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

Destinations

Skip the rebound surge with South America

For clients eager to travel overseas again but wanting to avoid the summer disruptions, leave Greece or California for another time and head to South America.

Share

CommentComments

Destinations

Events

Top 12 unmissable events for Italian summer trips

Summer in Italy means sunshine, gelato, promenading after dinner, Aperols overlooking the ocean, hiking, cycling…and a jam-packed events calendar.

Share

CommentComments

Aviation

Airport queues return in anticipation of the school holidays

If you were looking for a good chance to relisten to Led Zeppelin’s entire discography but can’t find the time, we recommend booking a flight to literally anywhere from Sydney or Melbourne airport this month.

Share

CommentComments

Destinations

Queensland government mulls tourism tax

In response to this, the NSW government will be introducing an ice-cream tax, which has infuriated primary school kids across the state.

Share

CommentComments

Destinations

South Africa drops all remaining COVID restrictions

Meanwhile, we’ve decided to keep mask-wearing optional in Travel Weekly’s office, mainly to protect us against the office dogs’ various… smells.

Share

CommentComments

Travel Agents

AFTA and CLIA bring back NTIA and the port & destination showcase

Polish your dancing shoes because it’s industry events galore as the two peak bodies reveal the return of two much sought-after happenings.

Share

CommentComments

Aviation

Breaking News

Jetstar CEO to step down as Qantas promises $5,000 boost to employees and more domestic capacity cuts

It’s a day of mixed emotions for Qantas and Jetstar staff today, with bouts of cheering and sobbing breaking out at an alarming rate.

Share

CommentComments

Events

Save the date! Hawai‘i Tourism Oceania announces dates for ‘Aloha Down Under’ roadshow 2022   

by sponsored by Hawai‘i Tourism Oceania

Get your diaries out because Australia and New Zealand’s biggest annual Hawai‘i Roadshow, Aloha Down Under, is on from the 22nd to 29th August 2022. 

Share

CommentComments

Hotels

Marriott launch home rental collection for ANZ

Marriott has launched its new home-rental collection while the Travel Weekly staff have decided to launch a Pokémon cards collection. It’s not quite as significant but at least it’s something.

Share

CommentComments

Road & Rail

Avis launches high-end car rental brand for luxe travellers

Got any clients looking to indulge in their midlife crisis without going the whole hog? We’ve got good news.

Share

CommentComments

Travel Agents

TravelManagers announce speakers for national conference

We heard that the muppets will be there, but we have been watching a lot of Sesame Street lately so we could be getting confused.

Share

CommentComments

Aviation

“I thought I was going to die”: Passenger plane catches fire on runway

Don’t worry, the photo shows a white chemical foam used to put out the fire, not a random snowfall confined to a 30-metre area in Miami as you may assume from a first glance.

Share

CommentComments