Brits set to face up to £468 price increase on summer holidays this year
British holidaymakers have been issued a warning on any upcoming trips abroad, with big changes coming to flight prices.
This week people were urged to make sure their passports were in date and to get them renewed if they wanted to avoid any issues at the airport.
Fortunately, it was also announced that the cost of renewing your passport is going up next month, so it's worth getting any applications in before the end of March.
But with people swiping through different holiday destinations in the coming weeks, there's another price increase coming into effect next month, and it will affect anyone who's travelling out of the UK.
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While every trip abroad will be affected, it's flights to the likes of Australia, Japan, Mexico, or Thailand which will end up making the biggest dent on your bank account.
HMRC has confirmed new Air Passenger Duty (APD) rates, which are set to come into effect on 1 April.
This will likely have an effect on the prices of plane tickets, as while airline operators pay APD to HMRC, this will have a knock-on when it comes to booking flights, as ticket prices usually include a charge to cover this.
The rates will vary based on flight duration and class of travel though - but it's nothing new; this tax was introduced back in 1994, in response to the environmental impact of air travel.
These new rates range from £8 per person up to £1,141, and while economy passengers will only be paying a lower rate, those looking to fly in premium economy, business and first, are set to pay a hefty price.
APD rates have been divided into four bands, which can be seen below.
Reduced rates apply to economy class passengers, standard rates to classes above economy, but not first, and higher rates to first class.
Domestic band
- Reduced rate - £8
- Standard rate - £16
- Higher rate - £142
Band A (from 0 to 2,000 miles)
- Reduced rate - £15
- Standard rate - £32
- Higher rate - £142
Band B (from 2,001 to 5,500 miles)
- Reduced rate - £102
- Standard rate - £244
- Higher rate - £1,097
Band C (over 5,500 miles)
- Reduced rate - £106
- Standard rate - £253
- Higher rate - £1,141
The largest increase is for premium rates in Band C, rising from £674 to £1,141.
First class lights to east and southeast Asia, South America, and Australia will be hit by a £468 increase, while premium trips to destinations like Qatar or Dubai will only be hit with an increase of £450.
Higher rate Band B trips have gone from £647 to £1,097, which isn't ideal for those looking to travel in luxury.
Domestic and Band A trips to destinations like Paris, Madrid, or Rome, will also see a jump of £38 for first class travellers, from £84 to £142.
Luckily for those looking at cheaper options, the increase isn't as drastic, though it will mean you'll have to set a bit more money aside when planning your journeys.
For these, it's Band B and Band C sections that are hit hardest, rising by £12 for economy passengers.
It may not sound like a lot, but that budget airline ticket might see a huge increase in price as a result.
Joshua Nair