Conquering the Rising Cost of Post-Pandemic Travelling
Are you desperately longing for that holiday, but as a university student the increased HECS debt and rising cost of living has pushed aside this desire?
Do not let these concerns hinder you from a holiday, as there are many ways to plan out a well budgeted trip and still enjoy it to the fullest. But first, we will explore the factors which has increased the cost of travelling in a post-COVID era.
Weakening Australian Dollar
The Australian dollar has been weakening and is about to reach a fourteen year low against the Euro. The AUD could buy €0.596 this year, which amounted to a 13% loss in comparison to 2022, where it bought €0.685. Even against the US dollar, the base currency lost 6.1% of its value over the last year.
These comparisons are taken from the Big Mac Index. This index is an internationally used system where the price of a Big Mac burger for a certain country is compared to overseas countries and adjusted for exchange rates. The data then determines whether a currency is under or overvalued against other nations. The current AUD has been in a slump and weak for quite sometime, due to the Reserve Bank of Australia’s (RBA) efforts to slow down the economy, contain inflation and protect housing prices. The AUD losing its purchasing power due to the currency being undervalued means everything will cost more overseas.
Strong Demand
Airlines still have not returned to matching their full capacity of flying internationally at their pre-pandemic levels. They are still in the process of recovering capacity, because airlines know they are making money at the current demand to capacity numbers. Hence, airlines will not need to stimulate cheaper flights, as there is always a person who is willing to pay $50 more than you. These moves are also heightened by companies’ desires to recoup pandemic losses.
Increasing Fuel Costs
Airlines who used to regularly use the Russo-Ukrainian route will need to compensate through more costly and longer routes.
Tips to Save Money on Your Next Trip
1. Be Flexible Around Dates to Travel
Travelling off-peak will inevitably be cheaper, as you always will have to pay a premium when travelling around Christmas and school holidays. If this isn’t possible, prices also vary depending which day you travel on, so try avoiding leaving on a Friday or Sunday which attracts the greatest air traffic. Instead, substitute for a midweek day which will be less expensive. There are also services such as Google Flights which help customers compare dates and prices, as well as view historical average ticket prices.
2. Book as Early as Possible
This is an obvious recommendation and can save you hundreds if not thousands on just air flights. For international travel it is best to book 3-6 months in advance, and for domestic trips 2-3 months to secure the best prices. Always be on the lookout for good deals, such as Boxing Day ones to save even more expenses!
3. Be Flexible Around Travel Options
Just by changing your route and mode of travel you can save a lot of money. For example, instead of flying directly from Dubai to Paris you may consider landing in Belgium first and then taking a train to Paris. Train rides within Europe are convenient and fast, and will save you some money instead of taking the highest demand flight routes
4. Use Cards which Offer Travel Benefits
These come in multiple forms, such as airline credit points to reduce travel fees, hotel credits or even free checked bags and airport lounge access. Furthermore, amongst young travellers, 73% of Gen Z and 75% of Millennials are also more likely to have a travel credit card. These credit cards do not incur the usual 3% transaction fees and provide the highest exchange rates possible.
5. Student Entries
A lot of European tourist sites where tickets are needed, student prices are over 50% cheaper than adult prices. For example, entry to the Colosseum in Rome for students is €4, whereas for adults it is €15. Most of the time they don’t even verify if you are a student or not, so this is another way to save amounts.
Are you desperately longing for that holiday, but as a university student the increased HECS debt and rising cost of living has pushed aside this desire?
Do not let these concerns hinder you from a holiday, as there are many ways to plan out a well budgeted trip and still enjoy it to the fullest. But first, we will explore the factors which has increased the cost of travelling in a post-COVID era.
Weakening Australian Dollar
The Australian dollar has been weakening and is about to reach a fourteen year low against the Euro. The AUD could buy €0.596 this year, which amounted to a 13% loss in comparison to 2022, where it bought €0.685. Even against the US dollar, the base currency lost 6.1% of its value over the last year.
These comparisons are taken from the Big Mac Index. This index is an internationally used system where the price of a Big Mac burger for a certain country is compared to overseas countries and adjusted for exchange rates. The data then determines whether a currency is under or overvalued against other nations. The current AUD has been in a slump and weak for quite sometime, due to the Reserve Bank of Australia’s (RBA) efforts to slow down the economy, contain inflation and protect housing prices. The AUD losing its purchasing power due to the currency being undervalued means everything will cost more overseas.
Strong Demand
Airlines still have not returned to matching their full capacity of flying internationally at their pre-pandemic levels. They are still in the process of recovering capacity, because airlines know they are making money at the current demand to capacity numbers. Hence, airlines will not need to stimulate cheaper flights, as there is always a person who is willing to pay $50 more than you. These moves are also heightened by companies’ desires to recoup pandemic losses.
Increasing Fuel Costs
Airlines who used to regularly use the Russo-Ukrainian route will need to compensate through more costly and longer routes.
Tips to Save Money on Your Next Trip
1. Be Flexible Around Dates to Travel
Travelling off-peak will inevitably be cheaper, as you always will have to pay a premium when travelling around Christmas and school holidays. If this isn’t possible, prices also vary depending which day you travel on, so try avoiding leaving on a Friday or Sunday which attracts the greatest air traffic. Instead, substitute for a midweek day which will be less expensive. There are also services such as Google Flights which help customers compare dates and prices, as well as view historical average ticket prices.
2. Book as Early as Possible
This is an obvious recommendation and can save you hundreds if not thousands on just air flights. For international travel it is best to book 3-6 months in advance, and for domestic trips 2-3 months to secure the best prices. Always be on the lookout for good deals, such as Boxing Day ones to save even more expenses!
3. Be Flexible Around Travel Options
Just by changing your route and mode of travel you can save a lot of money. For example, instead of flying directly from Dubai to Paris you may consider landing in Belgium first and then taking a train to Paris. Train rides within Europe are convenient and fast, and will save you some money instead of taking the highest demand flight routes
4. Use Cards which Offer Travel Benefits
These come in multiple forms, such as airline credit points to reduce travel fees, hotel credits or even free checked bags and airport lounge access. Furthermore, amongst young travellers, 73% of Gen Z and 75% of Millennials are also more likely to have a travel credit card. These credit cards do not incur the usual 3% transaction fees and provide the highest exchange rates possible.
5. Student Entries
A lot of European tourist sites where tickets are needed, student prices are over 50% cheaper than adult prices. For example, entry to the Colosseum in Rome for students is €4, whereas for adults it is €15. Most of the time they don’t even verify if you are a student or not, so this is another way to save amounts.
