Australian holidaymakers are paying significantly more for travel services than their international counterparts, with some costs inflated by as much as 127%, according to a comprehensive investigation by cybersecurity firm NordVPN. The research scrutinized prices on numerous booking platforms, exposing a stark disparity costing Australians thousands of dollars.

NordVPN’s investigation revealed that Australians booking travel services such as car rentals, hotel stays, and even theme park tickets through domestic versions of popular websites are charged substantially higher prices than those accessing the same services abroad. Utilizing Virtual Private Network (VPN) technology, researchers were able to simulate browsing from various countries, uncovering dramatic price differences.

Eye-Opening Price Gaps

One of the most startling findings was with car hire. Consumers booking two weeks of car rental in Cancun through the Australian Europcar site paid AU$911, whereas the same rental on the Mexican Europcar site cost only AU$400 – a whopping 127% markup. This significant price hike is not an isolated case. The research highlighted similar discrepancies across several other major travel sites.

For example, booking a family vacation to Centara Reserve Samui via the Thailand-based Agoda site resulted in a price of AU$15,516. In contrast, the same booking on the Australian version of Agoda was AU$17,279, an extra AU$1,763. Additionally, hiring a Fiat 500 from the Italian Hertz site was AU$1,235, compared to AU$1,629 on the Australian site, marking a 24% difference.

The Role of VPNs in Uncovering Price Discrimination

VPNs play a crucial role in this research. VPNs reveal hidden pricing variations by masking users’ IP addresses and allowing them to appear as if browsing from different countries. NordVPN’s Chief Technology Officer, Marijus Briedis, explained, “Millions of us have become accustomed to booking our holidays online, but not all customers are treated equally. Travel websites use online tracking to identify potential customers and adjust prices based on their location and other factors.”

Briedis continued, “Never assume you’re getting the same deal as everyone else. Your location, the number of times you visit a website, and even local holiday schedules can influence the price you’re offered. Our research clearly shows that using a VPN to shop around can uncover substantial savings.”

Detailed Findings and Methodology

The investigation, conducted between April 8th and 17th, 2024, involved simultaneous searches for identical travel products from multiple country servers. The findings, converted to Australian dollars using xe.com, revealed consistent price discrepancies.

While some price differences were minor, the most significant disparities are highlighted to underscore the potential savings. This research marks the second consecutive year of NordVPN’s vacation pricing study, reinforcing that Australians are still subject to discriminatory pricing practices.

Table: Cost of items booked through Australian versus local websites

Source: NordVPN *includes taxes and other charges

Impact on Australian Consumers

The implications of this research are significant for Australian consumers, who could save thousands of dollars on travel expenses by simply using a VPN to access better deals. For instance, travellers can make more informed decisions by comparing prices from different countries before finalizing their bookings.

Briedis advises, “Once you’ve identified your ideal hotel or rental, use a VPN to switch to a local server in the destination country and perform a side-by-side comparison. This strategy could reveal hidden savings and prevent overpayment.”

Conclusion

This investigation highlights a critical issue facing Australian travellers: the substantial price differences they encounter compared to international customers. By utilizing VPNs, consumers can bypass these inflated costs and secure better deals. As the travel industry evolves, being aware of these pricing strategies and employing tools like VPNs can lead to significant savings.

For more detailed findings and tips on using VPNs for travel bookings, visit NordVPN’s official website.

Written by: Yves Thomas

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