Australia’s unique image of being laidback and spontaneous while travelling is being challenged, with new research from HSBC revealing Aussies are more conscientious and organised when it comes to travel planning and travel finances than many might believe.
In 2017, Australians made roughly 10.5 million trips abroad - 6.9 per cent more than the previous year1. Yet despite being natural born travellers wanting to indulge in everything that an overseas destination has to offer, it would seem Aussies are more cautious than impulsive – potentially denying themselves spontaneous surprises.
HSBC’s Passport to Smarter Spending survey has revealed the safety of money and valuables is seen as a key priority among security-savvy travellers.
Nine in 10 (89%) Aussies admit to carrying additional copies of their card details or international travel assistance numbers in case of an emergency2, and four in five store their valuables in a room safe (81%)3.
More than half (56%) wear a concealed money belt to protect their holiday cards and cash4, and many confess to ‘multi-stashing’ – where they hide their treasures on different parts of their person5.
And this method of disguise for Aussie travellers could in fact be warranted, with the Australian Department of Foreign Affairs and Trade reporting one of the most common requests for consular assistance when Australians are overseas is for people who have, “either been the victims of a robbery or theft, or have lost their valuables, money or passport.”6
Cautious Aussies also would not dare travel without insurance, with over four in five (84%) revealing they wouldn’t take the risk.
The Passport to Smarter Spending survey by HSBC has uncovered almost half (49%) of Australians have been charged a transaction fee in the last 12 months while overseas7, meaning fees are now a regular – and unwelcome – item on many Aussies monthly statements.
People are going to great lengths to avoid this, with almost all respondents (94%) admitting to changing their spending habits while travelling8. Nine in 10 (91%) have withdrawn the local currency in advance and kept it on their person, in spite of the potential security risks9.
But while Aussies are aware of international transaction fees, they are also in the dark when it comes to the foreign exchange rate that will be applied when using their credit card – with almost half admitting they don’t keep track of bank exchange rates.
HSBC’s Passport to Smarter Spending survey reveals Australians are also careful with their comfort when travelling, preferring luxury hotels, safe destinations and organised tours; ideally outsourcing the organising to a professional10.
Aussies prefer hotels (81%11) over rental accommodation, favour a detailed and pre-booked itinerary (67%) over arranging things on the go (33%)12, and are even a little wary of indulging in the local cuisine, with one in four (24%) admitting to eating fast food while on holiday.
Barnaby Jenkins, Head of Transactional Banking Products at HSBC, said while Australians believe it’s important to enjoy local experiences and get fully involved in the culture of the destination they’re travelling to – the research shows they also want to do as much of the homework as possible up front.
“Australians want to immerse themselves wherever they travel, however in reality they’re much more considered and comfort-seeking, meticulously planning their activities well in advance in order to make the most of their holiday.
“They’re looking for smart ways to spend and save, but unfortunately this careful planning doesn’t extend to their finances – with many unaware of the international transaction and foreign exchange fees that could be stacking up.
“Our HSBC Everyday Global Account enables customers to pay like a local at home and overseas, with ten currencies available and no ATM and transaction fees,” said Mr. Jenkins.
HSBC’s Passport To Smarter Spending research surveyed 1,000 people to investigate Australia’s attitudes towards travel planning and finances. The second phase of this survey which investigates Australia’s habits and behaviours with spending online, will be released in early 2019. For more information please visit www.hsbc.com.au
The HSBC Everyday Global Account was launched in March 2018, and has received Canstar’s Annual Innovation Excellence Award for its features and benefits for customers.
|Top advice||2nd advice||3rd advice|
|Learn how to say hello, thank you etc. in the local language||27%||19%||46%|
|Travel off season||28%||16%||44%|
|Eat at local markets or restaurants||14%||21%||35%|
|Spend minimum of four days in any destination||15%||13%||28%|
|Ask locals for advice||10%||14%||24%|
|Catch public transport||4%||8%||12%|
|Stay in a ‘home rental’ e.g. Airbnb/Stayz/local guesthouse||3%||9%||12%|
|Miss your flight||61%||over||Lose your luggage||29%|
|Travel with someone who gives one word answers||74%||over||Travel with someone who never shuts up||26%|
|Travel with someone who has done extensive homework and research prior to the trip||54%||over||Travel with someone who goes with the flow||46%|
|Lose your phone||74%||over||Lose your wallet||26%|
|Receive an upgrade at a hotel||51%||over||Receive an upgrade on a flight||49%|
|Use a separate travel card||55%||over||Use your everyday credit card||45%|
|Have a detailed itinerary with pre-booked accommodation, transfers and excursions||67%||over||Arrange things as you go||33%|
|Get food poisoning||64%||over||Break your arm||36%|
|Get invited to a local celebration or event||59%||over||Eat at a five star restaurant||41%|
|Pay in cash||60%||over||Use payWave, Apple Pay or Google Pay as you would at home||40%|
|Spend a night out with locals||57%||over||Spend a night out with fellow travellers like you||43%|
|Go on holiday with someone you have an unrequited crush on||83%||over||Go on holiday with your boss||17%|
|Withdraw money as needed from local ATMS||66%||over||Convert large sums of money at a currency exchange||34%|
|Stay in a hotel||81%||over||Stay in an Airbnb||19%|
|Ask a local for directions or advice||55%||over||Ask Google||45%|
|Take out travel insurance||84%||over||Risk it for a biscuit||16%|
|Wander aimlessly||56%||over||Only go on guided tours||44%|
|Have great weather but crowds||62%||over||Have bad weather but no crowds||38%|
|In one week be able to visit multiple destinations||59%||over||Spend a week in just one place||41%|
For more information please visit https://www.hsbc.com.au/accounts/products/everyday-global/
HSBC Bank Australia
In Australia, the HSBC Group offers an extensive range of financial services through a network of 44 branches and offices. These services include retail and commercial banking, trade finance, treasury and financial markets, payments and cash management and securities custody. Principal HSBC Group members operating in Australia include HSBC Bank Australia Limited (ABN 48 006 434 162 AFSL/Australian Credit License 232595) and The Hong Kong and Shanghai Banking Corporation Limited (ABN 65 117 925 970 and AFSL 301737).
Issued by HSBC Bank Australia Limited ABN 48 006 434 162, AFSL No 232595. This brochure provides general advice only and doesn’t take into account your objectives, financial situation or needs. Consider the relevant Product Disclosure Statement (PDS) and Terms and Conditions before acquiring the product. A copy of the PDS and Terms and Conditions is available on hsbc.com.au, or by calling us on 1300 308 008. HSBC1374_R01_1118
1 Australian Bureau of Statistics, Overseas Arrivals and Departures, Australia, December, 2017
2 HSBC Passport To Smarter Spending Study, research conducted by Colmar Brunton for HSBC Australia, October, 2018
3 HSBC Passport To Smarter Spending Study, research conducted by Colmar Brunton for HSBC Australia, October, 2018
4 HSBC Passport To Smarter Spending Study, research conducted by Colmar Brunton for HSBC Australia, October, 2018
5 HSBC Passport To Smarter Spending Study, conducted by Colmar Brunton for HSBC Australia, October, 2018
7 HSBC Global Travel Card Study, research conducted by YouGov Galaxy for HSBC Australia, February, 2018
8 HSBC Global Travel Card Study, research conducted by YouGov Galaxy for HSBC Australia, February, 2018
9 HSBC Global Travel Card Study, research conducted by YouGov Galaxy for HSBC Australia, February, 2018
10 Roy Morgan Holiday Tracking Survey, January 2017 - December 2017
11 HSBC Passport To Smarter Spending Study, research conducted by Colmar Brunton for HSBC Australia, October, 2018
12 HSBC Passport To Smarter Spending Study, research conducted by Colmar Brunton for HSBC Australia, October, 2018