Travel experts are cautioning that holiday costs could rise if the Middle East conflict persists. The Foreign Office is advising against non-essential travel to several Middle Eastern countries, leading to flight cancellations. With jet fuel prices surging and a growing demand for safer destinations, experts anticipate an overall increase in travel expenses.
According to reports, the price of north-west European jet fuel has spiked to $1,500 per tonne post-air strikes on Iran, up from $830 per tonne. The duration of the conflict will determine the extent of the impact on holiday prices.
Independent travel specialist Jane Hawkes highlighted that escalating oil prices result in higher airline operating costs, subsequently affecting flight prices. Additionally, a shift in passenger demand towards perceived safer destinations can drive up costs in those locations.
Andrea Platania from Transfeero noted that rerouting flights from the Middle East is likely to contribute to higher prices. Longer routes burning more fuel and the volatility of jet fuel prices due to oil fluctuations are expected to be passed on to travelers through increased ticket prices.
Moreover, the costs of accommodations, car rentals, and activities might be influenced by heightened demand and potential fuel price hikes. Recent reports indicate a rise in petrol and diesel prices, further impacting travel expenses.
Ms. Platania suggested that while ‘safe’ destinations have not experienced significant price shifts yet, increased transportation costs and cautious booking behavior may lead to elevated room rates and travel package prices in the short term. Geopolitical risks affecting petrol and energy prices could affect various travel aspects from car rentals to tours.
Richard Young, CEO of selfcatering.co.uk, mentioned that staycation prices could also increase as travelers adopt a more risk-averse approach. Amid global uncertainty and soaring fuel costs, interest in self-catering breaks tends to rise due to their perceived advantages over overseas travel.
He highlighted potential popular staycation spots such as Yorkshire Dales, Norfolk, Northumberland, Devon, Cotswolds, Lake District, and Highland hotspots like Braemar, Fort William, and Inverness. This shift in travel behavior is reminiscent of past disruptions and highlights the appeal of domestic getaways during uncertain times.