UNCERTAINTY DRIVES TRAVELLERS TO MAKE LAST-MINUTE BOOKINGS

Ongoing uncertainty caused by the war involving Iran, combined with the high cost of living, is prompting tourists to wait until the last minute to book their holidays, according to TUI, one of Europe’s largest travel companies.

TUI said the conflict has so far cost the company around €60 million. Following the outbreak of the war involving Iran, the company recorded a temporary decline in demand among travellers considering destinations such as Cyprus and Turkey, describing the situation as a period of an “unstable market”.

TUI Chief Executive Sebastian Ebel told The Guardian that travel remains important to consumers, but the timing of holiday-booking decisions has changed.

“Wars and geopolitical tensions, consumer caution, economic weakness and rising inflation in key European markets are all factors affecting consumer sentiment and the timing of travel purchase decisions,” Ebel said.

Two TUI cruise ships were in the Persian Gulf when the conflict involving Iran began. The cost of repatriating passengers, combined with lost revenue, reached around €40 million.

“We had to bring back 5,000 passengers, which is a significant cost. And, of course, when a ship is not cruising, you have no revenue,” Ebel said.

The company’s underlying profit fell by 43 per cent between April and June, to €153 million, while the number of customers travelling with TUI declined by three per cent to just under 10 million, The Guardian reported.

TUI traditionally generates its strongest results between July and September. The company said demand for summer holidays has increased in recent weeks as the peak travel season gets underway.

Ebel also pointed to another factor increasingly influencing the tourism industry: extreme heat. According to him, hotel owners have been investing in air-conditioning systems not only in guest rooms but also in communal areas, including restaurants and spas.

Climate conditions are also changing the timing of holidays, with some travellers choosing to avoid the hottest part of the summer and instead travelling during months when temperatures are lower.

“It is important to create offers for November, December, February and March as well, because we see an opportunity there,” Ebel said.

The trend highlights a broader shift in European tourism, where geopolitical uncertainty, household budgets and changing climate conditions are increasingly influencing not only where people travel, but also when they decide to book and take their holidays.