The price of air tickets in Ecuador increases

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From next April, We will see a new increase in the price of air tickets in Ecuador due to the increase in VAT 15%.

Get ready to pay more for your air travel. Starting next April, the value of air tickets in Ecuador will experience an increase due to the increase in the Value Added Tax (IVA) of the 12% al 15%. A new challenge for travelers is added to our small and delicate air market that seeks this 2024 sustain the operation, not reduce frequencies and be able to survive an environment with a negative image of the country due to the insecurity we experience.

Tickets go up in Ecuador

The Ecuadorian Government has decided to increase VAT as a measure to raise more resources and face the difficult economic situation, social and security of the country. A measure that will be reflected in an increase in the total value of the ticket, which may not be so much as it is a 3%, but if it is added to the annual increase that occurs in airport taxes Quito and Guayaquil, will undoubtedly hit travelers' pockets to some degree. This increase will be reflected from the 1 april 2024.

For this, I have been promoting the idea that there is a Differentiated VAT for air transport, but there has not yet been any intention on the part of the authorities to start debating it.

What does this mean for travelers?

An increase in the cost of flights, both national and international. The increase is direct from 3%, which will directly impact the pockets of Ecuadorians and foreigners who plan to take a trip by plane.

This percentage increase is calculated on the net fare charged by the airline, This means that fees and taxes are not taken.. Having said that, If an airline charges $100 for a Guayaquil flight – Bogota, the passenger will pay now 115 instead of 112 and to this value we add the rest of the government and airport items.

Depending on the domestic or international trip, will have to add the 3% increase in VAT and the increase in airport taxes, which this year increased on average by one 3%, that in values ​​this represents between the $0.40 until the $1.82 as the case may be.

With a practical case: Today a flight Quito – Guayaquil – Quito costs 97.83 with fees and taxes, from April it will cost $99.45.

What alternatives do travelers have??

• Plan ahead: Looking for deals and purchasing tickets early can help cushion the impact of the VAT increase.
• Consider other means of transportation: If fate allows, You can choose to travel by bus or shared transportation, which are generally cheaper options than flying.
• Reduce expenses on other aspects of the trip: Find cheaper accommodation, Eating at more affordable restaurants or doing free activities can help offset the higher cost of airfare..

The increase in VAT is a reality that will affect all travelers. Nevertheless, with planning and looking for alternatives, it is possible to minimize the impact on the budget of your next trip.

Here we leave you some tips to save on your trips:

• Use a flight price comparator.
• Subscribe to airline price alerts.
• Consider traveling in low season.
• Take advantage of offers and promotions.
• Bring your own hand luggage.
• Choose low cost airlines.

Remember that traveling is a right and a necessity, not a luxury. With a little planning and effort, you can continue enjoying the world despite the increase in VAT on air tickets, which as we see on paper is minimal, but adding the other increments, It's already becoming an important number..

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