How a strong Aussie dollar can help your holiday budget stretch further

Overseas holidays sit high on many Aussies’ financial wish list. And right now, the exchange rate is doing a bit of the heavy lifting for travellers.

The Australian dollar has strengthened against several popular travel currencies, which means your holiday budget may stretch more than it did a year ago. Considering Aussies have reported spending around two years saving for a trip, every bit of extra purchasing power goes a long way.

The key is knowing where the value currently sits and how to lock it in.

Where your dollar is working harder

Australians are natural globetrotters, but it’s hard to fully experience a new country if its currency is working against you.

As a digital bank that travels alongside our customers, we’re seeing Aussies increasingly broaden their horizons to a few key countries, including:

While these countries have historically been favourites for Aussies, the current exchange rate environment is amplifying their appeal – so for travellers, that can translate into more meals, more experiences, and more flexibility once you land.

Of course, currency markets move quickly. Geopolitical shifts, US economic data, and central bank decisions here and overseas all influence where the Aussie dollar heads next. But for now, conditions look good for a break.

Book smart, spend smart

Whilst acknowledging that foreign currency can move quickly, if you’re considering a holiday in the destinations above and are looking to lock in the rates right now, there are several options to consider:

First, many digital booking platforms allow you to pre-pay for accommodation or experiences upfront. That can help lock in today’s exchange rates rather than leaving everything exposed to future currency swings.

Secondly, once you’re on the ground, using a bank card that doesn’t charge international transaction fees and offers real-time currency conversion can allow you to get the market rate at the time you tap or swipe.

Making your savings go further

 Past ING research has shown Aussies invest significant time and money into their overseas holidays, with  the average leisure traveller willing to spend $7,310 on a two-week international trip, with flights and transfers (27%) and accommodation (26%) accounting for more than half of that budget.

But it’s what comes after that often shapes the experience. Around 20% of budgets go toward food and dining, and 17% is allocated to activities, tours and attractions.

That’s why ING has partnered with TripAdvisor to offer a 20% discount on travel experiences in destinations including Japan, Indonesia, New Zealand, the US, Vietnam and Thailand. As a meaningful part of most holiday budgets, a saving here could help free up funds for something extra or simply keep more money in your pocket.

And with a stronger dollar, a bit of planning, and smarter booking choices, your hard-earned savings will stretch even further.

When you’ve spent years saving for a trip, every little bit adds up, helping you spend less time pinching pennies and more time on the beach.

Matt ✌️