The accompanying table shows how the Aussie dollar has moved against the currencies of popular travel destinations over the past 12 months.
Cost-effective destinations include Turkey, where the Aussie dollar has jumped by around 90 per cent against the lira, or Argentina, where it has gained about 34 per cent.
Sri Lanka, where the local currency has slipped by about 70 per cent over the same period, could be a bargain for travellers prepared to brave the recent economic and political upheaval, adds Megginson.
Georgina Finn, director of Celtic Travel Services, has been advising travellers for about 30 years, and says the soaring cost of flying, rather than sharp currency fluctuations, is the biggest deterrent for those considering international travel.
“Many people have saved their travel budget during the COVID-19 lockdown and are set to go, regardless of currency fluctuations,” Finn says.
But she is bracing for a downturn next year as rising costs, increased interest rates, likely higher taxes and volatile currencies begin to bite.
Vanesa Tihic, the owner of Boutique Travel Services, says demand for overseas holidays remains strong to destinations such as Japan, which has announced an easing of entry requirements.
Paul Moran, principal of Moran Partners Financial Planning, recommends travellers pre-pay their tickets and accommodation and “avoid a shock when you get there”.
“With such volatility it is almost impossible to pick a currency direction,” says Moran.
He also advises purchasing foreign currency regularly in the lead up to the trip, regardless of the rate, to smooth out the troughs and peaks in global exchange markets.
“Those using their credit cards should buy in the local currency to avoid high currency conversion rates,” he adds.