Iran war creates new must-have for summer holidays: the plan B

Travelers are reshaping their summer plans amid rising airfares, Middle East conflict, and tight jet fuel supplies. Greg Abbott, a Britain-based Australian, is prioritizing short-haul trips within Europe, including cycling in Austria, a festival in Barcelona, and a yoga retreat in France, while avoiding long-haul flights due to cost and uncertainty. The Iran war and geopolitical tensions have disrupted popular routes, pushing travelers toward flexibility and last-minute bookings. Susanne Dickhardt of Roadsurfer notes a shift toward cautious planning, with tourists favoring trains, camper vans, and domestic destinations. Tour operator Voyageurs du Monde saw a 25% drop in March bookings, easing to a 10% decline in April, as travelers delay trips amid instability. Airlines face mounting pressure from soaring fuel costs, with Air France-KLM expecting a $2.4 billion increase, while Lufthansa and British Airways owner IAG anticipate $2 billion hikes. The collapse of U.S. low-cost carrier Spirit in May has heightened concerns about financial strain on budget airlines like Wizz Air and airBaltic, which have thinner margins. Demand remains strong but is shifting toward Mediterranean destinations like Spain, Greece, and Portugal, which are seen as safer alternatives. Spanish travel agency Destinia reports increased interest in self-drive holidays, while hotel chain Melia forecasts strong bookings in regions perceived as stable. Rail travel is also rising, with Eurostar ticket sales up 25% and more Britons opting for train trips to France. Travel agencies like Vacances Bleues are seeing a 15% rise in last-minute bookings, as travelers wait for clarity on inflation and conflict risks. Industry experts warn that any disruption during peak summer season could significantly impact airline profits, prompting a broader shift toward cost-effective and flexible travel options.