Holidaymakers who had intended to travel to the eastern Mediterranean this summer are shifting their plans toward western Europe and the Caribbean, travel firms say, as the US‑Israel conflict with Iran disrupts the region.
Visitors from the United Kingdom and continental Europe are increasingly replacing trips to Cyprus, Turkey and Greece with holidays in Italy, Spain, Malta and Croatia, while the area surrounding the Middle East contends with flight cancellations and air‑space restrictions.
Tui, Europe’s largest tour operator, reported a sharp rise in recent demand for vacations in Spain, Portugal, Greece and Cape Verde, with customers favouring “well‑known, easily reachable destinations”.
“Although we are seeing some cancellations in the affected zones, they are currently outweighed by travellers who are adjusting their itineraries,” said Neil Swanson, a director at Tui.
Jonathon Woodall‑Johnston of Hays Travel – the agency that took over several former Thomas Cook high‑street outlets – added that interest is growing especially for trips to Italy, Malta and Croatia.
He noted that more people are also looking across the Atlantic for their summer break in an effort to avoid possible disruptions.
Swanson said: “We are observing particularly strong demand for our direct long‑haul services to the Caribbean, notably the Dominican Republic and Jamaica.”
Mark Duguid of Surrey‑based Kuoni said interest in the Caribbean was “off the charts” for journeys in the coming weeks.
“Everything has been squeezed,” he explained. “We have seen a huge rise in ticket prices because the remaining seats are limited – we are talking about increases of about £1,000 per economy seat, which pushes many holidays out of reach for customers.”
A week earlier, the cheapest round‑trip flight from London to Antigua and Barbuda for the last week of March was £720, according to Google price‑tracking data. That fare has since risen 27 % to £917.
The tourism sector is now beginning to assess the financial impact of the Middle‑East conflict.
Shares in On the Beach, the online holiday provider, dropped as much as 13 % on Thursday after the company suspended its annual profit forecast, citing the “unknown” duration and outcome of the war and its long‑term effect on travel. It told investors it had already felt a “significant slowdown” in bookings for destinations such as Turkey, Cyprus and Egypt.
On the Beach also reported a decline in reservations for Greece, where tourism underpins the national economy. Tui, however, said it had observed strong recent demand for Greek holidays.
Shares of other travel operators have fallen since the US‑Israel strike on Iran, with easyJet and Jet2 down 16 % and 10 % respectively.
The rival online agency Loveholidays, which had been expected to become the London Stock Exchange’s first major listing of 2026, is now reportedly preparing to postpone its flotation.
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