Related Links

VAT rise will not affect package holidays

Date Posted: 13/01/2011

ABTA - The Travel Association has reminded travellers that the recent VAT rise to 20 per cent does not apply to the total cost of an overseas package holiday.

While tour operator’s profit margins are subject to VAT, the rise should only represent a tiny (if any) increase in cost to consumers. GTOs favouring package holidays can therefore organise their trip safe in the knowledge that they will not be hit by increased costs.

Victoria Bacon, ABTA head of communications, commented: “VAT is now at a historically high level but I can reassure customers that the tax does not apply to the total cost of an overseas package holiday. This time of year is also traditionally when ABTA members put out their best prices and have the widest availability and choice. There couldn’t be a better time to book.”

For further information log onto www.abta.com

facebook twitter make as homepage