual leave policies (something the American mind cannot comprehend).
Indeed, according to recent research from Finder, 60 per cent of us – the equivalent of 13.1 million people – are planning a holiday in the next 12 months, a number that remains pretty stable year on year. Not all of it is international travel of course, but a pretty decent chunk (three quarters to be exact) is, which is where things start to get pretty pricey.
What’s the problem?
As someone who’s just about to jet off to Europe, I can tell you plane tickets are phenomenally expensive (even when you save $700 by flying China Eastern), and don’t get me started on accommodation and food costs. Even a modest holiday in a relatively inexpensive part of the world can cost you multiple thousands of dollars, and far more if you’re travelling as a family.
What you can do about it
So to help you find some ways to save money (and definitely not for my own self-interest) I’ve asked some finance gurus for their favourite travel tips:
- Do your research and be realistic: Gemma Mitchell, head of education at Rask, says the most important thing when it comes to booking and planning a trip is a sobering dose of realism. Not knowing what your expenses will be and just hoping for the best is a quick way to run out of money. “Look at what meals actually cost where you’re going, what activities you want to do and what you’re likely to spend each day,” she says. “There’s no point setting a super-tight budget that doesn’t reflect how you actually want to travel.” Further to this, Mitchell says it’s also important to prioritise your spending when you travel to make sure you allocate your funds to things you actually want to do. “You might be happy to cook a few meals at your accommodation instead of eating out if it means having more money for experiences, better accommodation or making the trip last a little longer,” she says.
- Always compare: Just jumping onto your favourite airline or hotel chain to book may be easy, but it’s not going to land you the best price. There are numerous websites that can help you find the best deals, says Lexi Smith, financial advisor at Moneyvine, who suggests using Google Flights and Google Hotels to help you compare. “Don’t compare on price alone, though. Being near public transport or having a kitchenette may reduce your other holiday expenses,” she says. This also stretches to things such as travel insurance, with Smith saying she’s used AI tools like Claude Cowork as an effective way to compare different insurers’ product disclosure statements to ensure you’re getting the best coverage for your money.
- Keep a little bit aside: Once you’ve got your destinations locked and your funds saved, Cara Williams, financial adviser at The Hazel Way, suggests setting some of that aside in a separate “say yes” fund. “Keep some money deliberately unallocated for unexpected experiences, so you can say yes without stealing from tomorrow’s budget or making ‘I’m already here’ an excuse to splurge,” she says. “Also use a separate travel spending account to keep your remaining holiday budget visible in real time, without it getting lost among bills and everyday spending.” Williams also recommends making sure your budget has a buffer for “travel friction” such as missed trains/flights, changed plans or last-minute taxis, which are part and parcel of travelling in unfamiliar countries. “Leave some room in your budget for when things don’t go to plan,” she says.
- Use a local bank, not a travel card: Travel cards issued through your bank or cards like Wise are often touted as the best options for travel spending, and they’re certainly a solid choice. However, Ronit Fazekas from My Money Practise instead suggests creating an account with Bendigo Bank’s digital bank Up, which has no fees for international transactions and no fees for taking money out overseas, with no limit. “Most of all, you don’t need to lock in currency – you can just spend in whatever country you’re in. You can also turn on Travel Mode, which shows you how much the total balance in your account is worth in the local currency. I find it really handy,” Fazekas says.
- Get off the beaten path: Finally, Williams says you can often find the cheapest, not to mention most enjoyable, experiences when you move away from the big tourist areas. “Restaurants beside major landmarks often charge for the location,” she says. “Ask locals where they eat or walk a few streets back for better, cheaper and more authentic food.”
Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.
Dominic Powell is the Money Editor for the Sydney Morning Herald and The Age.Connect via X or email.