Aussies splashing $6bn on holidays splurges, regrettable purchases

Australian travellers are splashing cash on holidays because they do not feel like they are spending real money, leading to impulse purchases and regrettable buys.

New research has revealed Australian travellers are getting stung by unexpected costs, hidden fees and overpriced tourist traps – costing them $6.4bn a year.

Susan Cue travels regularly and says her biggest travel regret was purchasing a queen size rug on a six-week trip through the US and Mexico.

“If I wanted something, I got it,” she said.

Ms Cue was walking through a market in Mexico when she spotted a thick-woven black and white throw with an Aztec symbol that was perfect for her new apartment back in Melbourne.

While she was concerned about the size of the rug, she bought it anyway because it was not overly expensive.

“By that stage I got to the point that I thought, ‘If you see something and like it, get it straight away,” she said.

Ms Cue said despite the shopkeeper folding up the rug as best as they could, she had to lug it around in a huge plastic bag for the rest of the day.

When she returned to her hotel, she folded the rug up into the bottom of her suitcase but it took up half the space, admitting it happened on the third day of a six-week trip.

“I carried this thing every time we moved, I carried it in the bottom of my case for the next six weeks feeling that I couldn’t buy anything else because I couldn’t fit it in my case that was already unzipped,” she said.

“It was just damn difficult.”

Ms Cue ended up spending hundreds of dollars to send back other items in her suitcase via the post just to make room for her new Mexican rug.

“When I got home I used it on my bed for one winter, may be a second, then I folded it up and put it away and I didn’t remember it again,” she said.

New research by fintech company Wise surveyed 1500 Australians and found 60 per cent had a spending regret while travelling.

This ranged from excessive splurges on souvenirs, to expensive accommodation, restaurants and transport.

Almost three-quarters of holiday-makers said they had been stung by unexpected travel costs including ATM fees, overpriced tourist traps, foreign transaction fees and taxi fares.

Most admitted taking measures to save for their trip.

But one in two Australians said upon arrival, they would spend money like it is not real, or impulse buy and worry about it later.

Wise Australia New Zealand Country Manager Tristan Dakin said people likely compared options before they travelled and made sure they were getting the best deal.

“But once you’ve spent a lot on flights and hotels, it’s easy to tell yourself the rest doesn’t really count,” he said.

“And this is made harder overseas, thanks to different currencies, unfamiliar prices, unexpected fees, and the urge to get the absolute most from your trip.

“While we should all give ourselves licence to enjoy ourselves, it’s important to avoid a holiday money hangover when you return.”

Mr Dakin said staying in control while travelling started by understanding what you were actually spending.

Wise recently launched a new travel app to help people work out international money problems such as locating low-fee ATMs, public transport, exchange rates and the difference between using cash or cards.

“By making money as transparent and convenient as possible, with a clear, up-to-date view on costs, we’re helping Aussies enjoy their trips, without looming spending regret,” he said.