Iran war and high living costs fuelling last-minute holiday bookings, Tui says
Middle East conflict has cost Europe’s largest travel firm €60m so far, and timing of decisions over trips has shifted Holidaymakers are waiting until the last minute to book their trips because of the continuing uncertainty caused by the war in Iran and the cost of living crisis, according to Tui , Europe’s largest travel company, which said the war had cost it €60m (£51m) so far. In the weeks…
Europe's largest travel firm, Tui, is experiencing a surge in last-minute holiday bookings due to the ongoing war in Iran and the high cost of living, according to the company's CEO. The conflict has resulted in a €60m loss for Tui, which also led to a temporary drop in interest from potential travelers to Cyprus or Turkey. Tui's chief executive, Sebastian Ebel, explained that the timing of travel decisions has shifted due to various factors like wars, geopolitical tensions, consumer caution, and rising inflation in Europe's core markets.
Two of Tui's cruise ships were unable to continue their journeys through the Gulf due to the war, leading to €40m in additional costs. The company reported a 43% decline in pre-tax profits in the second quarter, with a 3% decrease in customers. However, demand for summer holidays has recently picked up, despite the ongoing heatwaves in Western Europe.
Tui is now promoting travel during the "shoulder season" months of March, May, September, and November, as cooler temperatures can be more appealing to holidaymakers. Hotel owners have been investing in both cooling and heating systems to cater to these changing climate preferences.
Written by urgent.news from Guardian Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
