No stopping wanderlust Malaysians as they opt for budget travels
SHAH ALAM - In the face of rising costs and economic uncertainties, Malaysians have not abandoned their travel dreams. On the contrary, they are approaching their journeys with greater financial savvy, as revealed by the latest data from global technology company Wise.
After more than two years of lockdown due to the global pandemic, Malaysians are ready to explore the world again. However, they are doing so with notable changes in their spending patterns. Wise's data highlights a 13 per cent increase in international travel among their Malaysian customers during this year's summer break, which ran from May 26 to June 4.
This surge reflects a strong desire to make up for lost time.
Prioritising Experience Over Retail
The effects of inflation and rising costs have influenced the way Malaysians approach travel. Entertainment, leisure and adventure-focused activities are now top their travel priority list, with recreational spending seeing a remarkable 28.5 per cent increase. The tables have turned with many opting out of retail therapy while abroad as they choose for a more excitement.
This shift in spending patterns signifies a willingness to invest more in the moments that create lasting memories, shifting from accumulating possessions to accumulating experiences.
Thoughtful Destination Choices
Malaysian travellers are also becoming more discerning in their choice of destinations, a reflection of their desire to maximize their travel budgets. This summer, popular choices included countries like Thailand and Indonesia, likely influenced by favourable currency conversions. On the other hand, those with a penchant for long-haul adventures set their sights on far-flung locations such as Japan, the United Kingdom and down under, Australia.
This diversification in travel destinations reflects their eagerness to explore and experience the richness of different cultures and landscapes.
The Role of Cash in Travel
In a world increasingly driven by digital payments, cash still has a role to play in travel. Many holidaymakers, according to Wise, prefer to withdraw cash from ATMs while abroad with an average transaction amounting to RM 681.68. This reliance on cash suggests the need for convenient and cost-effective financial solutions during international travel.
Wise country manager Lim Paik Wan said the evolving trends show that despite the rising cost of living and economic uncertainties, it was good to see people still had the strong desire to travel.
“What's changed is the way they are spending their holidays and allocating budgets. For instance, people are making cutbacks in certain categories such as shopping when travelling abroad and indulging in experiences and recreational activities.
"What's important is ensuring their efforts to save aren't futile. Whether it's marked-up exchange rates or additional ATM withdrawal fees – these are avoidable costs, especially when there are competitive products in the market to use that will save you money.
“A multi-currency card allows you to hold money in various currencies and spend in the local currency wherever you are in the world at the mid-market exchange rate, which goes a long way in stretching holiday budgets and gaining more savings over time,” she said.
A New Way to Travel
Malaysians need to explore the world has since evolved and now, it is no longer about just reaching the destination but to immerse themselves in the local culture and experiences it provides. By focusing on making memories and seeking out adventures, they are turning their holidays into transformative journeys.
Despite economic challenges, the wanderlust continues to grow. Malaysians are proving that, with the right mindset and financial tools, the world can still be your oyster, offering unforgettable experiences and cherished moments.
Here are some tips by Wise on how to avoid hidden fees when travelling overseas.
