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How Much Do Holidays Cost? What To Consider When Planning A Holiday
September 1, 2019●
9 minute read●
If you’re thinking about taking a break or getting away for a while, finances are probably one of the first things to cross your mind. What will be the cost of the holiday and how can you keep expenses down?
It’s easy to blow out your holiday budget with sneaky extra financial costs that you didn’t plan for. The average cost of a family holiday varies greatly based on activities and planning. That’s why it’s so important to be prepared. It’s easy to blow out your holiday budget with additional costs that you didn’t account for, particularly when travelling overseas. There are a few simple ways you can cut back on costs so that you will end up with more spending money.
Jacaranda Finance has done the hard work for you. If you’re wondering ‘how much do holidays cost?’ then here’s what you should keep in mind before jetting off on your next vacation!
Airfares & Transportation
The cost of a holiday is often very dependant on how you intend to get there! Fortunately, air travel is very accessible these days. Airlines are competitive by nature, so many even offer price-match or price-beat guarantees. There are many comparison websites available to see how each airline stacks up. You might even find package deals with accommodation and hire-car companies that can substantially reduce your overall costs. Ultimately, the average holiday cost per person can be drastically reduced when you nab a good flight deal.
Consider travelling out of peak season; this can as much as halve your travel costs. While peak season is perceived as the best time to go, many destinations, particularly those in tropical climates, are temperate year-round. So, if you do your homework, you might find the perfect place at the perfect price, out of peak season.
It’s essential to do your research on transportation before you arrive. Often, public transport can be the way to go. It’s often more cost-effective, but doing your research on the public transport options available in your destination beforehand is critical.
Conversion Rates & Money Access
As most of us know, if you’re heading to the UK or USA, you can lose a lot on the Aussie dollar just in the exchange rate. So, plan your spending money according to the conversion, and remember it won’t be dollar for dollar.
If you are changing cash, be prepared for a little extra cost. Consider using a VISA or MasterCard that’s accepted everywhere. It would be best if you were careful, though, as card fees can add up when you withdraw cash from certain places. Even so, having an accepted card also reduces the risk of carrying around cash for your entire holiday. Your bank can advise you on international transaction fees, and many banks offer cards with no foreign currency exchange fees. Don’t forget to budget some emergency money, and to tuck it away in a separate account or secure place.
Visa And Passport Costs
Before you head off on your big trip, it is essential to ensure your passport is up to date! There is nothing worse than realising a week before departure that your passport has expired… an express passport can be very pricey.
Not many countries require Visas for shorter holidays, but if you find yourself in a situation where you need one, make sure you’ve done your homework. Visas are different in every country, so you’ll need to check with your provider about the exchange rate.
Ever heard of a little thing called Passenger Movement Charge or Departure Tax? Some countries may charge you for both arriving and departing the country. You’d be forgiven for not being aware of it. Most of the time, if a country charges a departure tax, it’s included in your airfare. If it isn’t, you may be hit up for an exit fee at the airport when you’re heading home.
It’s a few hundred dollars that you probably won’t want to fork out, but travel insurance can be an essential expense. Ultimately, you’ll be glad to have it if something unexpected happens. Good health services are a privilege enjoyed in Australia. However, in many other countries, it’s a frightening experience to be sick or hospitalised. There’s also a chance that it could come at a hefty price. Fingers crossed you won’t have to use it, but it could potentially save you thousands of dollars, and prevent you from being stuck in a foreign country when you’re injured or unwell.
Accommodation & Food Costs
Whether you’re planning to spend your nights in a backpackers’ hostel or the lap of luxury, accommodation costs will likely make up the bulk of your travel budget. Package deals with airlines are available on many sites—including last-minute deals if you’re feeling adventurous—and can save you a lot of money. Many hotels and resorts will also offer meal packages included in the accommodation costs. This can save you some cash as well as reducing the health risks of ingesting dodgy food or contaminated water in countries where health codes don’t monitor street vendors and food establishments.
International roaming is notoriously expensive, so prearrange a deal with your provider or order an international SIM card before you take off overseas. Remember, the data you use is often the most common expense from your phone provider when travelling overseas. Your devices will use your data automatically to access mobile apps, voicemail, email, GPS, and many other services.
So, if you haven’t organised a new SIM or deal with your provider (and you haven’t switched off international roaming on your handset), you may be hit with an astronomical bill. To avoid buying a SIM at your destination or walking around in a foreign country looking for WiFi, your best bet is to get a deal from your provider (or a competitor) that allows you to use all your usual inclusions with a small extra fee.
Entertainment & Tourist Activities
You’re travelling for the experience, and it wouldn’t be an experience without some activities and shopping. However, try to avoid throwing your valuable coin away on the typical tourist souvenirs you’ll find on every street corner. Spend some time thinking about what you’d like to bring home with you before you even leave. Budget per day for activities and shopping, and try not to go over it. If you over-shop, you could also be looking at substantial costs for extra baggage on the way home.
Many cities and holiday agents offer discounts on tourist activities if you purchase them as a package. Look for sightseeing tickets and passes, like the New York Pass (which will give you entry to over 80 attractions, for a fraction of what it would cost to buy entry separately, so you only need to visit a handful to make it worthwhile). Many offer benefits, including discounted admission rates like VIP entry to avoid queuing, which could also save you in the currency that is time.
Gratuities & Hotel Fees
Why is it that accommodation can be so expensive? Often, all those little ‘freebies’ are not so free at all. Most hotels will charge at least $20 per night for your room to cover everything you thought was free, including your ‘complimentary’ towels and WiFi. Over a few days or a week, this is still going to add up. It may be packaged into your accommodation costs, but that doesn’t leave you any less out of pocket.
Being Australian, it’s also easy to forget about gratuities or tips. On an all-inclusive cruise, for example, your food and drinks costs are typically incorporated, but the tips aren’t. Be aware you might be billed before you reach your end destination. Some cruise lines will automatically charge passengers a gratuity fee for each day of the cruise, and extra charges on public holidays and weekends.
Wherever you’re headed, it’s important to take the time to draw up a comprehensive budget, and good research will reveal all the hidden costs in paying for your holiday. It’s a lot of homework, but you’ll be glad you did it when you’re enjoying your time away, knowing there isn’t a pile of bills waiting for you at home.
Personal Loans For Holiday Expenses
In an ideal world, you shouldn’t have to worry about your holiday cost.
If you’re looking for a little extra cash to make your big trip unforgettable, then a personal loan could be a convenient option. At Jacaranda, we provide personal loans for holiday expenses. When you apply with Jacaranda, we like to keep things as simple as possible. Our team does its best to ensure the loan application process is as stress-free as possible. You can apply 100% online from the comfort of your own home.
When you apply during AEST business hours, our team will endeavour to get back to you with an outcome in as little as 60 minutes. If your application is approved, our immediate interbank transfer could mean you will have the cash in your account within 60 seconds*. So, if it’s last-minute cash for a holiday that you’re looking for or you want to splash out, Jacaranda Finance could help!
What About Bad Credit?
Bad credit… you’re not alone if you’re worried about a lower credit score. Many Australian’s aren’t proud of their trip digit number. However, at Jacaranda, we look deeper than just your credit report. Yes, we will still conduct a credit check; however, this will not be the only thing taken into consideration. Our team takes a realistic approach to poor credit.
We look at your current employment status, bank statements and regular deposits to indicate whether or not you will be able to repay the loan. At Jacaranda, we’re proud to be giving all Aussies a fair go at a personal loan. Our team understands that life happens and sometimes poor credit is unavoidable. We want to make applying for a fast loan as painless and stress-free as possible!
What Will I Need To Apply?
Planning on applying? The good news is, we don’t do big long-winded applications. Our application process is 100% online, that means you don’t even need to leave the comfort of your own home. There’s no long waiting lines and no paper forms to fill out. Here’s what you’ll need handy when you apply:
- 100 points of ID
- Internet Banking Details (so we can securely access read-only copies of your bank statements);
- You will need to provide us with the reason you are applying for a loan;
- Your MyGov details (if you receive Centrelink or Government benefits);
- Employment details and contact info of your workplace;
- All applicants must be able to prove they are either Australian citizens or permanent residents.
Wondering if Jacaranda will conduct an employment check when you apply for a holiday loan? The answer is yes. Our commitment to responsible lending means we will conduct an employment check. What’s responsible lending? Responsible lending means we will only approve loan applications for people who have the means of repayment – this is the reason why we conduct employment checks.
If you’re concerned about a member of the Jacaranda team contacting your workplace, there is no need to be. Our team is highly experienced and will never disclose any of your personal information or the reason why you are applying for a loan. Your privacy is our priority!
It could be as simple as scrolling up and using our loan calculator to select an amount and repayment period that is right for you. If you apply during AEST business hours, a member of our team could get back to you with an outcome in 60 minutes. With Jacaranda’s instant bank transfer, the cash could be in your account within 60 seconds. Talk about convenience!
Written by Jacaranda Team