Middle East Crisis: Impact on European Tourism Businesses
In early May 2026, we conducted a survey of our tour operator members to assess the impact of the ongoing Middle East crisis on European tourism businesses. The survey, which ran from 1–8 May, gathered responses primarily from tour operators, agents, and destination management companies selling to international markets, particularly North America, Australia/New Zealand, Europe, and Asia.
The findings show that disruption is now widespread across the sector. Over half of respondents report a moderate impact on their business, while almost one‑third are experiencing a high impact, requiring significant operational changes. Only a small minority report little or no effect to date. The most commonly cited challenge is reduced demand, alongside increased cancellations, later booking behaviour, and heightened price uncertainty.
Flight disruption and restricted airspace have had a particularly severe effect on long‑haul and multi‑country itineraries, especially those involving Asia–Europe and Australian travel flows. Rising airfares, fuel surcharges, and transport costs are eroding margins and, in some cases, making programmes commercially unviable. Many businesses are also carrying financial exposure from non‑refundable services and limited supplier flexibility.
While some suppliers initially offered goodwill and more flexible terms, many respondents report that standard cancellation and refund conditions have largely been reinstated. Public sector attractions and transportation companies were reported as initially less flexible than other suppliers regarding refunds and rebooking, though a trend towards standard terms and conditions across the board was reported.
To manage the impact, operators have increased booking and cancellation flexibility for customers, offered postponements into later 2026 or 2027, adjusted pricing, rerouted flights, and reduced capacity exposure. However, these measures often involve absorbing additional cost and risk.
Looking ahead, businesses remain most concerned about demand uncertainty, margin pressure, customer confidence, and ongoing operational disruption. Many expect to rationalise their offer, prioritising lower‑risk programmes, improving internal efficiency, and adapting to changing market conditions as uncertainty continues into 2027.