Australian Tour Operators Pivot From Europe and Middle East to Asia and Pacific

Australian tour operators reported sharp declines in bookings to Europe and the Middle East after the outbreak of war in the region in March. Falls of 75 to 80 per cent in the first few weeks were described by industry executives as standard given the uncertainty.

Travellers faced the surprise closure of Middle Eastern airspace, thousands of flight cancellations and questions over insurance coverage. The conflict prompted a wave of trip cancellations similar to those seen during COVID-19 border closures. One tour operator executive said the first weeks were tough, with many customers calling to ask whether they should proceed with planned trips.

The vast majority of those who cancelled sought credits for future tours rather than refunds. Two months on, cancellations have eased and customers are returning to book alternative destinations. Industry executives said travellers are changing where they want to go but have not stopped travelling.

Demand has shifted toward locations in South-East Asia, Japan and within Australia.

Last year 2.8 million Australians travelled to the United Arab Emirates and 1.78 million to Qatar, mainly as stopover points en route to Europe. This month 35 per cent of take-off and landing slots across 30 Middle Eastern airports, including those in Dubai, Abu Dhabi and Saudi Arabia, have been cancelled.

Customers who previously booked Europe trips involving Middle East transfers are instead choosing destinations closer to home. One company reported a 20 per cent jump in domestic tour demand, with increased bookings to the Northern Territory, the Kimberley in Western Australia and Cape York.