Will falling oil prices result in lower airfares? Barbados hopes so!

Barbados Virgin 747-400

Twenty years of Advanced Passenger Duty

Adrian Loveridge - tourism expert, hotel owner

Adrian Loveridge – tourism expert, hotel owner

It seems almost inconceivable to accept that the dreaded APD (Advanced Passenger Duty) was implemented in the United Kingdom, or others would say thrust upon the industry, some twenty years ago.

There has been a lot of recent misinformation spread in the media, so I think it is time to clarify just exactly what is happening. From 1st April 2015, the two higher mileage bands, C and D will be abolished and flights from the UK will then be included in band B at an APD rate of GB Pounds 71 per passenger for economy and GBPounds 142 for higher classes of travel.

Many are watching to see if the reduced aviation fuel costs with the continuing plummeting fall in oil prices, together with a slightly lower APD rate will be reflected in the cost of airfares from next April.

There are other glimmers of hope on the horizon including a strong lobby to have APD removed, or at least lowered on airline tickets for children. Personally I believe it would make a massive difference for families contemplating holidays in the Caribbean, especially during the softer summer months.

Scotland the Brave   

Following the Scottish referendum, despite not gaining sufficient support for independence the country has been promised increased autonomy and greater self governance. This could result in the reduction in the rate of APD for flights departing Scotland to give their airports a competitive advantage.

Thomas Cook and Thomson have clearly demonstrated there is a vibrant market for non-legacy airlines operating to the Caribbean and if Virgin or British Airways cannot be enticed then they appear to be the logical alternatives.

It seems inconceivable that we could not fill at least one flight a week from Glasgow or Prestwick.

Northern Ireland successfully applied and negotiated a zero rate of APD for long haul transatlantic flights out of Belfast. Now that low cost carrier Norwegian Air International are legally domiciled in neighbouring Eire, perhaps they could be persuaded to start Caribbean services, even if initially that would be in tandem with another island, like St. Lucia.

Will the new more commercially motivated Barbados Tourism Marketing Inc, drive and direct these and other initiatives in concert with accommodation groupings like the Intimate Hotels of Barbados and our growing villa sector.

As a destination, I think we have to get more involved in making it easier and more affordable for our visitors to get to airports servicing Barbados; through smart partnerships with train operators, car parking and overnight hotels. Almost always these are critical financial factors in the selection of a holiday, especially when a family is involved.

Re-DISCOVER Barbados continues to support tourism

Sufficient restaurants have agreed to continue the re-DISCOVER dine-around promotion throughout the winter. Of course with the requirement of having to book, they can individually revenue control numbers. From all indications roughly half of the re-DISCOVER menu take-up until now has been by local or long term visitors. I commend those establishments who have concluded that this is the best way of maintaining loyalty with the hundreds of residents who have taken advantage of the offer over the traditionally quieter months.

With the invaluable help of our incredible webmaster we shall post a new listing on 16th December 2014, highlighting all the new or continuing existing partners.

1 Comment

Filed under Aviation, Barbados, Barbados Tourism

One response to “Will falling oil prices result in lower airfares? Barbados hopes so!

  1. John Hanson 1781-1782, I SERVE 1788-1792 BARBADOES,

    Answer is NO, Guyana taxes on oil coming was 19% now with the drop in oil the government up the tax to 35% ,
    Barbados and LIAT , with Antigua , St.Vincent will keep the prices to fill the gaps in their Pockets. They want what they want no matter what.