The ongoing conflict between the US, Israel, and Iran has significantly disrupted the travel industry, with online travel agent Lastminute.com confirming that approximately 17,000 holiday bookings have been impacted. As geopolitical tensions escalate, travellers are increasingly pivoting towards alternative destinations such as the Canary Islands, Sardinia, and other European locations.
Geopolitical Unrest Forces Travel Adaptations
Lastminute.com, which specialises in packages to popular Gulf destinations including Dubai and Abu Dhabi, stated that it is having to "adapt quickly" to changing consumer preferences amid the unrest. The escalation of the war in late February led to substantial flight disruptions and cancellations for routes bound for Gulf states like the United Arab Emirates, Saudi Arabia, and Qatar.
Airspace closures, combined with a marked decline in consumer confidence regarding travel to the region, have contributed to this high number of affected bookings. The company noted that the total volume of travel impacted across the region currently equates to about a day and a half of its normal daily operations.
Shift in Travel Patterns and Consumer Behaviour
Despite the conflict influencing booking decisions, Lastminute.com emphasised that the "overall intent to travel remains high." Consumers are actively seeking reassurance and flexibility, with early booking patterns indicating a clear shift in traveller preferences.
Increased demand has been observed for alternative destinations, including Spanish archipelagos like the Canary and Balearic Islands, Italian islands such as Sicily and Sardinia, and various European city breaks. This rebalancing reflects a cautious yet persistent desire to holiday, albeit in perceived safer locations.
Company Response and Financial Outlook
Lastminute's chief executive, Alessandro Petazzi, commented: "We continue to closely monitor the evolving situation in the Middle East, with supporting our customers remaining our top priority. At the same time, Lastminute.com's flexible, pan-European model enables us to adapt quickly as travel patterns evolve, with demand naturally rebalancing across destinations."
The Netherlands-based company reported robust financial results, with a 15 per cent jump in revenues to €361 million (£315 million) for the 2025 financial year compared to the previous year. Adjusted earnings before tax and other costs increased by a third to €55 million (£48 million).
While remaining "vigilant" against the geopolitical situation in the Middle East, Lastminute.com is sticking to forecasts of a roughly 10 per cent increase in revenues and profits in the year ahead, indicating confidence in its ability to navigate the challenges posed by the conflict.
