Tourism

Aussie dollar drops as inflation causes overseas travel prices to rise

Ali Coulton

Ali Coulton

The Aussie dollar dropped to its lowest levels since the GFC over the weekend, as new inflation figures show a rise in overseas travel prices.

Experts said the drop was caused by trade tensions between the US and China, sinking the currency as low as 67 US cents, the lowest it has been since March 2009.

The drop would have been a nasty shock to anyone travelling in the US or Europe over the weekend, and experts predict further drops will continue to shake travellers confidence.

The dollar has since bounced back, sitting at 68 US cents at the time of publishing, but according to a blog on the Travel Money OZ website, we could be in for more losses and certainly continued instability on the foreign exchange market.

The Sydney Morning Herald reported the drop was caused by a series of tweets from US President Donald Trump, who said the United States would impose further tariffs on Chinese imports beginning in September.

Richard Grace, chief currency strategist at the Commonwealth Bank told the Sydney Morning Herald the dollar is likely to remain under pressure as trade tensions grow.

On the bright side, Flight Centre’s media and investor relations manager, Haydn Long, told Travel Weekly the dollar doesn’t tend to have too much impact on where people travel.

“The outbound travel market tends to grow every year, regardless of the dollar’s value against the US dollar,” Long said.

He told us that if people are concerned, they are more likely to adjust their spending at the destination, for example, they may stay one less day or opt for an apartment so they can eat in more.

However, while a weak dollar may translate to less in-destination spend, Long said this is offset by travellers spending more on experiences before they go, softening the effect on travel agents.

The dollar drop comes as new inflation figures indicate a 2.7 per cent increase in the cost of overseas holiday travel and accommodation, the ABC reported.

However, now might be the best time for travellers to explore their own back yard, with the same figures showing a 1.5 per cent drop in the price of domestic travel.

SEE WHAT PEOPLE ARE SAYING

Leave a Reply

You must be logged in to post a comment.

Tourism

Norwich Cathedral farewells controversial ‘helter skelter’ with Bishop’s sermon on slide

by Christian Fleetwood

Yes, that is a Bishop on a shiny orange slide, and yes, he delivered a sermon on it. If you’re confused, here’s all you need to know about this whacky tourism initiative.

Share

CommentComments

Aviation

Aviation wrap: Virgin’s Aussie-first, Win a year of free travel with Jetstar, Hawaiian Airlines’ new Maui-Las Vegas flights + MORE

Gearing up for your next airfare? Well, you’re in luck, as Travel Weekly brings you its Tuesday special for all things aviation.

Share

CommentComments

Aviation

Old Berlin airport proposed as site for drive-in sex booths

by Christian Fleetwood

Proving once again that Travel Weekly publishes just about anything loosely related to travel comes this story about Berlin’s old airport.

Share

CommentComments

Cruise

Tune in to Silversea’s webinar TODAY to learn what’s new + the chance to win big!

The great news is there is still time to register for this webinar! Read on to find out how.

Share

CommentComments

Aviation

Qantas caps regional fares amid overpricing claims

The national carrier has capped rural fares in 16 towns across Australia amid public outcry over four-figure fares for outback destinations to reach the closest capital city.

Share

CommentComments

Tourism

“They didn’t offer beer at all”: These are the best one-star reviews of the world’s seven wonders

From decrying the lack of beer at Chichen Itza to finding the Colosseum downright creepy, these are the best of the worst when it comes to online reviews.

Share

CommentComments

Cruise

Tasmania sets sights on cruise tourism boost with plans for new regional ports

by Christian Fleetwood

Tasmania has set an ambitious three-year plan to have suitable cruise vessels, small to large, visiting regional ports across the state.

Share

CommentComments

Destinations

Events

ATTN AGENTS: Singapore Tourism celebrates socialisers with new roadshow + campaign!

The Find your TribeSingapore Tourism Trade Roadshow 2019 is just around the corner! Here’s all you need to know to find your tribe and get your name on the guest list.

Share

CommentComments

Events

Wholesalers

Intrepid Travel co-founder to reveal learnings from Al Gore at Travel DAZE 2019

At Travel DAZE 2019, attendees will hear from one of the first people to undertake Al Gore’s carbon training in 2010: Intrepid Travel co-founder Darrell Wade!

Share

CommentComments

Aviation

Fight breaks out on plane as Delta passengers face seven-hour delay

It appears a Lord of the Flies situation has broken out onboard an Airbus A320 after passengers were allegedly stranded with no food or water. Luckily, they managed to document the chaos on Twitter.

Share

CommentComments

Wholesalers

Wholesaler wrap: G Adventures’ big Antarctica sale, new AAT Kings tours, Wendy Wu to set sail down the Mekong + MORE!

If there’s one thing we love about Mondays, it’s seeing several gobsmackingly good deals on tours around the world. And that’s exactly what you’ll find in this week’s wholesaler wrap.

Share

CommentComments

Aviation

WATCH: Virgin Galactic showcases new Spaceport passenger lounge

by Christian Fleetwood

With designs marrying Earth and sky, Virgin Galactic’s Spaceport lounge aims to serenade the one per cent that can afford a trip to space in style.

Share

CommentComments