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Reuters

Greg ⁠Abbott is planning his summer holiday with half an eye on the ⁠Iran war. He intends to stay closer to home in Europe and is lining up a plan B, wary of rising air fares and cancellations.
The 54-year-old Britain-based Australian is planning a cycling trip with friends in Austria, a festival in Barcelona, Spain, and possibly a yoga retreat in France. But he does not want to go too far and is keeping travel options open.
“We’ll almost certainly be doing short-haul Europe, and almost certainly be doing trains, because they run on electricity,” says Abbott, head of ‌operations for a broadcasting company, adding that cost was a key factor against longer trips. “The prices are just crazy at the moment.”
Across Europe and beyond, tourists are reshaping plans in a world of US$100-a-barrel oil, tight jet fuel supply, higher costs and Middle East conflict disrupting popular routes. Many are booking later and building in flexibility.
“We observe travellers becoming more cautious and deliberate,” says Susanne Dickhardt, co-founder of Germany-based camper van and motorhome hire firm Roadsurfer.
Most are adapting rather than cancelling, she says, staying nearer home, driving and choosing formats that keep costs down.

Tourism and aviation are among the sectors most exposed to the war. Slow-moving peace talks point to a prolonged stand-off, hitting Gulf airlines and popular hubs such as Dubai, while nearly ⁠doubling jet fuel prices.
“You’ve got a war happening – a major war,” says Jean-Francois Rial, CEO of French tour operator Voyageurs du Monde.
His firm saw business drop around a quarter in March, easing ‌to about a 10 per cent decline in April.
“People get nervous,” he says. “They don’t want to travel any more.”
Last-minute bookings and shorter trips
Airlines warn that profits are under pressure. Air France-KLM expects its fuel bill to jump by US$2.4 billion in 2026, while Lufthansa and British Airways owner IAG see rises of about US$2 billion.
US low-cost carrier Spirit went bust ‌in early May, stoking fears others could follow. European budget carriers with thin margins and limited fuel hedging, such as Wizz Air and airBaltic, face challenges, though are less ⁠vulnerable than Spirit, says Rohit Kumar, Toronto-based vice-president ⁠of corporate ratings at investment research company Morningstar.
“Given that summer is the most profitable period for airlines, any disruption to volumes or costs during this peak season will have a material impact on earnings,” he says.
Travellers are delaying decisions. Jerome Vayr, president of France-based ‌Vacances Bleues, says plans are often made days before departure and trips are shorter.
“Last-minute bookings are rising significantly, by around 15 per cent,” he says. “I think people are waiting to see what will happen with inflation, waiting to see whether they’ll be able to ‌travel abroad.”
Demand ‌overall remains resilient, airlines and officials say, but destinations are shifting, with domestic travel gaining.
Ricardo Fernandez Flores, head of Spanish online travel agency Destinia, says Spain, Greece and Portugal are viewed as safer bets, ‌with more self-drive holidays.
“What we’re seeing in the data is not a slowdown in travel demand, but a shift in where travellers are choosing to go,” says Jay Wardle, New York-based president at travel data ⁠group Sojern, highlighting well-connected, stable Mediterranean markets.

Gabriel Escarrer, CEO of Spain’s largest hotel chain Melia, expects strong bookings in “safe-haven” regions.
“Spain and the Caribbean are far away enough from conflict zones and close ⁠enough to key source markets to offer a sort of safe-haven destination this summer,” he says.
Rail is gaining
Alvaro Ungurean, commercial director for Europe – International Train at Trip.com, reported a 25 per cent rise in Eurostar ticket sales, while nearly twice as many Britons are looking to travel by train in France in 2026.
Even business trips are shifting, with rail bookings ‌rising, says Charlie Sultan, president of Concur Travel at ‌German software maker SAP.
Hong Kong-based Alice Woodhouse plans to stay in Asia and offset soaring fares.
“With ticket prices so high, I’ve been looking at where I can use my airline miles,” she says. “Southeast Asia or maybe Taiwan is most likely.”
Others are delaying booking. Diego Dutra, who runs a corporate relocation firm from Portugal, is avoiding flying and may opt for a road trip instead of visiting family in Italy.
“We’re just going to postpone until things clear up a bit,” he says.


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Travel & Leisure

War in the Middle East and the rising cost of air travel and fuel have pushed many to plan shorter, more local and flexible holidays


War in the Middle East and the rising cost of air travel and fuel have pushed many to plan shorter, more local and flexible holidays.


Travel news and advice

US-Israel war on Iran

Greg Abbott

Trip.com

From Hong Kong to London, why travellers have a plan B lined up for summer 2026

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}War in the Middle East and the rising cost of air travel and fuel have pushed many to plan shorter, more local and flexible holidays

War in the Middle East and the rising cost of air travel and fuel have pushed many to plan shorter, more local and flexible holidays