According to a new report by National Center for Policy Analysis Research Associate, Jacob Kohlhepp, the triple threat of travel-based taxes on hotel, car rental and airline tickets can increase costs up to 30 percent for family travelers.
“In a drive toward more revenue, officials at every level of government have raised a trifecta of travel-based taxes dramatically,” says Kohlhepp. “While travel taxes are a politically popular revenue tool, they discourage travel and tourism – particularly for low-income individuals and families.”
The tax rates on hotels, car rentals, and airline tickets vary by state. According to the report:
- Twenty-two states charge a hotel occupancy tax, which can range from 3 to 13 percent of a night’s stay;
- Taxes on car rentals can raise rental prices by nearly 25 percent;
- There are seventeen different taxes and fees levied on air travel, which can increase base airfare by 30 percent.
“There is no doubt that air travel is more affordable for families than it was back in the day when were prices were set by the government,” says Senior Fellow Pam Villarreal. “But other aspects of travel are prohibitive, particularly in large cities.”
Travel Taxes: The Hidden Trifecta: http://www.ncpa.org/pub/travel-taxes-the-hidden-trifecta
ExpertFlyer Hot Topics — Where the Rubber Meets the Runway
The Travel Technology Association (TTA) recently released a study, which continues to fuel a flame of discord between some key airlines and online travel resource sites, including ExpertFlyer, Hipmunk, Travelzoo, among many others.
After numerous mergers, only four major airline carriers currently control 80% of the domestic air travel market. The study concludes that by prohibiting display of price and scheduling information on certain travel websites, airlines are making it harder for consumers to find the right flight at the best price, resulting in long-term consequences:
- 223 million American leisure and unmanaged business travelers would pay an additional $6.7 billion in airfare annually – equivalent to $30 more per ticket or an 11 percent increase, which is about $120 for a family of four making a trip.
- 41 million travelers would choose not to fly because of the higher ticket prices, denying revenue to airlines.
- The air travel market would suffer an annual $600 million loss.
To read the full study, click here and view the clickable infographic below.
Benefits of Preserving Consumers’ Ability to Compare Airline Fares – See more at: http://www.tnooz.com/article/delta-feuds-with-online-travel-sites-after-removing-fare-and-schedule-data/#sthash.Owwl9xFz.dpuf