Planning a holiday abroad? Here’s a game-changing tip for Malaysian jetsetters from the fintech company Wise: pay for flights in the currency of your point of departure instead of your home currency.
Say you book a Malaysian Airlines flight from London to Kuala Lumpur. If you pay in Sterling (£1,054.39), it’s the equivalent of RM6,050.66 when converted at the mid-market exchange rate.
Pay for the same flight in ringgit and you’ll be charged RM6,482.59 – a whopping RM431.93 difference, or 7.14% of the fare – just from hidden currency-conversion fees!
That’s right: choosing the currency of origin at checkout can have a big impact, especially with living costs rising faster than durian prices in peak season. Here are more examples:
- Flying from Paris to Kuala Lumpur with Japan Airlines? Paying in euros instead of ringgit can save you RM321.20 – perfect for a shopping spree or a nice meal at an “atas” mall like Pavilion KL.
- Heading from Dubai to Kuala Lumpur with Emirates? Paying in Emirati Dirhams instead of ringgit can leave RM334.60 extra in your pocket.
Research shows that many popular airlines, including homegrown carriers, involve an additional 2.8% to 9.5% in currency-conversion fees when paying in the home currency. These fees can quickly add up!
Here are the average price differences when paying in ringgit on airline websites, instead of the flight’s currency of origin:
In short, follow these three simple steps to save more on your travels:
- Always choose to pay in the currency of the country from which you’ll be travelling.
- Be mindful of exchange rates and compare them with the mid-market rate to make informed decisions.
- Review your card issuer’s foreign transaction fees to understand the real costs before swiping.
By following these tips, you can make your travel budget go further, leaving more to spend on shopping, food, and unforgettable experiences. Happy holidays!