Why your Bali holiday is getting even cheaper
As travel gets more complicated and expensive, Aussies are seeking out dream holiday destinations that are easy on the wallet.
And thankfully, the AUD is complying - our dollar has hit a four-year high, strengthening across a range of major currencies.
Among those are some destinations that are already popular budget-friendly Aussie holiday spots, proving now is the best time to book that ticket.
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Indonesia offers budget luxury. Getty Images/iStockphoto
"When the AUD is strong against a local currency, it can significantly boost your spending power across accommodation, dining and day-to-day experiences at your chosen destination," Tristan Dakin, ANZ Country Manager, Wise, tells nine.com.au.
Indonesia - specifically Bali - has long been an Aussie favourite. And now, trips there are looking cheaper than ever.
The Aussie dollar is up 17 per cent against the Indonesian Rupiah over the last two years, meaning you can really get bang for your buck.
Tristan says that it's the perfect excuse to see more of Indonesia.
"While Bali remains the main entry point, more travellers are branching out to destinations like Lombok, known for its quieter beaches, and Labuan Bajo in Flores, which is the gateway to Komodo National Park."
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Flores Island is an hour's flight from Bali. Getty
Just keep in mind that Indonesia is a very cash-forward country, but ATM fees can be steep.
Recent Wise data found that travellers in Indonesia paid an average of 10 per cent per transaction in operator fees, making it the fourth most expensive travel destination overall for ATM withdrawals.
Tristan recommends you use card payments wherever possible, use only bank-operated ATMs, withdraw larger amounts less frequently, and choose to be charged in local currency rather than AUD.
"This last move will help you avoid dynamic currency conversion, which usually means higher fees."
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Don't get stuck with massive ATM fees. Getty
The AUD is also particularly strong in Japan.
"Japan continues to stand out, with the Australian dollar up around 25 per cent against the yen over the past year and more than 35 per cent over five years," says Tristan.
That means that your holiday could be more than a quarter cheaper.
It's no wonder Japan has recently overtaken Indonesia as Australians' most-visited Asian hotspot.
However, huge demand for tourism recently has led to bigger crowds and driven higher prices in some areas, says Tristan. For example, popular hotspots are seeing increased costs, including tourist taxes in Kyoto, fees to climb Mount Fuji, and two-tier pricing at certain attractions
"For those looking to maximise value, heading beyond the major cities can make a big difference."
The Aussie dollar goes really far in Japan. Getty
The AUD is also up against the Vietnamese Dong and the Philippine Peso - two emerging destinations which Aussies have been choosing to explore.
Both these countries in Southeast Asia offer budget-friendly holidays that are great for couples, families, and solo travellers, with off-the-beaten-path experiences that aren't quite as crowded as places like Japan and Bali.
Plus, Jetstar's recently-added direct flight service from Brisbane to Cebu makes it even easier for Aussies to plan a trip to the stunning islands of the Philippines.
It's now even easier to fly direct to Cebu. Getty
South Korea has also been floated as an alternative for Aussie travellers who have already checked out Japan, or want to holiday somewhere different.
Last year Inside Travel told nine.com.au local interest in South Korea has "risen dramatically": "It is now one of the strongest performing and fastest growing destinations across the InsideAsia portfolio."
It's also a place where our AUD is overperforming - strengthening 23 per cent over the last two years.
Seoul is an increasingly popular spot for Aussies. Getty
Where the AUD is strengthening for Australian travellers
- India: AUD up ~21 per cent YoY (near five-year highs)
- Sri Lanka: AUD up ~18 per cent YoY
- Philippines: AUD up ~17 per cent YoY (near five-year highs)
- South Korea: AUD up ~16 per cent YoY (~23 per cent over five years)
- Indonesia: AUD up ~14 per cent YoY (~17 per cent over two years)
- Vietnam: AUD up ~13–15 per cent over the past 1–2 years
- Japan: AUD up ~25 per cent YoY against the Yen and ~35 per cent over five years
- New Zealand: AUD up ~13 per cent YoY
