Bad exchange rate leads to a drop in Aussies travelling to the US

Bad exchange rate leads to a drop in Aussies travelling to the US
Sofia Geraghty
By Sofia Geraghty


When the New York Times runs an article titled ‘Where to get the most bang for your buck’ aimed at frugal travellers, Australia seems an unlikely option.

But given the weak exchange rate, Australia appeared at the top of the list, in the article a fortnight ago, as an “unexpected” place to get value for money. Currently, the US dollar is worth about 1.50 Australian dollars, up 16 per cent over the past three years.

Whilst this might be good news for Americans, it’s not so good news for Aussies travelling in the opposite direction. Multiple travel agents told Travel Weekly they’ve experienced a significant drop in Australians travelling to the States.

“I used to get a lot of people going to America for holidays but now it is mostly people visiting their families,” one agent said. A decrease in how far the Aussie dollar goes in terms of hotel choices and food was one of the reasons for the drop they said.

Another agent said they had seen a sharp decrease in customers going from Perth, given the high fees, the exchange rate, and the fact Europe is closer.

Meanwhile, founder of Travel Agent Finder Anna Shannon said she’d seen a “huge decrease” in the number of leads coming through the website for the US. US inquiries were down 65 per cent in the last six months compared to the same period last year, she said.

As well as the exchange rate, hidden costs such as resort fees can also make the US an expensive location for Australians.

Resort fees are non-optional fees paid for use of the facilities such as swimming pools, Wi-Fi and gyms. The average resort fee is around US$42.41 (AU$64) a day which could add up to as much as $450 for a week’s stay.

Whilst only 6 per cent of hotels in the US charge the fee, they are popular in tourist hot spots such as New York, LA, Las Vagas and Hawaii.

It is not all bad news, however, savvy tourists and agents who do their research can get ahead of the curve by sourcing out hotels that wave the fees, booking on points, and joining hotel loyalty programs. For example, some brands such as Hilton Honors and World of Hyatt wave fees on award stays. Nerdwallet says using hotel credit cards is a great way to build up points. 

Equally, steering clear of some of the main tourist hotspots can also be a great way to experience the US more cheaply. Destinations such as the national parks, Nashville, New Orleans and San Diago can offer slightly cheaper travel options.

Featured image: IMG2GO AI art generator 

Email the Travel Weekly team at traveldesk@travelweekly.com.au

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