Foreign Escape
Sydney Morning Herald
Tuesday May 31, 1988
LOOK on the bright side of Mr Keating's mini-Budget: at least the departure tax has been cutin half to $10 and the arrival tax abolished. You're ahead $15 and you haven't even left the country yet.
As the Australian dollar moves upwards, an overseas holiday has to be more attractive than staying at home wondering what's likely to happen to your superannuation payout.
All the same, overseas travel demands a keen financial eye, or your holiday could upset you more than the mini-Budget.
There are four crucial matters to take care of before you take off:
AIR FARES: UNLESS you are taking a slow boat to China (or elsewhere, for that matter) most of your trip will be by air.
Competition is keen in the air fares' market and you are better shopping around travel agents rather than dealing directly with the airlines.
Several travel agents which advertise in the Overseas Travel section of the Herald on Saturdays specialise in cut-price air fares. A few quick phone calls can sniff out the best deals.
May to July and December 11-23 are the high seasons for flights to the northern hemisphere, so if your trip begins during the next couple of months, you will be paying top dollar. During the low season (October, November, January and February) fares are about a fifth less.
The lowest return fares to Europe involve flying part of the way by an airline that does not have landing rights in Australia, such as Air Pakistan or Royal Jordanian. These are not bad airlines and indeed have good reputations for in-flight service. Some people are suspicious of them, though, because they operate extensively in the Middle East and many would-be travellers are greatly concerned about highjackings.
The risks are for the individual to weigh up, but are probably no greater than flying with the more recognised international airlines.
At present the best prices on return trips to London involve flying by British Airways to Karachi and from there to London by Air Pakistan. This will cost around $1,490.
By comparison, flying with British Airways or Qantas all the way will cost you for a normal economy return airfare bought at a travel agent about $2,350. If you book directly through the airline it will cost $2,499.
A number of special bicentennial fares to the West Coast of the US are being offered by airlines anxious to take up seats which have been occupied by American tourists on the inward journey.
International Corporate Travel is offering return trips with United Airlines and Qantas, the only two airlines to fly direct to the West Coast, for $1,239. Buying a bicentennial fare does mean you will have to pay within seven days of reservation. You are also allowed only one stopover between the outward and inward journey, instead of the usual one in each direction.
Even cheaper fares (around $1,000) are available if you travel to the West Coast by UTA or Hawaiian Airlines. These airlines only fly once a week, but offer attractive stopover packages.
For travel to Asia the cheapest flights may involve an extra stopover. For instance, some of the cheapest flights to Hong Kong are offered by Philipine Airlines, but this involves an overnight stay in Manila.
During the high season buying a round-the-world trip can be a bargain as many prices do not fluctuate with the seasons and so are comparatively cheap.
These allow you unlimited trips as long as you keep progressing in one direction around the world. These start from around $1,739 (combined Continental Airlines and Olympic Airways from Orbit Travel) up to around$2,575 for Qantas or British Airways.
The types of tickets are a good alternative to a return trip to Europe if you don't want a direct flight.
Of course, buying the cheapest air fare doesn't mean you have got the best deal. Several of the more expensive airlines offer discounts on car rental and accommodation.
Qantas offers a Connections Card which gives discounts on accommodation and some tours in Europe, Asia, New Zealand and America, with the average discount being around 20 per cent.
If you book a Sydney-London return trip through British Airways you also get a free return trip to one of several European cities. British Airways also gives discounts on accommodation in London and Continental Europe through its World's Favourite Holiday Book.
While such packages are attractive, they are not worth anything if you don't take advantage of the discounts they offer. If you are planning a short trip and have most of your accommodation arranged, it is not worth paying the higher airfare.
If you are going on a longer trip, it might be worthwhile.
TRAVEL PACKAGES: LIKE beauty, a good tour package is in the eye of the beholder. What can seem like a rushed itinerary to one person may be a leisurely stroll to another.
The success of a holiday plan depends to a large extent on the quality of your travel consultant. It is not necessary to use the same agency through which you bought your airfares. Although the Australian Federation of Travel Agents recommends that members charge a $50 consultation fee, most charge nothing so there is nothing to be lost by using more than one agent.
It is impossible to give blanket recommendations for travel agencies - many have strengths in organising trips to particular parts of the world. However, a survey published in Choice magazine in March found that the smaller, independent agencies offered the best services for tourists interested in organising their own holidays, while the larger agencies offered better deals on buying pre-packaged tours.
It is a good idea to gather quotes and brochures from a number of agencies before making a final decision. Guide books can be used to check the information given by agents. Before deciding on a tour package, make sure you know what the cancellation fees are and, if you are travelling as a family, whether there are special rates for children.
Several tour operators now sell packages which give tourists the opportunity to choose hotels and itineraries based on what they can afford.
Fly-drive holidays are extremely good value at the moment, according to travel experts.
It is cheaper, they say, to arrange a car hire before leaving Australia.
Make sure that a collision damage waiver is included in your rental fee, otherwise you could be left with a large repair bill in the event of an accident. Most European nations also apply a consumption tax of up to 33 per cent on rental arrangements, so make sure this is included in any fees quoted
If you are planning to drive overseas you will also need to have an International Drivers' Permit, which can be bought from the NRMA for $6. You will need a passport-size photo for the licence.
Other arrangements, such as internal flights in the countries you are visiting, can be left until you arrive at your destination - US domestic airfares, for instance, are very competitive.
CURRENCY MATTERS: DECIDING which currency to carry and how to carry it is a matter of balance.
You should keep holdings of coins and notes to a minimum. They are easy to lose and many travel-insurance policies place limits on the amount of cash that can be replaced. Nevertheless, it is useful to carry a small amount of cash to pay for taxi trips, arrival tax and phone calls when you arrive at an airport.
The majority of money should be carried in recognised travellers' cheques.
If you are going to only one country you should take travellers' cheques in the currency of that country. Otherwise, keep the number of currencies bulging in your wallet or purse to a minimum - you lose out on commission every time you have to make a conversion.
In Europe strong currencies such as the Deutschmark or Swiss Francs are easily negotiable. Australian dollars are well known throughout South-East Asia, but not in the rural areas of countries such as India. Whenever you go right off the beaten track, US dollars are safest.
It is also a good idea to take at least two credit or charge cards. Both MasterCard and Visacard can be used in more than five million establishments worldwide.
American Express cards can be used in almost two million establishments, and is the better-known of all the cards in some remote parts of South-East Asia.
Bankcard can only be used in Australia and New Zealand.
One factor which should be taken into account is how your purchases are converted into Australian currency.
Diners Club and American Express convert purchases from the foreign currency straight into Australian dollars, whereas Visacard and MasterCard convert the amount into US dollars and then into Australian dollars.
This double conversion involves an extra risk of losing out on currency movements. You should also make arrangements for regular deductions from your bank account to make sure you do not exceed your credit-card limit.
TRAVEL INSURANCE: TRAVEL insurance is often neglected by travellers, but one bill from a US hospital would be enough to cure this neglect. Medical expenses in the US can be huge, and Medicare will only cover you up to the Australian scheduled fee.
Apart from medical expenses, travel insurance policies will cover you against the cancellation of your trip, loss of luggage, accidental death and personal liability. Some even offer you a daily payment if you are unfortunate enough to be involved in a hijack.
Travel insurance for a four-week overseas trip will cost between $130 and$250 for a family. There are several travel insurance policies on offer, so it is not necessary to choose the one offered by a travel agent. Check the fine print in the policy - different policies apply different excesses to claims and others place a limit on the amount that may be claimed for theft of certain goods such as videos and sound equipment.
Some policies apply an age limit, or charge higher premiums if the traveller is over 80 or 85.
Two of the better-known travel insurance plans are offered by Sun Alliance and the Australian Federation of Travel Agents. Sun Alliance offers unlimited cover for medical expenses (other plans place a limit). It also covers you against losses of cash or travellers' cheques up to a limit of $250 for an individual or $500 for a family.
AFTA offers four different grades of cover, whereas other policies normally only offer two. It also gives you access to a 24-hour worldwide hotline which can be used to arrange medical treatment, even if you have run out of money.
© 1988 Sydney Morning Herald
