New research shows that Kiwis are making big sacrifices to afford travel.
With New Zealand in the middle of the worst cost of living crisis in decades, Kiwis are showing no sign of slowing down their international travel plans, according to new research by global technology company, Wise.
As the price of groceries, fuel and rent continues to soar, Kiwis are charging full steam ahead on their holiday plans and not looking back. This comes as more than seven in ten New Zealanders (72%) admit they’re planning to travel internationally over the next three years.
Kiwis making major sacrifices to afford overseas travel
There’s no doubt Kiwis are feeling the pinch of the cost of living crisis, with more than half saying they need to make sacrifices to afford their international vacations (52%). Some 16% are so keen to travel, they admit they won’t give up a holiday even if they can’t afford it.
It’s clear New Zealanders are prepared to go the distance to afford their holidays – out of those planning to travel overseas in the next 3 years, more than half are now considering putting off important personal plans to afford it (62%). This includes delaying their dream wedding (20%), putting off owning a home (20%), a pet (29%) or even a car (27%).
The eagerness to pack a suitcase and head overseas for some much-needed R&R has left many Kiwis making hefty lifestyle changes to save coin for their travel budget.
But it’s not just lifestyles that are changing – over three in four Kiwis (81%) are switching up their travel behaviours to lessen the blow of the cost of living crisis. This includes reducing travel frequency (37%), only travelling domestically (23%) or within the Pacific region (20%), and opting for free attractions and affordable activities (20%) – all in pursuit of saving cash.
Tristan Dakin, Country Manager at Wise, says Kiwis are travel mad and they won’t let much get in the way of their holiday plans.
“It’s encouraging to see that Kiwis haven’t lost their desire to jet set. But while some savvy travellers are prepared to make lifestyle changes to afford overseas holidays, it’s also important they take a closer look at how they’re paying for things, to ensure they’re getting the biggest bang for their buck.”
How Kiwis are spending overseas
When it comes to paying for things while travelling overseas, Kiwis have room for improvement to ensure they’re getting the fairest deal.
They view debit and credit cards as the most convenient (60%), trustworthy (43%), and cost-effective payment method (30%).
Tristan Dakin, New Zealand Country Manager at Wise said “These days, every dollar counts. That’s why it’s so concerning to see Kiwis losing cash on hidden fees and international transaction fees, simply because they don’t know otherwise. Unlike multi-currency cards, every time you make an international transaction using a bank card, you’re paying high, and often hidden currency conversion fees.
“Banks and currency companies often markup the currency exchange rate by setting their own price, rather than charging the mid-market rate you find on Google. Whereas by opting for a multi-currency card, this could be the difference between looking at the Eiffel tower from the ground below, or enjoying the view from up top”.
Wise’s multi-currency card offers the ability to hold over 40 currencies in your multi-currency account so you can manage your money; provides two free ATM withdrawals of up to $350 per calendar month so you can spend like a local, and it also provides access to local account details in 9 currencies so you can get paid like a local.
“Kiwis now have more choice than ever to decide where their money is going. It’s important they consider their options and shop around. This way, they can make their holiday savings go a lot further,” Dakin concludes.
The Wise card provides a convenient and cheaper way to manage money around the world and has been independently reviewed as the best option for Kiwis.
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 under the ticker, WISE.16 million people and businesses use Wise. In fiscal year 2023, Wise processed approximately £105 billion in cross-border transactions, saving customers around £1.5 billion.
