Australia’s diving dollar could mean lower airfares

Australians travelling to the US will benefit.The Australian dollar is expected to drop to US65 cents by the end of March before recovering to end the year at around US70 cents, according to the Commonwealth Bank .

It’s dropped from almost US83 cents in January last year.

While that looks bad news in the short term for Australian travellers heading to the US and other northern hemisphere destinations, it is, of course, making Australia more attractive to overseas visitors. Arrivals have been rising steadily over the past couple of years.

And in that, Expedia is predicting some upside for the outward-bound. The travel booking service and keen travel trends watcher believes there could be a price war on airfares to the US in 2016.

“That is great news for Aussie travellers,” says Expedia’s Travel Expert, Kelly Cull. “A lot of airlines have recently announced increases in capacity for non-stop flights, including Qantas and American Airlines. This, combined with Asian airlines increasingly utilising international gateways, like Tokyo and Shanghai, could lead to a surplus of seats that need to be filled.”

Cull believes that will also lead to interesting package offers. “The US is a darling destination for Aussie travellers and we expect to see some great deals to the US, especially for travellers booking their hotel and flight together in a package.”

The outlook on the currency is not altogether grim, but it will still be under pressure for the foreseeable. CBA predicts US71 cents by March 2017 and US72.50 cents by the end of June 2017.

Even a little rise can make a difference though, and Cull says, “Most people look for ways to save money so they can get the most out of their holiday, and keeping an eye on currencies is smart. My other insider tips for travellers are to use a tool like Scratchpad on Expedia苏州美甲美睫培训学校419论坛, which allows travellers to monitor price movements on hotels and flights; look out for mobile-exclusive deals – apps are so easy; and also to bundle the flight and hotel together when booking – Aussies have the potential to save hundreds of dollars by doing these simple things.”

See also: Is there really a cheapest time to book a flight?

See also: The worst way to spend your frequent flyer points

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