Friday, April 13, 2012

UK: Royal Mail Increases First Class Letter Postage by 30%

The Royal Mail, the UK equivalent of the US Postal Service and national postal systems around the world, has forced those in the UK to buy up stamps now, as very steep postage rates are about to be hiked in Britain, effective April 30, to make up for sliding revenues.

The price hike will raise the cost of sending a letter first class by a huge 30% to 60 pence (US$0.96), and the slower, second class by 39% to 50 pence.

COMMENT: Like the USPS, the Royal Mail has struggled to maintain its revenues in recent years, battered by decreasing volumes driven by the rise of email, electronic bill-paying and more dependable courier services. The Royal Mail said it has lost 1 billion pounds (US$1.6 billion) over the last four years.

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