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Europe’s Travel Slump Deepens After Iran Conflict Escalation

Flexible cancellation offers signal a push to steady demand after a sharp drop in new bookings.

Overview

  • Germany’s Foreign Office, which on Tuesday still had no general travel warning for Turkey, advises against non‑essential trips to several southeastern border provinces after March missile interceptions.
  • New bookings fell in early March, with researcher TDA reporting a 16% year‑on‑year drop in the second week as travelers shifted toward destinations farther west in the Mediterranean and beyond.
  • Operators in eastern and southeastern Turkey say business has largely collapsed and they are processing cancellations and deposit refunds, while resorts such as Antalya, Bodrum and Istanbul report stable reservations.
  • Austria’s hotel sector reports cancellations from guests from the Middle East, Israel and the Far East, hitting Vienna, Salzburg and Tyrol and falling hardest on luxury hotels in hotspots like Zell am See.
  • Travel companies introduced broader “Flex” options for fee‑free changes or cancellations and short‑notice prices rose for substitutes, with Holidaycheck finding late‑booked Gran Canaria packages cost 22% more than in February.