What tax changes are affecting holiday bookings?

Tax changes include a freeze on tax thresholds and an increase in Air Passenger Duty (APD).

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UK Tax Hikes Put Summer Holidays on Hold

Q: Why are Brits delaying summer holiday bookings?

Brits are delaying summer holiday bookings due to increasing tax pressures in the UK, which are reducing disposable income.

Q: What is the impact of delayed bookings on the travel industry?

The delay in purchasing decisions introduces considerable uncertainty for the travel sector, with a shift towards last-minute arrangements.

27 Jan

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Summary

UK tax rises are causing Brits to postpone summer holiday bookings.
Higher taxes reduce disposable income, leading to cautious consumer behavior.
Travel industry fears market uncertainty due to delayed booking decisions.

UK Tax Hikes Put Summer Holidays on Hold

Brits are postponing their summer holiday bookings due to increasing tax pressures in the UK, an industry executive has warned. January, typically a peak booking month, saw a significant slowdown as consumers adopted a 'wait-and-see' approach, hoping for last-minute discounts. This trend is attributed to tax rises implemented by the Chancellor, including a freeze on tax thresholds and an increase in Air Passenger Duty (APD).

These tax changes have diminished disposable income, prompting travellers to become more cautious. The chief executive of Jet2 highlighted a market shift towards last-minute arrangements, a departure from the usual early booking patterns. This delay in purchasing decisions introduces considerable uncertainty for the travel sector. While package holidays are still sought for their guaranteed elements, the overall booking landscape has become less predictable.