Mediterranean destinations and rail travel benefit as Iran war disrupts summer holiday plans

Travellers worried about costs and flights by the ongoing conflict in the Middle East are changing their summer holiday plans, with lastminute bookings, safer destinations such as Spain, and rail travel all growing in popularity. 

Jerome Vayr, President of France-based hotel group Vacances Bleues, said holidaymakers were increasingly making their plans days before they arrived.

"Last-minute bookings are rising significantly, by around 15%," he said. 

"I think people are waiting to see what will happen with inflation, waiting to see whether or not they'll be able to travel abroad." 

Tourism and aviation are among the sectors most exposed to the war between the U.S. and Iran. 

Gulf airlines and regional tourism hubs such as Dubai have been badly hit by the ongoing conflict. 

Airlines have faced flight suspensions, sharp increases in jet fuel costs and longer flight paths as pilots seek to avoid Iranian and Israeli airspace. 

European destinations seen as safe pick 

Jay Wardle, President at travel data group Sojern, said traditional European destinations were benefitting, as travellers opt for safer choices for their 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," he said. 

Gabriel Escarrer, CEO of Spain's largest hotel chain Meliá Hotels, likewise, said he expected strong bookings in regions further away from the fighting. 

"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 said.

Airlines have warned their profits are under pressure, particularly due to the rise in jet fuel prices.

Major European airline group Air France-KLM has said it expects its jet fuel bill to jump by $2.4 billion this year, while other dominant European carriers such as Lufthansa and British Airways have said they expect to see rises of about $2 billion.

U.S. low-cost carrier Spirit went bust this month, stoking fears others could follow

Rail's renaissance 

Meanwhile, rail is profiting from the uncertainty in the aviation industry. Alvaro Ungurean, Director of trainbooking platform Trainpal, has reported a 25% rise in Eurostar ticket sales, while nearly twice as many Britons are looking to travel by train in France this year.

Charlie Sultan, President of travel management tool Concur Travel at German software maker SAP, said even people on business trips were increasingly shifting from flights to trains. 

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Gregg Abott, 54, an Australian citizen living in Britain, is one of the travellers sticking to rail for his summer holiday. 

"We'll almost certainly be doing short-haul Europe, and almost certainly be doing trains, because they run on electricity," said Abbott, who is Head of Operations for a broadcasting company.

Abbot added that he didn't want to go far due to prices and was looking at European destinations, including Austria, Barcelona in Spain and France.

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