Katherine Times

How will inflation impact Aussies travelling overseas?

How will inflation impact Aussies travelling overseas?
How will inflation impact Aussies travelling overseas?

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In Australia, the economy is expected to hold onto some momentum as we continue to make our way through 2022. The opening of international borders will help with the forecasted GDP growth of 3.5 per cent, not just from the economic impacts of tourism, but also with the easing of many supply chain issues.

That being said, the first three or four months of the year have not been easy for many Aussie citizens, with unprecedented weather, a geopolitical crisis that is causing global inflation and, of course, we are still dealing with the impact and the aftermath of the COVID-19 pandemic.

Despite all of these issues and potential doom and gloom stories, Australians are continuing to schedule international travel plans with zeal.

After more than two years of lockdowns, couples, families, friends, and solo travellers are itching to get back out on the road. The only issue that seems to be standing in their way is the fact that AUD to USD currency rates are not what they once were, making international travel more expensive than ever before for many Aussie travellers.

Let's take a look at just a few other ways that inflation could impact Australians who are planning an overseas trip.

Adapting your budget

Inflation doesn't just bring changes to the numbers outputted by your currency converter. It can also come with an increase in costs across the board.

If you are planning a trip overseas later this year, you can be sure that inflation will have pushed up the prices of just about everything, from your airfare to accommodation rates, admission costs for attractions and activities, the costs of all your meals, and virtually all other elements of your travel plans.

However, before you run off to cancel your trip, it's important to avoid getting bogged down in those "averages" that many publications are posting online.

When it comes to budgeting for your holiday, look at where you are planning to stay, what you are planning to do and where you are planning to go.

Travel styles can vary quite a lot from one person to the next, depending on whether you travel first class or take an economic approach.

Your own travel preferences must be taken into account when you're looking at average costs, so make sure that you base your budget on the costs that you will actually be likely to pay rather than what's provided by travel agents or travel blogs.

Be prepared for higher prices

There's nothing worse than going on a holiday and having to watch every single cent that you spend. Not only is it not relaxing to travel like this, but it also can lead to you feeling like you are missing out on certain activities or experiences simply due to financial constraints.

If you are choosing to travel during this period of global economic flux, the best thing that you can do for yourself is to just maintain an awareness of the realities of inflation, and be prepared for higher prices.

Complaining and moaning about the increase in cost will not make your holiday any cheaper. In fact, it may very well make it worse.

Contrastingly, having the right attitude will help 'soften the blow', so to speak, and support you in maintaining a level head when assessing any purchases you'd like to make over the course of your trip.

You may find that not all the expenses you're preparing to make are even necessary in order for you to enjoy your travel destination to the fullest. In fact, taking on some budget travel tips may actually help you experience your selected travel destination through the eyes of a local.

For instance, opting to eat from a street cart over a fine dining establishment will arguably allow you to experience a more authentic dining experience.

Minimise the impact of inflation

Although all costs are somewhat on the rise, there are some elements of your trip that may be far more expensive than others. One particular element you'll absolutely want to consider is the spike in costs of car rentals.

If you have been dreaming about a road trip in some faraway land, now may not be the best time for your big adventure. Instead, consider travelling by using local public transport networks to get around, just to reduce the impact of inflation on your trip.

You may find that travelling via public transport may actually help you see so much more of your travel destination as well. You'd be surprised by how much more of a city you can see from the window of a bus than from behind the wheel of a car.

Likewise, the cost of eating in restaurants continues to climb, so if you are travelling with a family or you are footing the bill for a larger group, why not consider self-catering accommodation?

Being able to make breakfasts every day, pack up lunches to bring with you, and have the ability to cook even some of your meals in your accommodation, will reduce your meal spending significantly.

Don't allow inflation to spoil your next overseas trip

If you are planning your next overseas holiday, you will certainly need to consider the rising costs that exist in just about every major travel location.

And whilst the impact of inflation cannot be completely avoided, by following the tips outlined above, you can at least ensure that these rising costs do not completely ruin your trip.

With the right mindset, planning and preparation, you can ensure that your next overseas adventure doesn't fall victim to the impact of inflation.