If you’ve been dreaming of a well-deserved getaway—whether it’s a cruise along our stunning coastline, a flight to see the grandkids, or a bucket-list trip overseas—you might have noticed that the cost of travel just keeps creeping up.
And unfortunately, the latest government move is set to make things even pricier for Aussie holidaymakers.
A New Fee on the Horizon
From January 1, 2027, the Passenger Movement Charge (PMC)—a fee that’s quietly tucked into the price of every international ticket—will jump from $70 to $80.
This increase, announced in the 2026 budget papers, means airlines and cruise companies will be forking out an extra $10 for every passenger leaving Australia by air or sea. And let’s be honest, those costs are almost always passed straight on to the travellers.
This also comes at a time when many are already feeling the pinch from the ongoing cost-of-living crisis. Whether you’re planning a trip to Bali, a cruise to New Zealand, or a visit to family in the UK, every extra dollar counts.
Why Are Holidays Getting More Expensive?
The increase in the PMC is just the tip of the iceberg. Over the past few years, travel experts have noticed a steady rise in ‘hidden’ costs—those sneaky extras that used to be included in your fare but now come with a price tag. Think paying to pick your seat, for checked luggage, or even for a meal on board. And it’s not just the budget airlines doing it anymore; even the big names are getting in on the act.
Adam Ewart, CEO of global luggage delivery service Send My Bag, points out that airlines have been ‘unbundling’ fares under the guise of giving travellers more choice. In reality, it’s a clever way to keep advertised ticket prices low while making billions from add-ons. ‘Airlines have found they can raise billions of dollars from these ‘extras’ without significantly increasing the advertised ticket price,’ he says.
And it’s not just airlines. Cruise companies, hotels, and even car hire firms are all adding extra fees for things that used to be standard. It’s enough to make you want to stay home!
But don’t pack away your suitcase just yet—there are still ways to save.
Top Tips For Saving Money On Your Next Holiday
Book Early and Plan Ahead
It might sound obvious, but the earlier you book, the better your chances of snagging a good deal. Flights and cruises often release their cheapest fares months in advance, and prices tend to rise as seats fill up. If you know when and where you want to go, lock it in as soon as possible.
Compare Prices On Different Devices
Here’s a clever trick: check prices on your phone, laptop, and even a friend’s device. Some airlines use ‘dynamic pricing,’ which means they might show you higher prices if they think you’re likely to pay more based on your browsing habits. Clearing your cookies or using incognito mode can also help you find the best deal.
Travel Light—Embrace ‘Naked Flying’
The latest trend among savvy travellers is ‘naked flying’—not as risqué as it sounds! It simply means travelling with just your essentials: phone, wallet, and maybe a small backpack. By skipping checked luggage and extras, you can avoid a heap of fees. It’s not for everyone, but if you’re up for the challenge, it can save you a tidy sum.
Watch Out for Hidden Fees
Before you book, read the fine print. Are meals included? What about seat selection or entertainment? Sometimes a slightly more expensive fare can actually work out cheaper once you factor in all the extras.
Consider Alternative Destinations and Times
If you’re flexible, look at travelling outside peak periods or to less popular destinations. You’ll often find better deals and fewer crowds—win-win!
Use Loyalty Programs and Discounts
Don’t forget to use any frequent flyer points, seniors’ discounts, or loyalty programs you’re eligible for. Every little bit helps, and sometimes you can score a free upgrade or extra perks.
Pack Smart to Avoid Excess Baggage Fees
Nobody wants to be hit with a hefty fee at the airport because their bag is a kilo over the limit. Weigh your luggage before you leave home and pack only what you need. If you’re travelling with family or friends, see if you can share items to save space and money.
Will The Extra Fees Ever Stop?
Dean Long, CEO of the Australian Travel Industry Association, says it’s ‘disappointing’ to see the PMC increase, but he hopes the extra revenue will go towards modernising Australia’s borders and improving the travel experience.
He also points out that, despite rising costs, Aussies are still determined to travel. ‘Cost pressures are real, but travel holds its place even when household budgets are stretched,’ he says.
It seems that, for now, extra fees are here to stay. But with a bit of planning and some clever tricks, you can still enjoy a fantastic holiday without breaking the bank.
Key Takeaways
- The Passenger Movement Charge for Aussies leaving the country by air or sea will increase from $70 to $80 from 01 January 2027, adding to the rising cost of travel.
- Hidden costs, such as paying extra for seat selection and checked luggage, are now common even with non-budget airlines, making holidays more expensive for Australians.
- Experts advise booking early, planning ahead, and comparing prices across different devices to help save money, as airlines may show higher prices based on your browsing habits.
- Some travellers are adopting ‘naked flying’ – only taking essentials like a phone and wallet – to avoid paying for extras, as Aussies become more selective about what travel add-ons they’re willing to fork out for.
We’d love to hear from you! Have you noticed travel costs creeping up? What are your best tips for saving money on holidays? Do you have a secret for dodging those pesky extra fees? Share your stories and advice in the comments below—let’s help each other make the most of our well-earned adventures!
