Cheap isn't always best

Photo / NZ Herald

Travellers who snap up cheap-as-chips flights across the ditch are getting less than they bargain for as hidden expenses turn a spontaneous weekend away into a pricey undertaking.

Budget airlines Jetstar and Pacific Blue are flogging no-frill fares to Aussie hotspots for as little as $99 each way, attracting punters who forget costs such as insurance, departure tax and credit card surcharges.

Once luggage fees, airline meals, international transaction fees and airport transfers are accounted for, the bill includes about $450 most penny-saving jetsetters don't count on.

House of Travel retail director Brent Thomas warned travellers the cheapest fare was not always the best value.

"There are definitely times when a full-service carrier offers a far better deal," he said.

"If people want to take luggage or buy a few things while away, they shouldn't go for a carry-on only option.

"If you arrive at the airport with an oversize bag it can be pricey."

Once landed, it even costs money to spend money.

Most banks charge $25 to take cash from Australian ATMs and credit card companies add an "offshore service fee" to every transaction.

ASB manager of cards and transactions Shaun Drylie said frequent travellers may benefit from opening a bank account to use while in Australia.

"Open a Commonwealth Bank of Australia account through ASB, and exchange New Zealand money into Australian dollars and deposit it in advance," Drylie said. ASB charges a $5 fee for cash withdrawals overseas.

Thomas said many budget-conscious travellers tried to save costs by not buying insurance, a move that could be costly if disaster strikes.

"People think, 'it's just Australia, I don't need to worry'.

"Just because it's Australia doesn't mean things can't go horribly wrong," he said, citing the Queensland floods.

The issue was close to home for Thomas as his father died in Australia after suffering a heart attack.

"Luckily he had taken out travel insurance, so everything was all covered, including the ambulance, the hospital stay and then the cost of bringing him back.

"It would have been hugely costly otherwise."

STRESSFUL TRIP HOME

Civil servant Amanda Jones, 22, was scraping for funds by the end of her week-long jaunt to Sydney this month because unexpected costs continued to crop up.

"I was stressing on the way home because we'd run out of money," she said.

Despite nabbing cut-price Pacific Blue airfares, Jones and her partner felt the pinch from bank fees, travel insurance and a steep exchange rate.

Food and drink also cost extra on the Pacific Blue flight. "We had the noodle meal, which was just two-minute noodles, for $8 each. A small bottle of water was about $3 and a glass of wine was $7."

Jones also spent $30 in toll calls when the airline sent a text message asking her to call urgently because her flight home had been changed.

After half an hour on hold a representative told Jones the flight had not been changed after all. "That was a waste of time and money."

Jones said she probably would not fly with a budget carrier again. "It wasn't like Air New Zealand, it felt like we were on some kind of bus."

Pacific Blue corporate communications manager Colin Lippiatt said the airline had lowered airfares by eliminating unnecessary extras and focusing on safety and quality service. He believed the onboard menu was reasonably priced.