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FOR THOSE of you who like to travel last minute and still want to take a vacation abroad this year, the price of airfare and hotels during peak season can leave your wallet thin. However, there is another way to make your vacation budget more efficient: choosing a destination with a cheaper exchange rate.
According to Elian Ciptono, Head of SEA Expansion and Country Manager of Wise Indonesia, one important thing that is often forgotten when planning a vacation abroad is the impact of exchange rate fluctuations on your overall budget.
“Small differences in exchange rates can make your expenses balloon, especially if you are making large purchases. Well, to help you save more at the end of this year, Wise has analyzed the average exchange rate trend over the past year to see if the rupiah has strengthened against various currencies, especially in the same period last year, he said.
He explained, from the results of the analysis, Wise recommends the following destinations, complete with details of exchange rates and average cost of living, including: (1). Vietnam, the exchange rate of 1 Vietnamese Dong is equivalent to IDR0.62. You can budget about VND150,000 (IDR31,000) per day for eating in restaurants and about VND16,000 (IDR10,000) for a round trip using public transportation, comparable to Indonesia.
“In Vietnam, you can taste typical cuisine such as Pho and Banh Mi, as well as enjoy the beauty of nature and culture, from the UNESCO World Heritage Site of Ha Long Bay to the ancient city of Hoi An and metropolises such as Ho Chi Minh City,” he said.
(2). South Korea, in the past year, the average value of the rupiah has strengthened against the won (KRW), where currently 1KRW = IDR11.3. Although the standard cost of living in this K-pop country is higher than in Indonesia, the weakening won makes vacation costs more affordable.
“You can budget for food costs of 30,000KRW (Rp339,000) per day and public transportation costs of 3,000KRW (Rp34,000) for a round trip. With the weakening exchange rate of the won against the rupiah, you can also buy more K-pop merchandise and K-beauty products while enjoying the winter,” Elian Ciptono noted.
Korea by exploring the snow in Bukhansan National Park or skiing in the country’s mountain resorts.
(3). Japan, remains a popular destination among Indonesian tourists, especially with the weakening of the yen in the past year (1 JPY = IDR102). Although the cost of living is higher, a lower exchange rate can reduce the cost burden. You can budget about JPY3,000 (IDR 306,000) per day for food and about JPY440 (IDR44,000) for a round trip using public transportation.
“You can also explore Japan’s diverse shopping areas, cultural landmarks such as the Fushimi Inari Shrine in Kyoto, and the metropolitan atmosphere of Tokyo,” he affirmed.
(4). Philippines, The Philippine peso has remained stable against the rupiah since last year (1PHP=IDR270) at the time of writing). This makes the cost of living in the Philippines comparable to Indonesia. You can expect to spend around PHP630 (IDR170,100) per day on food and around PHP30 (IDR8,000) for a round trip.
“The Philippines offers stunning natural scenery such as the beaches of El Nido and Boracay, as well as historical sites such as Intramuros in Manila, making it a must-visit destination this holiday season,” Elian Ciptono, noted.
Well, here are some tips to make your budget more efficient when vacationing abroad: (1). Take advantage of regional transportation tickets for tourists. For those of you who like to vacation by traveling from city to city in one country, you can take advantage of the Korea Rail Pass, which is specially designed for tourists. This ticket allows you to travel by train to as many cities as possible within a certain period of time.
While in Vietnam, you can purchase an Open Bus Ticket, which offers more flexibility and cost savings while visiting cities along the designated bus route.
(2). If you have friends or family living in the destination country, staying with them can significantly reduce costs. You can also consider sending money to their local bank account through a platform like Wise, which offers low-cost international transfers and competitive exchange rates.
Your family or friends can then withdraw money from a local bank or ATM to avoid high foreign transaction fees and expensive exchange rates. They can recommend wallet-friendly places to eat and travel.
3). Take advantage of promotions and discounts on platforms like Traveloka, Klook, Trazy and local travel sites. Platforms such as Klook (Asia), Trazy (Korea), and Traveloka often offer various promos and discounts for attraction tickets, tours, and transportation. The ticket prices offered are often cheaper than buying tickets directly at the location.
(4). If you haven’t signed up for a loyalty program, now is the time to do so. Many airlines, hotels, and even some restaurants offer loyalty programs that give you points for every purchase, which can be redeemed for discounts or upgrades.
Loyalty program members often receive perks such as free Wi-Fi, late checkout, complimentary food and beverages, and even hotel room or seat upgrades at no additional cost. Collect your loyalty points to reduce your air and hotel costs, especially during peak seasons.
Methodology
Wise analyzes the average exchange rate trend (based on Wise data) over the past year to assess whether the IDR exchange rate has strengthened against the currency of the destination country, especially compared to the same period the previous year. The average cost of living information is taken from Numbeo.com.
Wise is a global technology company that develops the best way to move money around the world. Corporations and banks have also adopted Wise’s technology, a new infrastructure for cross-border payments.
One of the fastest growing companies, Wise was founded in 2011 and is listed on the London Stock Exchange under the ticker WISE. In fiscal year 2024, Wise supported approximately 12.8 million people and businesses, processed approximately £118.5 billion and helped customers save over £1.8 million. [sources/photo special]
