CONSUMERS’ ATTITUDE TO THE AIR PASSENGER DUTY IN THE UK – AN EXPLORATORY STUDY

Abstract

This paper explores British consumers’ knowledge, awareness, attitude and reaction to changes in the air passenger duty imposed on outbound air travel from the UK. Survey data were collected using an online survey. The key findings of this paper are that firstly, consumers are not aware of the amount of taxes they pay on air tickets and therefore, this may be limiting the ability for the taxes to influence behaviour. Secondly, increases in this tax will not discourage consumers to travel abroad but rather affect consumers’ intention to finance such an increase by either reducing their consumption on tourism related products at the destination or by reducing their consumption of other products in the UK. Thirdly, there is an asymmetry in the response of consumers’ reaction to increases in taxes as compared to reduction in taxes. These findings can form the basis for an in-depth study on consumer behaviour in the UK travel industry.