Here’s a Smart Way to Save When Booking Overseas Flights
Planning a holiday abroad? Here’s a game-changing tip for Malaysian jetsetters from the fintech company Wise: pay for flights in the currency of your point of departure instead of your home currency.
Why Pay in the Currency of Your Point of Departure?
Say you book a Malaysian Airlines flight from London to Kuala Lumpur. If you pay in Sterling (£1,054.39), it’s the equivalent of RM6,050.66 when converted at the mid-market exchange rate.
Pay for the same flight in ringgit and you’ll be charged RM6,482.59 – a whopping RM431.93 difference, or 7.14% of the fare – just from hidden currency-conversion fees!
Examples of Savings
- Flying from Paris to Kuala Lumpur with Japan Airlines? Paying in euros instead of ringgit can save you RM321.20 – perfect for a shopping spree or a nice meal at an “atas” mall like Pavilion KL.
- Heading from Dubai to Kuala Lumpur with Emirates? Paying in Emirati Dirhams instead of ringgit can leave RM334.60 extra in your pocket.
The Hidden Costs of Currency Conversion
Research shows that many popular airlines, including homegrown carriers, involve an additional 2.8% to 9.5% in currency-conversion fees when paying in the home currency. These fees can quickly add up!
Avoiding Currency Conversion Fees
Here are the average price differences when paying in ringgit on airline websites, instead of the flight’s currency of origin:
Smart Ways to Save
- Always choose to pay in the currency of the country from which you’ll be travelling.
- Be mindful of exchange rates and compare them with the mid-market rate to make informed decisions.
- Review your card issuer’s foreign transaction fees to understand the real costs before swiping.
Conclusion
By following these simple steps, you can make your travel budget go further, leaving more to spend on shopping, food, and unforgettable experiences. Happy holidays!
FAQs
* Why does currency conversion matter?
Currency conversion fees can add up quickly, making a significant dent in your travel budget.
* How much can I save by paying in the currency of my point of departure?
The exact amount will depend on the airline, flight, and currency conversion fees. However, following the tips above can save you 2.8% to 9.5% or more.
* What other fees should I consider when booking flights?
Be mindful of foreign transaction fees charged by your card issuer, as well as any additional fees for things like baggage, seat selection, or travel insurance.