Travel tip: the Aussie dollar is falling everywhere, except these two places

Japan and Indonesia are the bargain destinations for Australian travellers according to the Expedia Foreign Exchange Index that measures the performance of the Australian dollar against major global currencies.

Despite our dollar dipping to a three-and-a-half year low against the US dollar, it increased 2.3 per cent in 2013 against the Japanese yen and 7 per cent against the Indonesian rupiah.

The Expedia index, released this week, also ranks Brazil, Canada, Thailand and New Zealand as the countries that give us the most bang for our buck.

Georg Ruebensal, the managing director of Expedia Australia and New Zealand, says the decline in the dollar had not deterred Australians from travelling overseas.

"However, Aussies need to be smart as their purchasing power is impacted. There are still plenty of places both close to home and further afield that provide great value."

Expedia's index rated traditionally pricey Japan as the best value for money for the second year in a row, with interest in regions such as Okinawa and Hokkaido increasing 50 per cent through Expedia in 2013.

The online travel company says this signals that savvy Australian travellers are already taking advantage of the exchange rate with Japan.

Demand for Bali is also up by 50 per cent with Lombok, Legian, Seminyak and Jimbaran the hot spots.

Mr Ruebensal says that in in addition to paying attention to exchange rates, travellers can also stretch their budgets further by hunting for deals, being flexible with dates, and bundling hotels and flights to benefit from additional discounts.