Will the crisis affect your travel.

[drron]

Certainly I am strongly reconsidering my plans for 2009.We have a DONE4 planned for April which I think we will still do.Was planning another for August but I think that is now unlikely.
The super has taken a bashing but fortunately I deliberately built it up to twice the amount I considered necessary.However more work will equal more cash and more future opportunity for investment.
The big drawback is going to be loss of status.I will try for SPG plat hopefully with some double stay/nights promotion.I am guaranteed hhonors gold for 22 years so thats OK.I guess I am going to have to miss EXP for 2010 though-and I was getting so used to F lounges!Maybe AA may let me buy it for 1 year-though I doubt I will be close.

 

[thegurio]

For me it depends on how much it affects my customers I guess. If they continue to spend with me then i will continue to spend as I am. I certainly am still planning a 6 week adventure back to Europe and the US late next year. If things change too much then that will be wiped and plans for a cruise leaving Sydney will be put into place. Above all, my holidays are important to me and so I wont let a lot get in the way of that.

 

[wandering_fred]

With the A$ down significantly, it means that exAustralia tickets are more attractive than the previously cheaper locations, though SIN/BKK still look like offering better fare classes for about the same (or a bit less) $

Certainly the OW LONEx fares are a great deal more attractive exAustralia.
Even allowing for the hyper inflated upgrades to Y+

YMMV

Fred

 

[sr81]

You may need to explain this logic for me. If the AUD is down then fares purchased in AUD will still be the same. If you purchased an AUD fare with USD then your saving would be significant. 1AUD is still 1AUD. I can't see fares bought with AUD being any cheaper.

Back on topic: I am travelling to Canada and Europe for some work stuff with personal travel thrown in. I purcahsed me DONE3 in USD when the rate was 88cents so the large purchase cost was pretty fair, the bookings I have for hotels in NYC, HEL, LON etc. are now looking much more expensive. I will still be travelling though I really could use the AUD being at least 70cents.

I estimate that the AUD will cost me an extra AUD1000-1500 over four weeks of travel.

When I first went to the US I remeber getting around 57cents and 35pence. Those were the bad old days just following the tech bust and the markets are in far worse state than back then.

 

[NYCguy]

Many of my firms' customers are immune to market shenanigans. It's at times like these I'm glad I escaped from investment banking! The company gets advice from more than one consultancy firm, and at the moment that advice is conflicting. A wait-and-see attitude is prevailing, stiff-upper-lip as the English would say, and avoid discounting. That cheapens the image of the products, and looks desperate. Like UA releasing all those Z fares for trans-pacs during the busy holiday travel period .

On a personal level, there are some excellent companies whose stock is a total bargain during these times of uncertainty, and it's a great opportunity to buy up now and clean up later!

It's really just like your adviser/accountant tells you - diversify!

This too shall pass...

 

[JohnK]

The superannuation crisis is not going to affect me for at least another 15 years when I will be 59 and finally have access to my superannuation. That being said there is not that much in my superannuation fund, and even less after the latest crisis, and I was not planning on putting any extra money in superannuation other that the compulsory 9%. I have personal investments which are appreciating much better than superannuation and also provide a better return annually as there are no greedy fund managers to feed.

As for travel that will solely depend on whether I am employed. Still planning my usual 3 trips a year to Thailand but the free falling A$ will add another at least $1,000 to each trip. Not that big a loss and easily covered by saving a little extra elsewhere....

 

[Mal]

As a (mainly) leisure traveller, unless the $A improves, I'll either cut some trips, reduce their length, or find other ways to reduce their cost.

The 30% odd drop in the $A-$US rate will probably cost me around $1000-$1500 extra for my trip in Nov. Quite annoying really - but it's not going to send me bankrupt!

I think worse than the $US drop is the fact that just about all $A-> currencies are affected by similar percentages. Currently trying to work out what I want to do for Christmas - and most of my usual haunts aren't looking good from a currency perspective (let alone airfares!).

I actually see the $A improving in the short term. But as for how much, how soon etc - my Crystal Ball is in for repairs...

I'm still (relatively) young, so not too worried about my super. However, did move it from "High Risk/Balanced" to "cash" soon after things started to crumble a few months ago. Only a few weeks ago looked at the general consensus and thought things were getting back on track so moved it back to "High Risk/Balanced". Doh! Have lost quite a few $$$$ in funny money as a result. Plenty of years for it to rebuild, and my current contributions are getting a very cheap buy price.

 

[Evan]

Well my trip planned for end of this / begining of next year will be a lot lot more expensive ! it was rather a luxury trip then again what i loose on currency i may make up with hotels in NYC etc potentially becomming cheaper due to less demand ?

It is possible i may even travel more for work since if its not available in AU i wil simply travel to where it is.

Could be an interesting year with no work lined up for 2009 yet but thats not a concern yet.

E

 

[Keith009]

With the A$ taking such a dive my overseas shopping is about to get more expensive. But thankfully i do have savings and income in USD which should come in handy next time if the A$ doesn't improve.
I'd now have to reevaluate where I commence my DONEs as previously cheap locations (NRT for eg) are not looking all that cheap now.

 

[Evan]

I'd now have to reevaluate where I commence my DONEs as previously cheap locations (NRT for eg) are not looking all that cheap now.

If we have some interesting moves in any recover / further fall then will be interesting to see what ends up cheap. I done have a plan to purchase another xONEx until 2nd half 09 unless for some reason the ZAR is good value again.

E

 

[file51]

With an upcoming trip leaving Xmas day SYD-HNL-SEA-SFO-LAX-LAS-LAX-HNL-SYD I had to make one compromise to keep the minister of war and finance happy (since she isnt coming along )

The *class fares SYD-HNL-SYD were already paid for, along with whY from HNL-SEA then F class SEA-SFO-LAX-LAS-LAX so that just left the LAX-HNL sector.

So instead of paying between US$400-800 for the one-way trip I have used 25,000 QFF points... gets me to where I need to get to, and keeps the other half happy.

Have 2-3 trips planned for 2009 to the U.S. and similar tactics may be used so it wont cost anymore, just some points will be burnt.

All trips are to visit friends or for special events (weddings etc) so cost whilst wanting to keep them down really wont play a huge factor in the long run.

IMHO I feel the AUD will be back in the mid 70c range to low 80c range by year end anyway, not quite the 98c of a few months back, but better than where we were many years ago when 55c-65c was the norm

 

[Arthur Hodgson]

So instead of paying between US$400-800 for the one-way trip I have used 25,000 QFF points... gets me to where I need to get to, and keeps the other half happy.

I have done this also, but decided to fly SFO-HNL as it is only 18,000 points vs 25,000 for LAX-HNL (quite a big difference, I thought).

As all of my travel comes directly out of my own pocket (I have not worked for 10 years - my decision), I am quite sensitive to massive currency swings, such as we have just witnessed.

As a result I have cancelled a trip to Europe (France mainly) in November, due to the stupid valuation of the euro, and replaced it with a trip to the UK, where I have some investments in GBP.

Other than that, I am very lucky that I had paid several weeks ago for 4 overseas trips next year (mainly business class to Asia, the US and UK), so I only have accommodation and ancillary expenses to pay for in local currency (and I already have ample funds in USD and GBP).

If things don't improve, I will probably not make any further paid bookings for next year, but as I am already lifetime * gold, it isn't really a huge deal.

As for my investments, I had less than 5% invested on the stock market (I could see problems on the horizon), so although I have lost quite a few thousand dollars on that, it has been offset by substantial currency gains from my funds in USD and GBP.

So next year promises to be interesting, but I don't see the Pacific Peso recovering all that much (it's too much of a hedge funds' plaything). I've seen it all before, unfortunately.

 

[JohnK]

IMHO I feel the AUD will be back in the mid 70c range to low 80c range by year end anyway, not quite the 98c of a few months back, but better than where we were many years ago when 55c-65c was the norm

It would be a great result if the A$ bounced back to settle at US$0.75-0.85. My fear is that the A$ will drop below US$0.60 and possibly even further. Tragic indeed....

 

[dot]

For me with all of my travel being for work, if my client feels the pinch and cancels a project, then I won't be travelling. I was supposed to be flying SIN-MNL today, but on Friday afternoon we got word that the project was put on hold pending approvals for the project by their board. Board approval was supposed to come through last week; rumour mill has it that the board want to see what will happen with the financial crisis first before approving the project.

If the rumour is true, then my travel has already been effected by the financial crisis.

Dot

 

[straitman]

It would be a great result if the A$ bounced back to settle at US$0.75-0.85. My fear is that the A$ will drop below US$0.60 and possibly even further. Tragic indeed....

JohnK,

Agreed, though maybe I'm more of an optimist as I think that $US0.75 -0.85 will be it and have little fear of it going to US$0.60.

Fortunately my Super is tied up in a defined benefit fund.

Maybe it's almost a good time to throw it into the market.

Re travel I'll take it as it comes with trips on the drawing boards for next year though sadly I think I will start out by dropping to SG. :evil:

 

[file51]

It would be a great result if the A$ bounced back to settle at US$0.75-0.85. My fear is that the A$ will drop below US$0.60 and possibly even further. Tragic indeed....

I doubt it will drop and stay below 60c, and as was shown during the week when it dropped to 64c due to U.S. & UK stock market activities, as soon as the ASX started firing it was only a few hours and the currency was back at .70c.

It may take a few months to climb back up, but I think it will, and doubt it will go lower than 60c and stay there.

But, this is purely speculation and gut feeling, and nothing would surprise me after what has occurred over the past 2 weeks.

 

[Mal]

If the rumour is true, then my travel has already been effected by the financial crisis.

I've been planning a move to the UK for a while now, with a 1st/2nd quarter next year arrival into the UK.

At the moment this is also on hold - I need to grasp the complexities of the UK situation and ensure that it will be the right move. Moving over when the $ is so low isn't great, nor is finding myself unable to secure work that I want when I get over there due to a weakening economy and massive layoffs in the field where I will be working...

 

[JohnK]

Agreed, though maybe I'm more of an optimist as I think that $US0.75 -0.85 will be it and have little fear of it going to US$0.60.

I am a pessimist and my comments can be taken with a grain of salt.

Of course my comments are pure speculation and are about as accurate as all the experts that were saying we will be at parity with the US$ by year end. We have now dropped below parity with the S$ and still no expert has offered any useful information to explain why the A$ is free falling. All pure speculation which has me worried....

 

[Dave Noble]

It would be a great result if the A$ bounced back to settle at US$0.75-0.85. My fear is that the A$ will drop below US$0.60 and possibly even further. Tragic indeed....

For companies trying to export, it isnt tragic but could assist sales

Dave

 

[JohnK]

For companies trying to export, it isnt tragic but could assist sales

True but exports do not help people travelling overseas.

But I also think that with the global economic crisis the things that Australia exports the most will not be on the top priority import list for other countries. Maybe increase in exports will prove me wrong in time....