The opportunity to travel across the ditch is firmly back in the mind of Kiwis as our borders open up and international travel restrictions are relaxed in the wake of Covid-19 restrictions. There will always be factors that we can’t control, but we can certainly get underway with our holiday planning, and start to enjoy international travel again, within the relative safety of neighbouring countries such as Australia or the Pacific Islands.

After a tough few years, you might be in need of a sun-soaked holiday, or be desperate to catch up with family or close friends that you haven’t seen in a while. A holiday loan or personal loan to finance your holiday could be just what you need to refresh for the year ahead.

In this guide, we’ll answer some commonly asked questions about how travel loans or holiday loans work, typical travel costs and things you should consider when holiday planning. Planning ahead can certainly smooth the way to a hassle-free holiday.

Travelling to Australia

As soon as autumn or winter hits in New Zealand, you’re likely to be planning a ski trip or daydreaming about how you can extend your summer or get some mid-winter sun. Australian beaches can be very appealing, especially those in Queensland and the Northern Territory where you can pretty much guarantee sunshine and surf, and a laid back beach vibe to boot. We recommend you start saving, budgeting and planning as soon as possible – and check your leave balance at work to see how much time you can take off.

Flights – costs can vary. It’s worthwhile looking out for cheap deals well in advance, and avoiding the school holidays (check out New Zealand and Australian school holiday dates as they differ), if you can. Costs from New Zealand’s main centres to Sydney, Melbourne or Brisbane vary between $400 to $800 per person. Airlines tend to be flexible with sudden changes of plans, so check that your tickets allow for a refund or credit if you can’t fly.
Accommodation – there’s a huge range of accommodation available in Australia from central city hotels, to beachside apartments or Airbnbs. With any luck, you’ll have family or friends to stay with, but if not, price check package deals with airlines or travel agents (flights plus accommodation deals can be very well priced). Otherwise, consider using accommodation booking platforms such as Booking.com which have a range of free cancellation accommodation options, in case your plans do change. Some accommodation options may also incentivise visitors to stay longer with a “nights free” deal – this can be a great way to boost your accommodation budget. At the lower end of the market, backpackers accommodation can be a great option for affordable accommodation in great locations. We suggest allowing $700-1,000 for mid-priced accommodation in major cities or in popular beachside areas such as the Gold Coast, for a 5 night stay.
Attractions – there’s no point going without seeing the sights! Factor in the places you want to see and bucket list activities before you go. Price them out before you leave so there are no surprises when you get there. Don’t forget to think about transport – can you catch public transport to get there, or will you need a rental car? If you’re planning a week filled with theme parks, shopping and visits to zoos and museums, you’ll want to allow for an activity budget. $50-$100 per day for activity or admission fees should have you covered.
Food – unless you’re staying with family and being waited on hand and foot, food can get expensive if you need to eat out every day. Think about breakfasting in your room, taking snacks with you as you head out for the day and treating yourself to a restaurant meal in the evening. Depending on the wining and dining experience you’re planning for your holiday, a reasonable food and beverage allowance would be $40-$80 per person, per day.
Travel Insurance – pre-Covid, many of us wouldn’t consider travel insurance for a quick trip over the ditch. Do consider purchasing travel insurance to cover you for any unexpected medical costs, lost luggage and flight cancellations. Insurer’s cover will differ when it comes to Covid-19 related issues – check the fine print before you purchase. Allow $70-100 for a 5-day travel insurance policy.
Plan B – what if you suddenly needed to isolate on arrival? Or needed to isolate on your return? Think through these scenarios and the cost impact they may have on your budget. Best case scenario, you could extend your stay at a friend or family member’s house. Worst case, you could be up for increased accommodation and food costs.

We believe Trans-Tasman travellers should be budgeting $5,000 for a 5 day trip to Australia, staying at mid-range accommodation. A significant chunk of this is a contingency fund for unexpected illness or flight changes that you may not need to access, but need to consider as part of your required travel budget.

How a personal loan can help finance your holiday

We understand that $5,000 is a significant amount of money, and you may need some help to get there. That’s where a Nectar personal loan can come in handy. Using a personal loan as a holiday loan can give you plenty of flexibility. It can provide you with a savings boost to make this well-deserved holiday all the more enjoyable, and it could be used for some or all of your trip. By accessing your personal loan quickly, you may be able to secure that flight and accommodation package, or jump on those attraction early bird deals and ensure your holiday is cheaper in the long run.

Personal loans typically have lower interest rates than credit cards so you’re able to pay it off more quickly. Nectar personal loans have the added benefits of providing you with a personalised quote including your interest rate, maximum borrowing amount and repayment options, once you have completed a 7-minute online application. If you have to lock in a deal promptly, you won’t be penalised for making early repayments (for example, you didn’t need that extra few thousand dollars for contingency planning after all).

A personal loan for your holiday may provide you with that extra peace of mind to allow you to truly enjoy your holiday, knowing you’re covered for whichever scenarios may unfold.

What is a holiday loan?

A holiday loan, travel loan or vacation loan is simply a personal loan that you take out with the intention of funding an upcoming trip. You can take out a holiday loan with your bank, or a non-bank lender, and it will be unsecured (so you don’t need any other assets or collateral to apply for it).

How easy is it to get a travel loan?

You can be on your way to booking your trip quick smart, with Nectar providing personalised loan quotes within minutes, and if approved, cash can hit your account the same day. With Nectar, we offer a completely online application process, which our customers love.

“I had Jodie sorting everything on your end and she was amazing, quick and stress-free. Had it sorted and just made it really nice to do.” Trusted Customer, June 2021.

If it’s your first time applying for a personal loan, we have your common questions answered.

How much can you borrow for a holiday?

Once you’ve worked out your holiday budget, use our handy loan calculator to estimate your interest rate and regular repayments. Nectar will lend from $2,000 up to $30,000.

Should I get a personal loan for a holiday?

If you need to top up your savings, or finance an unexpected trip, then a personal loan could be the perfect solution to funding your next holiday. You’ll need a plan to pay it back, and understand what your repayment commitment is.

You’ll also need a reasonable credit score to be approved for a loan. Check out more information about what credit scores are and why they matter.

Getting started with Nectar

We hope we’ve helped you take the stress out of your travel planning and given you some useful tips for your next trip across the ditch. Check out how much you could borrow and learn more about our holiday loans. You can get started with Nectar and receive a loan quote, including your interest rate, maximum borrowing amount and repayment options in minutes. Borrow better, faster today!

*Nectar’s lending criteria and responsible lending checks apply.