Australian travellers are being forced to get financially literate ahead of the peak European summer travel period. 

One Australian dollar is currently valued at 0.56 Euros, while the Great British pound is even worse, with one Australian Dollar buying 0.48 pence.

A lower Australian Dollar means more expensive airfares, accommodation, and other general expenses for Australians trying to get their Euro fix. 

Travel content creator Jacki Hodge, or @jetsetting_jacki, has more than 68,000 followers on TikTok where she shares her travel advice and experiences in Europe and Bali.

Ms Hodge is spending her fourth straight summer in Europe this upcoming travel season, and says the circumstances surrounding the exchange rate ‘make a difference.’ 

“It definitely makes you think a little bit more about budget and how far your money can go,” she says. 

“You’ve just got to maybe make some different choices than you would have done a couple of years ago. I would say you’ve got to choose where you want to save money, and that’s kind of up to you. So you’ve kind of got to think about that, definitely a little bit more.”

Australian travellers have US President Donald Trump’s tariffs to thank for the Aussie dollar sinking to lows not seen since the COVID-19 pandemic. 

The Australian dollar has also struggled against the US dollar, currently sitting at 64 US cents, but had fallen as low as 59 US cents following Trump’s tariffs announcement.

While the tariffs have temporarily been paused, the AUD, a commodity currency, is still suffering the effects.

University of Canberra economics Senior Lecturer Dr John Hawkins says any change to the situation depends on Trump’s next moves.

“Exchange rates are notoriously hard to predict. They’re very volatile and even harder to explain,” he says.

“We’re seen as a commodity currency because we export a lot of iron ore and coal. If commodity prices are low, the Australian Dollar tends to fall and be weaker.”

He says in the current political climate, it can always get worse.  

“Commodity prices tend to follow global economic activity. The concern at the moment is Trump starting a trade war is likely to lead to commodity prices being lower and, in turn, make the Australian Dollar lower,” he says.

“If you’re optimistic that Trump is going to come to his senses sometime soon, everything will calm down and go back to normal. There are probably concerns the Australian Dollar could drop a little bit more.”

Wise, an electronic money service provider and travel card, has advised travellers to be smart financially while travelling. 

These tips include using multi-currency cards, choosing the local currency when using ATMs, and avoiding exchanging money at the airport. 

Wise has also suggested Australians reconsider travel destinations and timing, including avoiding travel during peak periods and considering cheaper destinations like Portugal, Slovakia, and Lithuania. 

Dr Hawkins says travellers should also change their money before they depart.

“At least you’re protected against a foreign exchange rate. You may then miss out on the benefit of the exchange rate rises, but at least you can lock in the cost of buying things in Europe,” he says. 

Ms Hodge, who spent last summer in Greece on a working holiday, says those concerned about travel finances should consider doing the same. 

“Australians are really lucky. There are over 40 countries that we can go to and get a working holiday visa. You apply and it gives you the right to work in a country for up to a year,” she says. 

“While you’re working, you can then, in your break, go and travel around, and you’re actually earning money while you’re there. 

“That’s one of the best ways to be able to afford to travel for so long because not many people can afford to do a four to six-month backpacking trip, it’s going to cost so much money. But if you’re able to work while you’re there, then  it’s really, really helpful.”