While the Iran conflict is causing a rise in tourist cancellations and a dive in new bookings to destinations in the Eastern Mediterranean like Cyprus and to a lesser extent other countries whose economies rely heavily on summer visitors, prices for Easter holidays in Mallorca and Ibiza have risen.
The U.S. and Israel launched attacks on Iran on February 28, just as Cyprus’s tourism industry was reopening after winter. Then on March 2, as Iran launched a series of counter-strikes, a drone struck a British naval base on the island, triggering a wave of tourist cancellations.
According to TravelSupermarket the average price of a week to Ibiza has gone from £532 to £540 and a week to Mallorca would have cost £515.62 per person if booked a month or so ago, it is now £570.26, an increase of £53.64 each or £218 for a family of four all paying the full price.
Chris Webber, head of holidays and deals at TravelSupermarket, said: “Easter is one of the busiest times of year for family holidays, and prices naturally rise as departure dates get closer and availability starts to run out - that’s just supply and demand, not operators cashing in. It’s why we always tell families to compare prices early and book as soon as they find something they’re happy with.”
But, the UK now faces another pressing issue: the country will this week receive its last tanker of jet fuel from the Middle East, according to the Financial Times. Airlines could face a sharp increases in jet fuel costs following disruption to key oil supply routes in the Middle East - including some of the most popular and busy airlines such as Ryanair, Jet2 and Easyjet.