Interest rates 'affect Aussie holiday plans'

The movement of interest rates has a direct impact on the holiday plans of Australians, according to one expert.

Tony Charters, Tourism and Events Excellence conference conveyor, told e-Travel Blackboard that keeping rates at a steady level is likely to encourage more Aussies to take breaks.

He explained that maintaining the status quo can help provide people with more disposable income, which in turn leads to more people taking breaks.

Mr Charters also suggested that interest rates have a greater impact on travel plans than exchange rates.

The expert added that this is because they directly affect household finances and when rates are high and people are struggling to stay afloat they are less likely to decide to go on holiday.

"Roy Morgan Research data over the past decade shows Australians' propensity to take an annual holiday directly tracks interest rate movements," he asserted.

In May, finance writer Anthony Keane said in a piece for National Features that Aussies planning a holiday should protect themselves against currency value fluctuations by dollar-cost averaging.

Have a question about interest rates? Ask the money gurus at Mozo AnswersADNFCR-1761-ID-800691323-ADNFCR