The war in the Middle East has had a profound impact on the travel industry, with a substantial shift in holiday booking trends. Many holidaymakers are changing their Easter travel plans, with up to 40% opting for short-haul and perceived lower-risk destinations. This sentiment is pushing many to consider "staycations" closer to home, with some UK holiday firms reporting a booking surge of up to 235% compared to the previous year. Destinations like Norfolk, Pembrokeshire, and the Isle of Wight are seeing increased interest, a trend not seen since the pandemic.
The conflict has led to a significant increase in jet fuel prices and operational costs for airlines. European jet fuel prices have more than doubled, reaching $1,698 per tonne from $830 before strikes on Iran began in late February. This spike, coupled with the closure of the Strait of Hormuz, is causing airlines to reroute flights, leading to longer journeys and higher ticket prices. Some airlines, such as SAS and Air New Zealand, have already canceled flights, and experts warn of potential 30% to 50% hikes in plane tickets for European summer holidays, potentially adding an extra $600 for a family of four travelling to popular destinations like the Canary Islands, Greece, or Morocco.
Countries previously popular with tourists, such as Cyprus and Turkey, are seeing a decline in interest due to their proximity to the conflict zone and events like a drone attack on the RAF base in Cyprus. Concerns about potential flight groundings, fuel shortages, and increasing airfare are prompting travelers to delay decisions and book later, often opting for shorter trips and maintaining flexibility. There's a growing preference for "safe-haven" destinations like Spain, Greece, Portugal, and the Caribbean, which are perceived as further from conflict zones. Rail travel is also seeing a boost, with Eurostar ticket sales increasing by 25% and almost double the number of Britons considering train travel in France for 2026.
