It’s no secret that Kiwis love a good holiday! Recent research shows us that not even the cost-of-living crisis is enough to slow down the desire to jetset; with seven in ten Kiwis (72%) planning to travel overseas in the next three years.
But during these tough economic times, it’s clear many New Zealanders are tightening their purse strings and looking for new ways to make their money go that extra mile, especially when they’re trying to plan for their next holiday.
So for anyone desperate to go overseas and make the most of their travel funds, here are some money-saving tips that will surely help you get more bang for your buck:
Book flights on a Sunday: If you’re planning on booking your flights on a Friday, think again. Friday’s are notorious for last-minute travel bookings, often causing a hike in airfare prices. So if you’re wanting to save some money, it’s best to hold-off until Sunday afternoon to book. Although booking on a Sunday won’t always be able to guarantee you getting cheaper airfares, it’s likely to improve your odds.
Go incognito: When you’re booking flights, activities and accommodation for your next holiday, make sure to use the incognito browser online. This should be an option on the upper right-hand corner of your computer screen, labelled ‘New Incognito window’. This mode ensures you can browse privately, preventing online tracking so companies can’t hike up their prices if you visit their site regularly.
Avoid using a bank card overseas: Whether you’re booking accommodation or flights on a third party website, ordering an Uber in Japan or buying a new pair of shoes in Italy, avoid using your bank card overseas (both credit and debit cards). Most banks charge a foreign or international transaction fee (sometimes both), often ranging anywhere from 2 – 5% of the full transaction amount. Currency conversion fees are confusing and often hidden, with many people not even realising they’re paying a premium to their banks. When you return from your holiday, the last thing you want to get stung with is a hefty bill full of fees you had no idea you were paying.
Instead, look into getting a multi-currency card, which is an international debit card where you can hold various currencies and seamlessly switch between them, meaning you can always pay in the local currency. It also lets you spend abroad with the real exchange-rate, no markups and no sneaky transaction fees. The good folks at MoneyHub have an independent comparison guide on all the multi-currency cards in the Kiwi market, which refers to Wise as their favourite travel card.
Travel off peak: Although a European summer is all the rage, travelling during peak season will hike up prices by a hefty amount. Consider booking your trip in the shoulder seasons like Autumn and Spring – not only will this save you money but you can beat the long lines and sweaty crowds too.
Always pay in the local currency: If you’re ever given the option to pay in the local currency or your home currency, ensure you opt to pay local, to avoid ‘dynamic currency conversion’ costs. This is a confusing but common currency trap which often happens at Eftpos or ATM machines. Banks markup the currency exchange rate by setting their own price rather than charging the mid-market rate you find on Google. On top of the markup, they often charge a transfer fee, so they’re cashing in twice for every transaction and there’s no law stopping them from doing this.
This means Kiwis are charged hefty fees and markups every time they opt to pay in NZD, instead of the local currency. For example, if you’re shopping from an American retailer (be it online or in person), pay in USD rather than NZD, with your multi-currency card, to avoid the retailer using their own currency conversion.
Get insurance: Heading to Australia for a quick weekend away and thinking about skipping insurance? You might get away with it, sure. But on the off chance that your trip doesn’t quite go to plan, it’s better to be covered so you don’t end up in a situation where you’re paying for your holiday for decades to come.
Choose your ATM wisely: Do your research before taking cash out of an ATM. If there are several ATM’s within a short distance of each other, it’s worth comparing rates as fees will vary from bank to bank (note that an airport bureau de change tends to be the priciest way to go). It’s also important to avoid withdrawing money on a credit card – not only will the fees be high, but you’ll also be charged interest.
These days, every dollar counts. That’s why it’s crucial to take a closer look at where your money’s going, consider your options, and shop around – this way, you’ll be able to make your holiday funds go the distance.
About Wise: Wise is a global technology company and with Wise Account and Wise Business, people and businesses can hold over 40 currencies, move money between countries and spend money abroad. It is one of the world’s fastest growing, profitable tech companies and is listed on the London Stock Exchange. Sixteen million people and businesses use Wise.
