How a holiday loan can help you with Trans-Tasman travel

The opportunity to travel across the ditch is firmly back in the mind of Kiwis as our borders open up and restrictions around quarantining on arrival are loosened. There will likely be factors over the coming months 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 2020, 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 over a year. 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 in uncertain travel times. Planning ahead can certainly smooth the way to a hassle-free holiday.

Travelling in the Trans-Tasman bubble

As soon as winter hits in New Zealand, you’re likely to be planning a ski trip or daydreaming about how you can get some mid-winter sun. Australian beaches can be very appealing at this time of year, 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.  

  1. 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 $600 to $700 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.
  1. 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 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 $500-700 for  mid-priced accommodation in major cities or in popular beachside areas such as the Gold Coast, for a 5 night stay.
  1. 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 should have you covered.
  1. 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 for the day and treating yourself to a restaurant meal in the evening. Depending on the wining and dining you’re planning on for your holiday, a reasonable food and beverage allowance would be $40-$80 per day.
  1. 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 for a 5-day travel insurance policy.
  1. Plan B – what if you suddenly needed to isolate on arrival? Or needed to isolate on your return? Perhaps, the travel conditions between the two countries change during your trip and borders close temporarily? 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, or need to fund a managed isolation slot.   

We believe Trans-Tasman travellers should be budgeting $5,000 for a 5 day trip to Australia. A significant chunk of this is a managed isolation allowance that you may not need to access, but consider it part of your required travel budget this year.

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 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 instantly when you complete a 7-minute application. If you have to lock in a deal promptly, and you won’t be penalised for making early repayments (for example, you didn’t need that extra few thousand dollars for managed isolation 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 are simply personal loans 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 personal loan applications pre-qualified  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 calculate your interest rate and regular repayments. Nectar will lend you as little as $1,000, to as much as $25,000 in unsecured lending.

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 conditional approval 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.