European holidays now cost $16,000 instead of $18,160 for Australian families
The dollar has surged 11.7 per cent against the Euro in a year, making European holidays significantly cheaper for Australians.
A €10,000 family holiday that cost $18,160 a year ago now costs just $16,000. The Australian dollar has strengthened 11.7 per cent versus the Euro and around 8 per cent against the British pound over the past 12 months.
The rise is driven mainly by the interest-rate gap: the Reserve Bank sits at 4.65 per cent while the European Central Bank is at 2.5 per cent. A stronger currency makes imports cheaper for Australia too, but higher rates slow the economy and can push up unemployment.
An economist warns the advantage may not last much longer, as the ECB and UK are just starting to lift rates while Australia may be near its peak cycle. For travellers, booking sooner rather than later is wise.
- $2,160
- Savings on €10k holiday
- 11.7 per cent
- AUD gain vs Euro in one year
- 4.65 per cent
- RBA cash rate
- 2.5 per cent
- ECB benchmark rate
Why it mattersAustralians planning European holidays can save thousands right now, but the currency advantage depends on interest-rate differentials that may narrow soon.
AustraliaAustralian holidaymakers heading to Europe get better value this year, but the savings window may close if interest-rate trends reverse.
✓ Claims checked against the source and corrected before publish. checked 5 h ago
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