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Economics

We’re going to Ibiza > Whoa, because it’s cheaper

So I’m in the process of finalising my accommodation for my European trip for later this year (#euro12) and let me tell you, I was astounded at how much accommodation and flights cost… in a good way.

We’ll be travelling all around the Mediterranean, but let’s take our flight from Barcelona to Mykonos for example. It’s a 2,000 kilometre trip, roughly the same as travelling from Sydney to Alice Springs. Granted we’re flying the low-cost airline Vueling (I’d never heard of it, but my mate caught me doing a Wiki and Google News search on the company to check its safety record #safetraveller) and the three hour flight will cost us 100Euro each. Once you convert that, it’s around $125.

$125!!! To fly from one country to another! One amazing country to another. You can barely fly a low cost carrier from Sydney to Melbourne for that price.

The accommodation in Mykonos? For a four star, two bedroom apartment, in a spacious, and what’s touted as a luxurious resort (TripAdvisor.com gave it a prestigious award), the cost is around 2100Euro for one week. Split that by amount by 4, and you’re paying 550Euro. Convert that again, and you’re paying around $700 for a week, in one of the most beautiful islands in the world. For $700 a week, you’ll be renting a one bedroom apartment with harbour glimpses in Sydney.

It does help that we made the transaction at a time, when the Australian dollar was trading at a record against the Euro, but I’ll be completely honest… I was expecting to pay a lot more.

So, it was no surprise then to see the official inflation numbers come out earlier this week, which showed that while overall prices were stable, international holiday travel and accommodation prices for the three months to December fall almost 2 per cent, meaning overseas holidays were generally cheaper.

On the flip side, the most significant price rises for the quarter was for domestic holiday travel and accommodation, up 7.3 per cent.

Now, I would love to support Australia’s economy, but when you’re paying such a premium to travel domestically, why wouldn’t you jump on a plane and go overseas and experience very different cultures? (For the record, I will visit Melbourne for a weekend getaway, so don’t call me unAustralian). But it just seems so much more value for money, to travel abroad, especially when La Nina won’t leave Sydney and Queensland alone. #toomuchrain

Incidentally, fruit saw the biggest fall in price, down 13.4 per cent. But I already knew that. I was whinging about the price of limes a few months ago ($2.49 each at Coles)… now I’m only paying 50c each. Vodka soda lime anyone?

And that my friends, is how I report on inflation without boring you too much #smartjournalism

* Oh, I should reference the title also. I’m also going to Ibiza. WHOA, back to the island!

MEMO>ricardo

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Discussion

One thought on “We’re going to Ibiza > Whoa, because it’s cheaper

  1. All discussion about tourism in Australia, from the leading organisations such as Tourism Australia and similar bodies down to individual tour/accommodation operators is always and only about the dollars and how we might gouge more from travellers. Discussion is never about the experience and the excitement both domestic and overseas visitors might experience. Until we start to focus again on why folks would want to visit our shores, to bring back value and stop screwing every traveller for the tourist dollar we are on a long journey to nowhere. Travellers are more than happy to pay for what they do but resent it when they know they are being taken for a ride.

    Posted by JP | January 28, 2012, 9:35 am

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