Why is holidaying in Australia so expensive?

[JohnK]

In another thread someone mentioned not to go Thailand but to holiday in Australia instead. Believe it or not it can be cheaper or more cost effective to holiday overseas most of the time.

I am stuck in Brisbane on the Anzac Day holiday weekend and I thought why not head down to Melbourne and play 3 games of golf. I have also looked at Cairns and it is just as expensive. And no, the cost would still be the same for any 3 day weekend.

Airfares QF = $365
Accommodation = $342 (3 nights including 2 nights @$99/night with HPC)
Car hire = $200 ($145 car hire + $55 fuel)
Golf = $225 (3 games including cart)
Food and beverage = $150
Cost to/from BNE airport = $26

Total $1,308 for 3 days/nights in Melbourne. :shock:

Or add a day of annual leave either side and head off to Thailand for the long weekend.

Airfares TG = $1,101 (Depart midnight Thursday and return midday Tuesday)
Taxis to/from Bangkok = $80
Accommodation = $75 (Friday night - Sunday night)
Golf = $300 (3 games including cart and caddy fees
Food and beverage = $140
Cost to/from BNE airport = $26

Total $1,722 for 4 days/3 nights in Thailand.

I know which I would choose....

 

[DrA]

Higher salary costs. Higher costs for consumables. Surely you know all that though

Still, doesn't change the fact that it's cheaper to holiday overseas. I have to wonder exactly how much the Australian tourism industry is suffering from this, especially with more people realising that you can now get a flight+hotel package deal to SE Asia for under a grand.

 

[Mal]

I have to wonder exactly how much the Australian tourism industry is suffering from this, especially with more people realising that you can now get a flight+hotel package deal to SE Asia for under a grand.

Most people in Australia won't head overseas for just a weekend (although of course I do!), so the Australian captive market does get a lot of "weekends away" type of traffic. Also, families often still see the value of a week somewhere (driving there) and hiring a unit/beach house etc as airfares start getting expensive for overseas once you have 4 people in the family etc.

I was actually going to cost up something similar for that other thread about how expensive it is to travel in Australia. Definitely as a single it is expensive, but that's a common trait. Once you start adding more people it can become more economical to stay in Australia.

 

[DrA]

Most people in Australia won't head overseas for just a weekend (although of course I do!), so the Australian captive market does get a lot of "weekends away" type of traffic. Also, families often still see the value of a week somewhere (driving there) and hiring a unit/beach house etc as airfares start getting expensive for overseas once you have 4 people in the family etc.

I was actually going to cost up something similar for that other thread about how expensive it is to travel in Australia. Definitely as a single it is expensive, but that's a common trait. Once you start adding more people it can become more economical to stay in Australia.

True. But I have still noticed an increasing trend among people I'm friends with and work with, that where people used to holiday locally (within Aus), they're now doing cheap trips to SE Asia instead. Business travellers and those belonging to airline loyalty programs will still travel on full-service airlines (whatever that means these days). But with all the LCC's these days, holiday travellers now the the opportunity to get some "culture" and take off for a long weekend for not that much more than the cost of a domestic trip. Obviously if you throw kids into the equation it's a different story, but for singles and couples, who would (I think) have more discretionary spending power, the cheap overseas trip is now more of a reality than a dream.

I see reports on No News constantly about the decline in domestic tourism. And yes, ok, not the most reliable source of information. But it makes me wonder what the real cause of the decline is. Are people simply not travelling at all? Or are they heading overseas instead due to the perceived rip-off involved in a domestic trip?

 

[one9]

In another thread someone mentioned not to go Thailand but to holiday in Australia instead. Believe it or not it can be cheaper or more cost effective to holiday overseas most of the time.

I am stuck in Brisbane on the Anzac Day holiday weekend and I thought why not head down to Melbourne and play 3 games of golf. I have also looked at Cairns and it is just as expensive. And no, the cost would still be the same for any 3 day weekend.

Airfares QF = $365
Accommodation = $342 (3 nights including 2 nights @$99/night with HPC)
Car hire = $200 ($145 car hire + $55 fuel)
Golf = $225 (3 games including cart)
Food and beverage = $150
Cost to/from BNE airport = $26

Total $1,308 for 3 days/nights in Melbourne. :shock:

Or add a day of annual leave either side and head off to Thailand for the long weekend.

Airfares TG = $1,101 (Depart midnight Thursday and return midday Tuesday)
Taxis to/from Bangkok = $80
Accommodation = $75 (Friday night - Sunday night)
Golf = $300 (3 games including cart and caddy fees
Food and beverage = $140
Cost to/from BNE airport = $26

Total $1,722 for 4 days/3 nights in Thailand.

I know which I would choose....

The Australian dollar exchange rate is a major factor in the price comparison. The rate is relatively high at the momment. If we had an exchange rate around $0.50 like we had a few years ago, it would be a different story.

 

[amelia_22]

I am leaving tomorrow for Fiji (yay!), and am staying two weeks (I hear that's quite a decent stay for Fiji). Our flights (cheap!) ex ADL were $420 return pp. We are flying via BNE and when i looked the other day, I was certainly finding return flights to BNE on its own for around that or more. for TWO WEEKS in Fiji, island hopping, staying in nice places, tours and ferries inc. it is setting us back $1700 pp. I originally wanted to head to Broome but flights were $1200+. I have family who say,"why do you keep going o/s, you need to see your own backyard!" Here is their answer!!!

I too would like to know how Australia' tourism industry is faring in light of this.

 

[dajop]

Well I don't know if it's the death of the Australian tourism industry quite yet! What is informative is to take a look at a airline timetables today, compared to around 2000, and there is a huge increase in capacity, so some people must be travelling within Australia compared to 10 years ago. Take for example MEL-CNS, then 2 flights each a week for AN & QF (4 per week), now 1 a day for each of QF, JQ & DJ (21 per week). Then there's the stimulus that Tiger and Jetstar have bought to the equation.

THere also things to do to make holidaying cheaper, eg stay in motels instead of hotels, fly in Tiger and Jetstar instead of QF (sacrilege I know, but savings can be significant), for long weekends fly out Sat morning instead of Friday night (one less nights accom, and miss the Friday night corporate higher fare travel peaks), take out travel insurance rather than pay excess reduction on car hire. Use local supermarkets to get food rather than cafes, takeaways and restaurants. A lot of it common sense, but people often throw that out the window when travelling and no wonder it costs a bomb.

 

[Keith009]

Actually, I have found that most things in Australia are way more expensive than say the UK or the US. Drinks, cars, clothes, shoes, bags, electronic goods etc etc...

 

[zig]

I originally wanted to head to Broome but

Classic example. I love Broome - one of my favourite places in Australia, but everytime I price the cost of a holiday there and consider adding on a tour of the Pilbara etc I end up heading o/s again. I don't mind paying a bit of a premium considering the remoteness of the location, but the prices are extreme.

 

[auriga]

Cheapest to stay at home!:mrgreen:

 

[whoistheg]

+1 on this

My wife and i will go OS a lot for a 4/5/long weekends take Friday and Monday off and fly out Thur night.

Often 5* hotels are cheaper over there that say a night a Crown !!

It works out good when there is a public holiday as well.

We try to do this at least once every 2 months.

Singapore/KL/coughet/NZ/Fiji/Bankok

I just wished there were cheaper flights to Japan.. I know Deathstar
have semi decent one from Cairns but getting there from Melb is more
expensive than the international trip.

We like it and its a nice recharge to get away

If we lived in UK im sure we would never be there on weekends.
Trips to NY/France/Egypt/Africa.

Its a shame we live so far away

 

[lovetravellingoz]

In another thread someone mentioned not to go Thailand but to holiday in Australia instead. Believe it or not it can be cheaper or more cost effective to holiday overseas most of the time.

.

Given the average wage in Australia vs the average wage in Thailand, why is it surprising?

I suspect that you would not be that pleased, or willing, to be paid at a Thai wage.

Low wages for Thais means that westerners get to exploit it.

Not having a go...as I am a regular to Asia as well. But is is pretty clear why such countries are much cheaper.
Vist Singapore for example where the locals are paid much more similarly to Auastrlia and bingo; hotels, food and taxis are all way up when compared to Thailand.

 

[lovetravellingoz]

True. But I have still noticed an increasing trend among people I'm friends with and work with, that where people used to holiday locally (within Aus), they're now doing cheap trips to SE Asia instead. ?

In recent years international flight costs have dropped dramatically for the budget traveller.

In part due to the GFC, but also very much due to the low cost airlines. However even the major airlines have become leaner and hence cheaper.

JetStar, VirginBlue, AirAsia etc all mean that overseas holidays do not have large airfare barrier now.
So the "average Joe" can now travel internationally if they choose to.

Having reduced the air comopent then in the poorer Asian Counties like Thailand and Bali the cheaper hotel/ food combination can soon exceed the airfare cost.

In the more expensive countries the hotel/food savings may not be there,but the "premium" to do it now is not so premium.

 

[sweens]

Actually, I have found that most things in Australia are way more expensive than say the UK or the US. Drinks, cars, clothes, shoes, bags, electronic goods etc etc...

Agree…last November I did a trip to the U.S and London and found both places cheaper.

The U.S was cheaper for virtually everything.
Some examples are:

Retail price in shops.

Canon SX200 IS camera. U.S.$290.00 USD… Aus $590 AUD… Duty Free SYD $540…Duty Free LHR £ 210
6 pack Heineken 330 mil U.S. $6.99 USD Aus $14.99 both local liquor store
Starbucks Tall Latte $3.00 USD $4.50 AUD £2.10 UK

It’s fair to say that the current exchange rate affects this but you also have to ask about margins that local agents must make especially in the case of a camera that is made in Japan!

 

[dajop]

affects this but you also have to ask about margins that local agents must make especially in the case of a camera that is made in Japan!

Obvious, but
Australia: Low volume, high margins.
US: High volume, low(er) margins.

My favourite example some branded underwear, made in Thailand. USA : 3 pack for $15 AUD. AUS: 3 pack for $60 AUD....

 

[Thom]

I'm in regional WA so come holiday time it's either indo/Asia or head east. We have found as a family of 4 it's overall better value to continue on to Hawaii.

 

[Keith009]

Obvious, but
Australia: Low volume, high margins.
US: High volume, low(er) margins.

My favourite example some branded underwear, made in Thailand. USA : 3 pack for $15 AUD. AUS: 3 pack for $60 AUD....

Designer clothes generally much cheaper overseas. Some of the differences are jaw dropping.

 

[ChrisBNE]

I'm in regional WA so come holiday time it's either indo/Asia or head east. We have found as a family of 4 it's overall better value to continue on to Hawaii.

We travel to Waikiki every 2 years, buy all our clothes there. The difference in price for the clothing, covers the cost of the accomodation/meals, compared with what we would spend here in Australia at outlets.

I would say this would be even more significant if we travelled to Asia, but we prefer HNL.

 

[JohnK]

The Australian dollar exchange rate is a major factor in the price comparison. The rate is relatively high at the momment. If we had an exchange rate around $0.50 like we had a few years ago, it would be a different story.

Yes I agree that the strength of our dollar may affect the price of the overseas holiday but that depends on where you are going. If you go to the USA then sure you will pay close to double for those holiday expenses yet if you go to Asia or Europe you may pay 25% more when the dollar is down.

Purchasing airfares for overseas travel from Australia are not really affected by the price of the dollar. I normally spend ~AUD2,000 on a 10-12 trip to Thailand so when the dollar was down this increased to ~AUD2,500 for the 10-12 day trip. Not a big difference in the overall cost of the trip.

Perhaps I used the wrong example but does not matter how you look at it AUD1,300 for a 3 day trip to Melbourne is ridiculous, probably outrageous. Not my fault our wages are high and the wages in Thailand are lower. I am not exploiting anyone and I am paying a fair price. I stay in a hotel where I pay AUD25/night and it is more than adequate for my needs. I can get an Australian rump or sirloin for ~AUD10 yet I pay ~AUD30 or more for the privilege in Australia. Golf is a little more expensive in Thailand but the courses and the experience is much better.

Overall I find better value in overseas holidays....

 

[munitalP]

What has been missed is the greed factor - Australian businesses in the tourism industry from tours to hotels and everything else in between are greedy.

If the whole tourism industry stopped being so greedy, if Joe public stopped paying the ridiculous prices, the costs would eventually fall as the operators would be forced to lower costs or accept bankruptcy!

It doesn't help either when a 3m x 3m brick room in Dampier, Karratha, McKay, Bowen or any other town within driving distance from a resource boom area gets away with charging $285 a night - this also hurts the mum and dad tourists. Sadly, flights in and out of some of Australias beauty areas are over the top because of the same reasons - McKay, the nearest full strength airport to the Bowen Basin, Karratha or Port Hedland, the nearest airports for the Pilbra, the knock on being increased fares...

I for one wont holiday in Australia.

A simple and bold statement aimed at the high cost of Australian holidays vs travelling OS.

Mr!