The impact of the hefty rise in the UK’s air passenger duty (APD), which came into force at the end of last year, is having an impact on long-haul bookings.
According to a leading travel agent, quoted by the Daily Telegraph there has been a 17 percent fall in the number of holidays booked to so-called Band-C countries, between 4,000 and 6,000 miles from Britain, destinations that include the Caribbean, India and Thailand.
Last November countries in Band C saw duty go up from £50 to £75 per person.
An analysis of over 30,000 holidays sold by The Co-operative Travel has indicated since November compared with the same period 12 months ago, sales to the Caribbean are down 20 percent, and India, down 34 percent.
The Co-Operative group said that it was convinced the rise in APD was to blame, rather than the economic uncertainties, because sales of short-haul flights had increased.
The news that long haul business is suffering as a result of APD supports an attack on the UK government by the International Air Transport Association (IATA)
Giovanni Bisignani, IATA’s Director General and CEO, in a speech to the Aviation Club in London, said the government’s policy pillars of excessive taxes, inefficient airport regulation and limiting growth “will destroy the UK’s proud aviation legacyâ€.
“Aviation provides critical global connectivity to this island nation. It is a great mystery to me why the government seems so intent on destroying its competitiveness with a policy agenda stuck in the past,†Bisignani added.
