Travel agents see bookings plummet amid Middle East tensions and rising fares
Melburnians are postponing their plans for the European summer as jet fuel prices hit record levels and popular flight routes in the Middle East remain no-go zones.
Local travel agents say new bookings have fallen to lows last seen in times of COVID, as the war in the Middle East drags on and the bombing of Gulf cities, which account for about 50 per cent of stopovers on long-haul flights between Australia and Europe.
Iran’s blockade of shipping lanes in the critical Strait of Hormuz has also contributed to the near doubling of the price of aviation fuel, which some airlines have begun to pass on to customers by increasing fuel surcharges.
Agents say those determined to travel in Europe face economic fees of up to $6,000 on return and are turning to Chinese carriers flying over Russian airspace at never-before-seen figures.
Nigel Walliss, director of Balwyn-based Travelrite International, said people were cautious about making new travel plans, while those with existing bookings were anxious to avoid the Middle East.
“We’re in the eye of a storm right now and we’ve been pretty quiet in terms of new demand, but obviously we’re busy making changes for customers,” Walliss said.
“Traditionally it is a busy time of year when people plan their European summer holidays. There has been a significant reduction in demand and bookings.”
Walliss said the agency expects demand to rebound strongly once the conflict in the Middle East is resolved.
An independent travel agent in Melbourne’s eastern suburbs, who asked not to be named, said he had completely sold out of overseas bookings.
“We haven’t really received any new bookings in a few weeks,” the representative said. “Everyone says the fees are ridiculous and of course the cost of living is going up and so are the interest rates. So we’re just overhauling things, we’re not actually booking anything new. For us as agents, this is exactly like COVID.”
The average price of jet fuel nearly doubled in the two-week period between Feb. 27 and March 13, reaching $175 per barrel, according to the International Air Transport Association. Long-term data of the union shows that prices have reached record levels.
Airlines began increasing fuel surcharges in response.
A spokesperson for Virgin Australia said aviation costs were rising and this was “significantly worsened by the situation in the Middle East”. “We are making the necessary fee adjustments to reflect these cost pressures,” the spokesman said.
Qantas, which had already raised its fares for international travel earlier this month due to “volatility in jet fuel prices” caused by conflict in the Middle East, said it would review its international fares every two weeks, according to a statement from the company.
The International Air Transport Association says airlines typically spend almost 30 percent of their operating budgets on fuel.
North Fitzroy travel agent Emma Whiting said it was still possible to find an affordable ticket to Europe if the customer was prepared to be flexible.
Economy return fares to Europe retail for anywhere from $2000 to $6000, depending on routes and airlines.
“People are obviously trying to get to things more directly. So once you start doing that, yeah, you’re probably going to pay more.”
“But actually if you’re a little more flexible and can change dates and things like that, you’ll probably still be able to get a reasonable price there,” Whiting said.
Australian Travel Industry Association chief executive Dean Long said surveys of travel agents showed most travelers were changing travel plans rather than canceling trips outright.
The number of weekly flights from Australia to the Middle East has been reduced from 150 to around 50; Emirates was the only airline to offer commercial flights to the Gulf.
The Australian government has advised against travel to most Middle Eastern countries.
Long said the cost of long-haul flights to Europe was rising rapidly, but Australians’ enthusiasm for overseas travel meant many were heading elsewhere, such as Asia.
“There is no decline in sentiment towards travel in general. Destinations are changing, but they are always changing,” he said.
Jetstar and Flight Center have been contacted for comment.
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Adam Carey is senior urban reporter (suburban). He has held previous roles including education editor, state political correspondent and transportation reporter. He joined The Age in 2007.Connect with: X or email.
