Survey: Austrians spend 4.7 billion Euros on summer vacation

4.3 million Austrians plan a summer vacation and spend € 1,100 per person – that is a total of as much as 4.7 billion Euros. However, unlike in the previous year, travel-loving Austrians increasingly rely on their so-called “holiday money” and less on their savings when it comes to financing. When on holiday, Austrians prefer to pay cash, followed by ATM and credit card. In order to ensure the highest possible security standard for cashless payments, the verification of credit card payments by signature will be replaced for all card holders by code entry in the near future. However, only every second Austrian knows the code of their credit card. At Erste Bank und Sparkasse the customer has the possibility to set a code they want and now, in addition to that, there is also the possibility to digitally retrieve their personal code in George or the George Go app.

"According to our latest Integral survey, Austrians prefer to pay with cash on holiday, followed by ATM and credit card," said Ertan Piskin, Head of Card Business at Erste Bank. However, cash (-3 percentage points, 79 percent) and debit cards (-8 percentage points, 42 percent) are losing in popularity compared to the previous year. The credit card, by contrast, is slightly gaining in popularity (+3 percentage points, 40 percent). If you ask Austrians whether they know the code of their Visa card or other cards, almost every second Austrian says they don’t (47 percent). One of the reasons for this: The verification of the payment has been done by signature over the last decades. In order to guarantee the highest security standard, verification of credit card payment is now switched to pin code entry. "If our customers don’t remember their code, they can now access their code for both ATM and credit cards digitally via George in a quick and secure manner. On the go, using the "code display" function in the George Go app is a quick and easy way for s credit card holders to access the code,” said Piskin and added: "Moreover, there is also the possibility to specify a desired code in advance."

Austrians spend their holidays abroad

The majority of travel-loving Austrians go abroad during the summer, with eight in ten planning an international trip; four in ten prefer to take their holiday within Austria. According to the survey, 59 percent stay within the Eurozone. "This benefits the holiday budget, because no fees are incurred when paying by ATM or credit cards within the Eurozone," says Ertan Piskin. However, one in five Austrians wants to visit a country outside the Eurozone. According to the representative Integral survey commissioned by Erste Bank und Sparkasse more than half of the Austrians use their savings (56%, 2017: 77%) for their summer vacation, while one third (35%, 2017: 27%) uses the 14th salary for it and an increasing number of those who would like to go on holiday asks family, friends and acquaintances for financial support this year (9%, 2017: 4%).

Currency exchange usually before departure at the bank

According to the latest survey, six out of ten Austrians change their money before they go on holiday at their bank. One in four likes withdrawing cash from an ATM at their destination, while one in three prefers to procure the foreign currency from a bank at their destination and one in five would get themselves the destination’s currency at a foreign exchange office. However, experts warn against this: “Foreign exchange offices at holiday destinations usually offer poor rates and high fees. Foreign currencies should be procured before leaving, ideally from your local bank. Find out the exchange rate and learn about any possible fluctuations before leaving – this can protect you from nasty surprises.” With the exchange office app, Erste Bank und Sparkasse offer the opportunity to order the required currency via smartphone to the desired branch and pick it up there.

GeoControl is unknown to a majority of AustriansAbout three and a half years ago, GeoControl was introduced by the Austrian banks in order to prevent the so-called "skimming fraud", the reading and copying of the magnetic stripe. However, only 36 percent of the population know this safety function. Despite the low awareness of GeoControl, the safety function fulfils its purpose. Since its introduction in December 2015, the number of skimming cases has been significantly reduced. "This shows us that our customers are better protected against card fraud by this feature," says Piskin. Erste Bank and Sparkasse have listed on their website the countries in which the ATM card can be used without restriction. If one’s travel destination is not listed, the GeoControl function can be deactivated for the duration of the stay abroad. "At our bank, you can do this within seconds via digital banking, CardControl App, by calling the service hotline or contacting the banking consultant," Piskin informs. The ATM card is then unlocked for worldwide use again. After a certain period of time – the length of which can be determined by the clients themselves – GeoControl will be automatically reactivated. 

14 money tips for the holiday

Experts from Erste Bank und Sparkasse have summarized the most important tips for a cost-saving holiday in a nutshell:

1. Change money before the holiday starts at your local bank
2. Have some cash with you for drinks, snacks, tips or taxi rides
3. Check the cash limits of your destination country
4. Memorize the codes of the cards
5. When paying with cards in non-Euro countries make sure you pay in the national currency
   
6. Check and, if necessary, deactivate GeoControl to be able to withdraw cash worldwide
7. Check the payment limits of the ATM and credit card and adjust if necessary
8. Check if your credit card contract provides travel insurance
9. Avoid cash withdrawals with credit cards due to the relatively high fees
10. Keep rechargeable cards (prepaid cards) in a safe place as a cash substitute in case of emergency
11. Payment by ATM and credit cards is free in Euro countries
12. Cash withdrawals outside the Euro area are cheapest with the debit card
13. In the case of cash withdrawals with the ATM card at the ATM, do not convert to your home currency.
14. For cash withdrawals, always check whether the ATM operator requires an additional fee for the withdrawal. If so, this is indicated before the withdrawal and the withdrawal process can still be cancelled.

Hardly any acceptance points for old traveller's cheques anymore
Traveller’s cheques have not been available in Austria for years, but there are still some in circulation. "Anyone who has old traveller’s cheques at home should act," advises Piskin. Traveller’s cheques from American Express can be cashed until 30 July, 2018 at an Erste Bank or Sparkasse branch. After that, there will be hardly any acceptance points for traveller’s cheques in Austria anymore.

^{About the survey: Erste Bank commissioned the market research institute Integral to conduct a telephone survey on means of payment on vacation. From 1 to 13 June 2018, 500 people were asked about their holidays - among other things about holiday destination, estimated budget, financing of travel, means of payment. The results are representative of the Austrian population aged 14 and over, that is around 7.5 million people.}