Aussies splashing $6bn on holidays splurges, regrettable purchases
Australian travelers spend cash on holidays because they don’t feel like they’re spending real money, leading to impulse buys and regrettable purchases.
Australian travelers are hit with unexpected costs, hidden fees and overpriced tourist traps, costing them $6.4 billion a year, new research has revealed.
Susan Cue travels regularly and says her biggest travel regret was buying a queen-size rug during a six-week trip through the US and Mexico.
“If I want something, I get it,” he said.
While walking through a market in Mexico, Ms Cue spotted a thickly woven black and white shawl with an Aztec symbol on it, perfect for her new apartment in Melbourne.
Even though she was worried about the size of the rug, she bought it anyway because it wasn’t overly expensive.
“At this stage I thought, ‘If you see something and you like it, buy it immediately,'” he said.
Ms. Cue said that although the shop owner folded the rug as best he could, she had to carry it around in a large plastic bag for the rest of the day.
When he returned to his hotel, he folded the carpet and put it under his bag, but it took up half the floor, and he admitted that this happened on the third day of a six-week trip.
“I carried this thing with me every time we moved, for the next six weeks I carried it in the bottom of my bag because I felt like I couldn’t buy anything else because I couldn’t fit it into my already opened bag,” she said.
“It was very difficult.”
Ms. Cue spent hundreds of dollars returning other items from her purse through the mail to make room for her new Mexican rug.
“When I got home, I used it on my bed for a winter, maybe for a second, and then I folded it up and put it away and didn’t remember it again,” he said.
New research from fintech company Wise surveyed 1,500 Australians and found 60 per cent regretted spending while travelling.
This ranged from excessive splurges on souvenirs to expensive accommodation, restaurants and transportation.
Almost three-quarters of holidaymakers said they had been affected by unexpected travel costs such as ATM fees, overpriced tourist traps, foreign transaction fees and taxi fares.
Many admitted to taking precautions to save money for their trips.
But one in two Australians said they would spend the money as if it wasn’t real or buy on impulse and worry about it later when they arrived in the country.
Wise Australia New Zealand Country Manager Tristan Dakin said people were likely comparing options before traveling and making sure they were getting the best deal.
“But after you spend so much money on flights and hotels, it’s easy to tell yourself that the rest doesn’t matter that much,” he said.
“And this becomes even more difficult abroad thanks to different currencies, unusual prices, unexpected fees and the urge to make the most of your trip.
“While we all need to give ourselves permission to have fun, it’s also important to avoid a holiday money hangover when you return.”
Mr Dakin said staying in control when traveling starts with understanding what you’re actually spending.
Wise recently launched a new travel app to help people solve international money problems like finding low-fee ATMs, differences between public transportation, exchange rates, and using cash or card.
“By making money as transparent and convenient as possible, providing a clear and up-to-date perspective on costs, we are helping Australians enjoy their trips without spending regret,” he said.
