Strong Aussie $ = Bad???

[bazzaw]

"For travellers enticed by a cheap trip to the US, Ferrari warns the savings may not be what they once were. "A lot of Aussies have headed to the States on the back of the strong dollar ... this strong demand has actually pushed up the price of airfares from about $1000 last year to about $1475 this year.""

 

http://www.smh.com.au/travel/traveller-tips/look-closely-at-all-sides-of-the-coin-20110520-1ew63.html

 

Looks like there are "swings and roundabouts" to consider when thinking about the cost of cruising(and flying), in relation to the currently strong Aussie dollar. But the secret lies in trying to book and pay for things in currencies other than the Aussie $.

 

 

Barry

[Kinkacruiser]

Quite right, Bazzaw. Fuel prices would have influenced the increase as well. Let's hope it doesn't push up cruise prices up too much.

[Kiwi Kruzer]

Swings and Roundabouts ..Barry?

 

Its also called cycles.

 

One thing we have learned in life....

 

Whenever someones doing well,

every one else wants to jump on the wagon,

 

but unfortunately ,

 

too many jump on...

 

and the wheels fall off.:eek:

 

 

[bazzaw]

Hi David

 

nah - you are talking about cycles and bubbles !! :) Still relevant - but I am meaning "swings and roundabouts" as in "what you pick up on the swings, you lose on the roundabout!!" :)

 

 

Barry

[Itachi]

I am quite happy with the high dollar, it offsets what would otherwise be higher pump prices ( we are getting ripped off, but let's save this argument for another time and place). All of my shopping has been great, parcel forwarding services are all around the us now so organize delivery to them and they on forward. Also, you can get a 360 account with GE (don't quote ne here, a frend uses it) to buy phones, gadgets, everything except for groceries and clothes).

 

Yeah it probably isn't good for domestic retailers but they are crying foul, but ultimately it will ensure they are more competitive and look at other options hopefully.

 

Re travel, hopefully it won't have too much impact on cruise fares.

[Debsta]

Actually, I think the airfares have risen due to our economy being stronger (not necessarily related to USD) compared to this time last year. More people travelling now and a little more optimistic = airlines to push up the airfares to recover losses from the GFC. Hey with any luck I''ll get a dividend from Qantas again in about 10 years lololololo

 

My 2 cents

[thied]

but fuel prices should be lower.

[The_Big_M]

Not when oil costs have increased as much as they have - i.e. more than the AUD/USD.

 

That's why oil surcharges have also risen, though there's a bit of profiteering from the airlines going on there.

[moyaroo]

Those airline surcharges are incredible aren't they? I have a trip for next fall, the ticket is technically free but the fuel surcharges are going to smack me.

 

Thankfully the cruise lines so far have been just threatening to put on the surcharges- They are so afraid that the next one won't go along that things are going well for us. Let us all hope they stay afraid of lost revenue.

[bazzaw]

This is why I referred to "swings and roundabouts" - our Dollar gains strength so it is cheaper to holiday in the US, demand for flights to the US goes up so the flights become more expensive -- :p.

 

As for fuel prices- although our prices are determined by financial considerations (such as the price of a barrel of oil and the relative value of our $), it is also very largely determined by supply and demand. Ever wondered why the price of diesel (a fuel which is less costly to manufacture) is sometimes higher than petrol here in Oz - and sometimes cheaper ( HINT - it has to do with supply lines).

 

 

Barry