As Australians gear up for more travel in 2024, a recent survey by Revolut, conducted with YouGov, reveals both exciting trends and significant financial challenges. Despite a growing enthusiasm for travel, Australians are frequently hit with substantial banking fees, underscoring the need for more savvy financial planning.
Travel Trends Among Australians in 2024
The survey, which included over 1,000 Australians aged 18-65+, highlights that one in five Australians plans to increase their travel spending in 2024 compared to 2023. This aligns with the broader trend of rising passenger departures from Australia, which exceeded 7.25 million in 2023.
Interestingly, Australians are diverse in their travel preferences:
- Budget/Value Travelers: Nearly a quarter (23%) are budget/value travellers.
- Experiential Travelers: Close to 20% are experiential travellers.
- Luxury Travelers: Only 5% consider themselves luxury travellers.
This preference for value and experiences over luxury is particularly noteworthy amidst the rising cost of living.
The Financial Burden of Travel
One of the most striking findings from the survey is the high incidence of banking fees among Australian travellers. Over 40% of respondents admitted to paying foreign exchange (FX) fees for overseas purchases. Additionally:
- More than one in three have been charged currency conversion fees.
- One in four have paid dynamic currency conversion fees in their home currency rather than the local currency.
- Another 25% have faced ATM withdrawal fees from non-partner banks or international ATMs.
These fees can quickly add up, turning a dream vacation into a financial headache.
Payment Preferences and Challenges
The survey sheds light on the payment methods Australians use while travelling:
- Cash: 54% still rely on money.
- Credit Cards: 40% use credit cards.
- Debit Cards: 48% use general debit cards, which often incur fees.
Despite the digital revolution, many Australians still depend on physical currency exchanges. Nearly half (46%) use currency exchange services, with more than a quarter doing so before travel and 18% after arriving at their destination. This reliance on traditional methods highlights the need for better financial tools and education.
The Role of Fintech Solutions
Revolut, a global fintech with over 40 million customers, offers a promising solution to these financial challenges. The Revolut app provides competitive currency exchange rates, allowing users to avoid the high fees associated with banks and traditional money changers. With Revolut, Australians can:
- Spend in over 140 currencies.
- Store more than 25 currencies in their Revolut wallet.
- Withdraw up to AUD 350 monthly without withdrawal fees (although ATM-specific fees may apply).
Charlie Short, Head of Growth at Revolut Australia, emphasized the company’s mission: “For too long, banks have charged Australians unfair fees on foreign exchange and overseas transactions. It’s hard-earned money that shouldn’t be going to the banks. That’s why we’re here. Revolut lets Aussies spend and transfer money globally at great rates, with no-fee currency exchange up to AUD 2,000 per month on weekdays. Our mission is to make financial services fair for all.”
Financial Security While Traveling
Ensuring financial security while travelling is crucial. The survey identified the top measures Australians take to safeguard their finances:
- Notify Banks of Travel Plans: 45% inform their banks to prevent card blocks.
- Enable Two-Factor Authentication (2FA): 30% use 2FA online banking.
- Card Freezing/Locking Capabilities: 30% utilize these features in case of loss or theft.
- Transaction Alerts: 30% set up alerts to monitor activity.
- Prepaid Travel Cards: 25% use these for added security.
The Wishlist for Travel Money Apps
Australians have clear preferences for the features they want in travel money apps:
- Competitive Currency Conversion Rates: 50%
- Card Freezing/Locking Capabilities: 49%
- Real-Time Transaction Notifications: 43%
Revolut meets these needs, offering instant card freezing, single-use virtual disposable cards for secure online transactions, and the ability to generate up to five cards a day for enhanced security.
As Australians prepare to travel more in 2024, they face exciting opportunities and financial challenges. The rising trend in travel spending highlights the importance of value and experiences and the significant impact of banking fees. With the right tools and knowledge, such as those offered by Revolut, Australians can enjoy their travels while minimizing unnecessary costs. This shift towards more financially savvy and secure travel practices marks a significant step forward for Australian travellers.
Written by: Michelle Warner
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