Talk about costly swipes… new ING research shows that Australian travellers who used their debit or credit cards overseas in the past year lost some $600 million in international transaction fees – that’s around $92.62 per person.
And most of us rely on our cards at some point while travelling. Unsurprisingly, according to the study, more than four in five (81 per cent) Australian travellers used their physical or mobile cards for transactions while holidaying abroad.
Less predictably, the study found that more than one in eight (13 per cent) Australians didn’t even know they would incur fees. And while a third of Aussies think these charges are among the top five costs for an overseas holiday, many were caught by surprise.
So what does nearly $100 get you in Europe, for example? Think 15 Aperol Spritzes, three steak frites or paellas or 23 scoops of gelato.
With the Northern Hemisphere summer here, ING’s research also uncovered some other holiday insights.
Of the 70 per cent of those polled who admitted to dreaming of a European holiday, most (61 per cent) flagged affordability as the top barrier to travelling.
On average, Aussies think they’ll need $10,490 for a two-week holiday but are only willing to spend $8,866 – about 15 per cent less.
In addition, the study found that it would take nearly two years for Aussies to save for a European holiday, with a quarter (23 per cent) saying it would significantly strain their savings.
The biggest costs for travellers involve accommodation (86 per cent), flights (85 per cent), food and drink (56 per cent) and experiences (45 per cent).
And the priciest European cities? Paris (76 per cent), London (75 per cent), Rome (55 per cent), Venice (41 per cent) and Amsterdam (32 per cent).
To save for their Euro summer, a third (34 per cent) of the Aussies polled said they would take up a second job or side hustle, another third (33 per cent) would sell unused items or clothes, around a quarter (22 per cent) would turn off heating to save on energy bills and one in seven (15 per cent) would cancel gym memberships.
“While the costs of a European summer may feel daunting for many, Aussies can make it a reality down the line with the right mix of smart budgeting and a conversation with their bank,” ING Australia Head of Consumer and Market Insights Matt Bowen says.
“Our research shows that a huge number of Australian travellers are getting hit by those hidden international transaction fees. That’s why it’s important that Aussies confirm with their banks ahead of time what fees they may be subject to while on holiday.”
So, as you plan your next overseas adventure, keep an eye on those pesky fees and make sure your dream holiday doesn’t burn a hole in your pocket.
This week, Karryon reported that two in five Australian travellers (42 per cent) continue to cling to outdated money habits. According to Mastercard research, Aussies are slow to adopt new currency options despite embracing the security and convenience of digital payments at home.
Money Transfer Comparison founder and managing director Alon Rajic warned Aussies that neglecting to do a little research prior to jetting off could cost a lot of money. Read more here.
