Australians are spending more than $6.4 billion per year on holidays, and here’s why

There comes a moment in every journey when mathematics quietly stops doing mathematics. The flights are paid for, the hotel is paid for, and the $40 cocktail is reclassified in your mind as a rounding error. and new research mannerThe Smartest Account for Your Travel Money Reveals Why.

According to its research, Australians are spending an estimated more than $6.4 billion per year while travelling, which the company calls “wake maths”, a phenomenon that causes spending to go out the window as our relationship with money changes as soon as we’re abroad.

One in two (49%) agree that holiday money doesn’t always feel like ‘real’ money (only 34% disagree) and a similar number say that when travelling, they spend in the moment and worry about it later (52%).

Tristan Dakin, ANZ Country Manager mannersays this comes from a mix of emotional decision-making and the practical challenges of spending abroad.

“It’s common for people to shop for big-ticket items before they fly and head to the hotel. But when we land, vacation mind often turns on. Foreign currency suddenly feels like monopoly money, meaningless souvenirs seem like a great idea, and after spending big to get to your destination, overpriced drinks feel like a complete error. We all need some license to enjoy ourselves, but when it comes to travel, So it’s easy to get carried away and come back with a financial holiday hangover.”

Results are visible on the way home. Nearly one in two, 47%, came back from their last trip over budget, and 87% are worried about the cost of the next trip rising.

the money that stops counting

It’s easy to overspend when it becomes difficult to track what things really cost. Nearly six in ten travelers (59%) rely on rough mental allowances when paying abroad – and 11% don’t keep track of spending at all until they get home. And if we’re honest, we always go round and tell ourselves it’s close enough. Over the course of two weeks, that becomes money you can’t get back when the statement arrives.

Then there’s the money that leaves your account without you spending it as businesses try to catch people. Nearly three-quarters of Australians (72%) have been bothered by unexpected travel fees in the past five years, with ATM withdrawal fees (30%), inflated taxi fares (23%), and tourist-trap restaurant markups (27%) being the most common.

But this is made worse by the fact that at least 90% of people are still using loans, credits and pre-paid travel cards issued by major banks when spending abroad. They are often advertised as having zero fees, but the real costs are often hidden in inflated exchange rate markups.

what the wise say to do about it

Dakin advises travelers to anticipate rather than have fun. “To be smart with your foreign money, the first step is to make sure you know exactly what you are paying for in your home currency, that the exchange rate is up to date.”

this is the case manner Creates its own product. install one intelligent account Before you go, and you can keep and convert money between different currencies, track how much you’ve spent in real time, and see it all displayed in the AUD value or local currency right from your phone. No more guessing at checkout. When you spend with the Wise Card, your money is converted at the mid-market rate, the same rate you see on Google, with a low, transparent conversion fee instead of a margin hidden in the rate.

There’s more to it than cards. Wise Travel Hub Have it do the pre-travel thinking for you – with help finding ATMs that won’t hassle you with fees, advice on paying for public transport, and tips for finding the right balance of card and cash payments at your destination. And if you’re looking for some relief at the airport but don’t want to play the points game, manner Recently partnered with DragonPass, you can get access to over 1,400 lounges worldwide through the app, usually at a lower price than you would pay at the door.

Can’t resist the temptation to buy this sapphire grape. It just means that you know what they cost when you are buying them.

Research commissioned by manner, Conducted with Octopus Research among 1,500 Australian travelers in April 2026. The $6.4 billion estimate was calculated using ABS travel data and survey findings. Fees and exchange rates are set by the designated providers and are subject to change. See wise.com/pricing for current rates.