Poor holiday planning and budget blunders are leaving the average traveller out of pocket, costing the nation a whopping $4.6 billion a year
New research from Commonwealth Bank has revealed more than one in two (58 per cent) will return from their travels with a financial souvenir, after blowing their holiday budgets by more than $1,554 per person – a national total of $4.6 billion.
The research revealed relaxed attitudes to travel budgeting is causing money mishaps, with a quarter (26 per cent) of Aussies revealing they don’t save any spending money before they go away and one in five (21 per cent) traveling without a holiday budget.
Once on holiday, it’s shopping sprees (60 per cent), unanticipated dining and drinking (50 per cent) and last-minute day trips and experiences (47 per cent) that are the top culprits for overseas overspending – overspending which goes unnoticed given only one in three (36 per cent) travellers are checking in on their spending each day.
“Despite advice from family and friends and budgeting tips and tricks for travellers online, over half (55 per cent) said they made an educated guess when working out their holiday spending money” said Michael Baumann, General Manager Everyday Banking and Payments, Commonwealth Bank.
“Even more concerning was that a third (33 per cent) aren’t putting aside extra spending money for unexpected expenses or overspend.
It’s always advisable to set aside emergency savings that can easily be accessed or transferred from your mobile banking app to your Travel Money Card when unexpected situations arise. It’s also important that travellers are realistic about what they can afford while travelling and keep track of their spending to ensure they are sticking to their holiday budget.”
The research revealed holiday budget blunders were also having knock-on effects when travellers returned home, with over a quarter (28 per cent) making sacrifices when they returned home; choosing to stay in on weekends and eat cheaply.
Travel Checklist for Avoiding Budget Blowout
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Plan for the return home, as well as the holiday: More than one in seven (15 per cent) Australians admit they don’t plan for regular expenses while they are away or when they return home. Ensure your accounts linked to recurring payments have enough money to cover expenses while you’re away and put aside money to cover these expenses when you return.
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Use downtime to check in on your spending: The final days of a holiday are the easiest to overspend, with two thirds (67 per cent) of Aussies admitting this was when they were most likely to forget about their budgets. Make it easy to check in regularly on your holiday budget by choosing a travel money card that is easily accessible through an online app.
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Carry a mixed wallet: When travelling overseas, Australians turn to emergency credit cards or savings (78 per cent) or mum and dad (31 per cent of Gen Z travellers) when their holiday budgets run low. In order to avoid phoning home for help, it’s important to carry a mixed wallet of local cash, alongside your credit or debit card and a travel money card. Travel Money Cards can reload in real time from their linked transaction and savings accounts.
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Lock in exchange rates before you travel: Fluctuating exchange rates are a real concern for Aussies when putting together their holiday budgets (31 per cent) so lock in the exchange rate for up to 13 currencies with a Travel Money Card so you always know how much to spend at ATMs, in-store, over the phone or online.
Independent research company, ACA research, conducted the CommBank survey during April 2018 with 1,073 Australian respondents over the age of 18 who travelled overseas in 2017/2018.
