Expert tips to help holiday-makers get the best deal

Thursday, 21 April 2016

Planning a winter getaway but don't want to completely empty out your bank account?

Some forward-thinking and a bit of extra research will help deliver a more cost-effective break.

Consider on-the-ground costs

If you are thinking about a cheap holiday destination, you probably focus on places that are closest to home: Australia, Rarotonga, maybe other Pacific Islands.

But travellers are being told that if they want a great deal on the overall price of their holidays, they should consider the cost of living once they reach their destination.

READ MORE: Six spots where it's cheap to stay

Flight Centre's Travel Money has released a Holiday Costs Index that shows South Africa is one of the best-value destinations this year. Thailand is close behind.

If you compare a five-day holiday, with accommodation, a meal out each day for two people, a pint of beer and a taxi to and from the airport, in the Gold Coast this will cost about $1370 excluding the airfare. In Thailand the same would cost around $540.

Malaysia and Bali are also inexpensive places to holiday. Regional leader of Travel Money NZ Scott McCullough said a night out with a meal and beer in those countries would cost about $6 per person, compared to $58 in Singapore.

'A lot of people jump over to Australia thinking it's a great cheap holiday but on the ground it's the same price if not more than New Zealand. If they went to Bali they would pay a bit more for the airfare but on the ground it's a lot cheaper. A beer might be $2 or $3 in Bali versus $8 in Australia.'

He said the low cost of transport in Fiji also made it a cheap option for those who did not want to travel so far.

He said it was worth travellers spending time researching potential destinations.

'Our research found wide variations in on-the-ground costs between popular holiday destinations that Kiwis travel to, showing that those people who are prepared to put in some ground work before they book and travel can make their dollar stretch further.

'It's not always about choosing the cheapest airfare, picking a destination where the cost of living is low and the New Zealand dollar is strong might mean that although you spend more getting there, your dollar will go further.'

Brent Thomas, of House of Travel, said the United States looked appealing again as the New Zealand dollar regained some of its strength. 'There are plenty of places you can eat well for pretty low prices,' he said.

He said another way for people to manage on-the-ground costs was to buy a meal package for their resorts. 'That way you know what you're spending before you get there. It's the unknown that people don't like, when you come home and your credit card is more than you anticipated.'

Flights

The cost of air travel has fallen significantly over the past year as competition has increased and the cost of fuel has fallen.

South American destinations and Hawaii are now much more affordable for Kiwi travellers than they ever were before.

But waiting until the last minute probably will not give you the best deal. Keep an eye out for appealing specials and, if you are planning a European holiday, look out for earlybird rates later this year for next year's travel. 

Many travellers now avoid flying out of London because of the taxes involved. Structure your trip so you fly home from a different European port.

Costs before you leave New Zealand

Thomas said a lot of people did not consider the hidden costs of travelling.

'The airfare is only one component of a total package of what people spend. There is parking at this end, transport to the airport. If you're flying to Australia your airfare one way might be $99 to $159 – you could spend that in a week parking at the airport. What are you going to do for lunch if you are going with a low-cost carrier? You need to add that into the equation.'

Shopping around can get you a better deal on long-term parking. Some further from Auckland Airport, with a shuttle service, offer a space for as little as $6 a day while parking closer can cost at least twice that.

A flight with a stop-over usually has added costs because time in another airport often means stopping for a snack or some shopping.

When should you change your currency?

McCullough said another mistake travellers made was to forget about the impact of currency movements.

'We know that most of our customers book their flights months in advance but wait until the day they travel to purchase their foreign currency, but this can cost in the long run. Exchange rates can see a lot of movement so it's a good idea for travellers to monitor the market and purchase in advance when the exchange rate is in their favour.'

'If you look at the Australian dollar for instance, in the last two months we've seen it move around 0.04c in the dollar, while that doesn't seem a lot, when you're looking at accommodation, airport transfers, and one meal out daily for two people costing $1370 for five days that works out as a difference of approximately $55.'

Predicting the future movement of the dollar is notoriously difficult. If you start to watch it a few months before you go, you can pick a time when it is at a level you are comfortable with, and change then – crossing your fingers it doesn't improve.