Safety concerns dampen demand for Europe travel

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The Trevi Fountain in Rome. Globus' Steve Born said bookings to Europe softened at the beginning of March but have started to rebound somewhat.
The Trevi Fountain in Rome. Globus' Steve Born said bookings to Europe softened at the beginning of March but have started to rebound somewhat. Photo Credit: Sadman/Shutterstock

Typically, this is a busy time of year for travel advisor Cassie Bendel. But right now, clients are hesitant to travel. It's been what she calls a remarkable slowdown. 

Bendel, co-owner of Westwind Travel Service in Wheeling, W.Va., said her clients are hesitant to travel abroad this year due to the Iran war, increased oil prices affecting air travel costs and a general uneasiness, even for destinations far from the conflict. 

"It's the lack of the phone ringing," she said. "It's just a lack of bookings. Normally, we're extremely busy right now, and everything is so still and nothing's happening."

The Iran war is disrupting air travel, causing flight costs to spike due to increases in jet fuel prices. It's affecting Europe travel.

Typically, Bendel's clients travel to the U.K., Ireland, Italy and Greece, but the war is causing clients to question their safety in those locations. Clients scheduled to go to London in the coming weeks are coming down with a case of nerves, she said, while one who planned to go to Ireland on a group trip shifted her vacation to the Caribbean.

"The hesitation was to go to Europe," Bendel said of her Ireland cancellation.

But Bendel said some clients are reaching out -- just not for travel this year. Her 2027 book of business has remained strong, signaling a desire to travel but not right now. 

Brad Powell, founder and CEO of Wanderoso Travel Network in Las Cruces, N.M., said his business has declined 75% since the war began. 

"I've literally had zero clients approach me since the war started about any type of travel whatsoever," he said, despite this typically being his busiest time of year.

His clients scheduled to go to Europe are reaching out, concerned about their safety.

One is hesitant to go on a cruise to Italy, fearing "World War 3 is going to break out," he said.

"Plus the surging costs of fuel is creating uncertainty, and people are staying put to be on the safe side," he added.

In a Travel Weekly survey of 239 advisors in March, 84 took the opportunity to provide details about current issues, and 30% reported traveler concern due to the war and perceived safety threats. One advisor said she had only booked 35% of last year's March volume.

But traveler concerns haven't dampened bookings for Amanda Grant, founder of Vacation Life in Grand Rapids, Mich. Clients are booking holiday travel now to avoid any price surges because of rising oil costs, she said, though she said there was "a little bit more hesitation" than usual around European travel. She said she was fielding "more questions about security in Europe than ever before." 

What tour operators are saying

Tour operators are reporting a mixed bag. Intrepid Travel said although demand has softened, travelers are still flocking to Europe. 

Tauck is reporting strong demand for North America, as is the Globus family of brands, indicating that customers still have the travel bug but don't want to stray too far from home. Westwind's Bendel said she expects domestic travel to surge this year with her clients.  

Steve Born, Globus family of brands' chief marketing officer, said bookings to Europe softened at the beginning of March but have started to rebound somewhat. 

"We've seen the recent volatility in the S&P 500 play a significant role, as it continues to be a strong barometer for forward travel demand," he said. "Headlines around fuel prices and potential increases in air costs have also influenced traveler sentiment." 

Jeff Roy, chief revenue officer and executive vice president at Collette, reported that March bookings were flat year over year; the tour operator previously had been pacing double digits ahead of the prior year. Roy said it's no cause for concern this late into the booking season. 

Cancellations were minimal with most customers who had booked March travel, unless they were planning to visit or transit through the Middle East, he said. 

"That reinforces what we've seen historically: Once people commit to travel, they tend to follow through, especially when they feel supported and informed," he said.

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