Travellers who had originally planned trips to the eastern Mediterranean this summer are increasingly switching their bookings to destinations in Western Europe and the Caribbean as a result of the ongoing U.S.–Israel conflict with Iran, travel companies report.
How the Conflict Is Affecting Travel Plans
Travellers from the U.K. and mainland Europe are increasingly cancelling or changing plans to visit Cyprus, Turkey, and Greece, instead opting for destinations such as Italy, Spain, Malta, and Croatia, amid ongoing flight cancellations and regional airspace closures.
Europe’s largest holiday operator, Tui, reported a sharp rise in demand for holidays to Spain, Portugal, Greece, and Cape Verde, with many customers choosing to alter their original plans rather than fully cancel. Hays Travel highlighted particularly high demand for trips to Italy, Malta, and Croatia, along with a marked increase in interest in long‑haul travel to the Caribbean.
Holiday operator Kuoni described Caribbean demand as “off the charts”.
Limited flight availability has also driven prices up. According to The Guardian, the cheapest return flights from London to Antigua and Barbuda rose from £720 to £917, a 27% increase in just one week.
Economic Impact on the Travel Industry
The conflict is beginning to take a significant toll on the travel sector. Shares in the online holiday agent On the Beach fell by up to 13% after the company suspended its profit guidance, citing the impact of the war and a slowdown in bookings to Turkey, Cyprus, and Egypt.
Other travel stocks, including easyJet and Jet2, have also declined. Meanwhile, the online agent Loveholidays is reportedly preparing to delay its planned London Stock Exchange listing.
Tourism in the Middle East
Tourism within the Middle East has been severely affected, with the U.K. Foreign Office advising against travel to the United Arab Emirates (UAE), Jordan, Qatar, Bahrain, and Oman.
The World Travel & Tourism Council estimates that the region’s tourism sector is losing approximately £448 million per day in visitor spending, putting its expected international visitor income of $207 billion this year at risk. The conflict has also damaged major sites and infrastructure, including attacks on prominent hotels and disruptions at the Dubai International Airport.
How will the aviation industry continue to be affected by the conflict? Share your thoughts in the comments below.
