UK travel industry reports a decline in early summer holiday bookings due to uncertainty from the Middle East conflict and rising living costs. Consumers are booking later, fearing higher airfares and delays from new EU entry regulations.
Key points
UK travel bookings down due to Middle East conflict and living costs
Consumers are booking holidays later in the year
Rising oil prices are increasing jet fuel costs
New EU entry/exit system causing delays at airports
Many flights remain operational despite concerns
Holiday bookings for early summer have been hit by uncertainty around the conflict in the Middle East and the rising cost of living, the travel industry has said.
Mark Tanzer, chief executive of the UK travel association Abta, said that while people still wanted to go on holiday, the industry was bracing for a difficult summer.
“There is evidence from our research that apprehension generally, and the rising cost of living here, are dampening early-season booking levels,” he said at the organisation’s annual Travel Matters conference in London.
Tanzer said the new EU entry/exit system (EES), which has triggered long delays at some big airports on the continent, could also hurt demand. The rules require passengers from non-EU countries to register their personal information and biometrics at the border.
“The rollout of the EU entry/exit system … is creating an unhelpful, and potentially damaging, backdrop for summer travel to EU destinations,” he said. “There clearly are some hotspots, and we urge destinations to use the contingency flexibility allowed under the regulation to suspend the biometric registration where queues are unacceptably long.”
Q&A
Why are summer holiday bookings down in the UK?
Summer holiday bookings are down due to apprehension from the Middle East conflict and the rising cost of living.
How is the conflict in the Middle East affecting travel costs?
The conflict has led to a rise in global oil prices, causing jet fuel costs to increase and potentially resulting in higher airfares.
What impact does the new EU entry/exit system have on travel?
The new EU entry/exit system has caused long delays at airports, which could negatively affect demand for travel.
Are flights being cancelled during the summer holiday season?
Despite concerns, a large number of flights have not been cancelled during the summer holiday season.
See every story in News — including breaking news and analysis.
Passport control gates at Venice airport
The new EU entry/exit system ‘is creating an unhelpful, and potentially damaging, backdrop for summer travel’, said Mark Tanzer, of Abta. Photograph: Davide Bonaldo/Sopa/LightRocket/Getty
In May, French police temporarily suspended the extra checks at the port of Dover. The Greek tourism minister, Olga Kefalogianni, told the BBC that Greece would suspend biometric checks for British travellers until September to prevent summer disruption.
Uku Särekanno, a director at Frontex, the European border and coastguard agency, said it could take “one or two years” for the EES to stabilise, as people went through the system for the first time and then in the future were able to go through a fast-track check.
The warning from Abta comes as airlines and holiday operators face an uncertain summer, the most important season for profits in the industry.
Shaun Morton, chief executive of the holiday operator On the Beach, also speaking at the Abta conference, said that while bookings had been coming in, shorter lead times “creates uncertainty and makes planning difficult”.
“We have a price-sensitive and uncertain consumer who was already booking on a later booking curve, who is now also concerned about coming out of this war – more inflation, fuel shortages and fuel surcharges,” he said.
However, he still expected the summer travel market to grow overall this year. “This late loop will eventually reverse when the conditions allow it to,” Morton said. “This is cyclical … where people do miss out on their holiday this year, I’m sure they will make sure they don’t miss out on it next year.”
Shares in On the Beach have fallen 30% this year, including a sharp drop last month, when the group warned that holidaymakers were booking later this year.
