SCHIPHOL – TUI Group says many travelers are waiting longer before booking their summer vacations this year because of uncertainty linked to the war in the Middle East.
According to the travel company, approximately 45 percent of travelers have still not booked their summer holidays, making hotels and resorts less fully booked than during the same period last year.
TUI reports that the geopolitical tensions and uncertainty surrounding the conflict are making consumers more cautious about travel plans and spending decisions.
At the same time, the company is seeing stronger demand for destinations in the western Mediterranean region.
According to TUI, Spain and Greece are expected to become the most popular vacation destinations this summer.
The company’s cruise operations were also affected by the conflict.
Two TUI cruise ships remained stranded in the Persian Gulf until mid-April, negatively affecting occupancy levels within the cruise division.
Outside those disruptions, however, TUI said its cruise ships operated at approximately 98 percent occupancy.
The war also generated around 40 million euros in additional costs for the company, mainly because of sharply rising fuel prices linked to the blockade and instability surrounding the Strait of Hormuz.
Despite those challenges, TUI reported that its quarterly loss came in nearly 20 million euros lower than expected, totaling just over 188 million euros.
The travel industry worldwide continues to monitor the geopolitical situation closely because fuel prices, air traffic, maritime transport, and consumer confidence remain highly sensitive to developments in the Middle East.