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WTM Industry Report: APD increase to have 'detrimental' effect on business

The WTM Industry Report 2013 revealed a range of insights into the travel and tourism industry following a survey of 1,277 senior industry executives attending WTM 2013, as well as 1,001 UK holidaymakers, all of whom have been on at least one seven-night holiday - either in the UK or overseas - this year.

Findings included the Government's appetite for increasing Air Passenger Duty (APD) is continuing to have an adverse affect on both the inbound and outbound holiday markets, and threatens the legacy of the London 2012 Olympics.

Seven out of ten (71%) senior industry executives predict that the next increase in 2014, one year after the previous increase, will have a detrimental effect on business. Research showed that nearly half (41%) of holidaymakers polled will change their holiday plans because of the tax's next increase on April 1, 2014.

Other findings of the report revealed that no frills airlines could introduce Business Class perks for UK holidaymakers who are prepared to pay as much as ?350 for an upgraded inflight experience, with more than a fifth of the UK holidaymakers polled saying said they would pay extra for a seat in a no-frills Business Class section; one in three UK holidaymakers have no intention of going on a cruise holiday, however, 39% of holidaymakers polled by WTM who had not experienced a cruise said they would be interested in trying one - and a quarter (23%) said they had been on a cruise and enjoyed it; and the threat of a ?60 fine for a rule-breaking term-time trip is not a deterrent for more than a third of parents. Parents say they are prepared to face the fines because of the price differentials for holidays taken in term time compared to rates charged during school holidays.



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