The ongoing conflict in the Middle East has significantly disrupted the travel industry, with holiday website Lastminute.com reporting that approximately 17,000 bookings have been impacted. The company stated it is having to adapt rapidly to changing traveller preferences as the war escalates.
Flight Disruptions and Consumer Sentiment
The US-Israeli war with Iran, which intensified in late February, led to widespread flight cancellations and disruptions to Gulf states, including the United Arab Emirates, Saudi Arabia, and Qatar. Airspace closures, combined with a downturn in consumer confidence regarding travel, have directly affected these thousands of bookings.
Lastminute revealed that the total volume of affected travel in the region equates to about a day and a half of its normal daily operations. Despite this, the company emphasised that the overall intent to travel remains high among consumers, who are increasingly seeking reassurance and flexibility in their plans.
Shift Towards Alternative Destinations
Early booking patterns indicate a notable shift in traveller preferences, with increased demand for alternative destinations. Popular choices now include Spanish archipelagos such as the Canary and Balearic Islands, Italian islands like Sicily and Sardinia, and various European city breaks.
This rebalancing of demand reflects how geopolitical tensions are reshaping holiday plans, as tourists opt for perceived safer and more accessible locations amidst the conflict.
Company Response and Financial Outlook
Alessandro Petazzi, Chief Executive of Lastminute, 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."
Financially, the Netherlands-based company reported a 15% increase in revenues to 361 million euros (£315 million) for the 2025 financial year compared to the previous year. Adjusted earnings before tax and other costs rose by a third to 55 million euros (48 million).
Despite the challenges, Lastminute remains vigilant regarding the geopolitical situation but maintains its forecast of roughly a 10% increase in revenues and profits for the year ahead, highlighting resilience in the face of adversity.
