The European tourism sector's plans are under constant pressure.
Latest research European Tourism Association (ETOA) It clearly shows that the consequences of the conflict are spilling far beyond the region's borders, directly affecting supply chains, operational costs, and the behaviour of global travellers. As many as 871 TP3T of the tourism companies surveyed in Europe are experiencing negative effects from this crisis, requiring swift adaptation and changes to sales strategies.
Operating pressure and market changes
Geopolitical tensions have led to a combination of reduced demand and rising costs., which directly erodes profit margins. Among the ETOA member companies surveyed, almost a third (32%) are facing a high level of impact that requires serious operational cuts and adjustments, while more than half (55%) are feeling moderate pressure. Only a small part of the sector, around 13%, is so far managing to escape without direct consequences.
Boss challenges faced by agencies and tour operators The issues encountered on the ground are a drop in demand, recorded by 681 TP3T entities, and a noticeable wave of arrangement cancellations among half of the respondents. Additionally, bookings have slowed dramatically, and travellers are taking longer to make decisions, which makes it difficult to plan revenue and fill capacity.
Impact on intercontinental and round-the-world travel
Long-haul travel segments and complex programmes involving visits to multiple countries have been most affected, particularly on routes that connecting Europe with Asian markets and Australia. Deviations in air traffic routes and instability have resulted in a surge in airfares and the introduction of additional fuel surcharges.
For many tour operators, this means that some arrangements have become commercially unviable. Rising transport costs are directly affecting 40% companies, and uncertainty over the final prices of services is making it difficult to assemble packages for the coming seasons. As a result, forecasts for the second half of 2026, as well as for the whole of 2027, are currently in question.
Financial risks and a return to stricter rules
Unlike at the start of the crisis when suppliers showed a high level of flexibility, the situation has since changed. Most hotels, carriers, and other partners in the chain have reverted to their standard, restrictive cancellation terms.
This puts European agencies and tour operators in an unenviable position as they remain financially exposed to non-refundable services. Air traffic disruptions or route changes are no longer automatically considered a valid reason for refunds, creating additional financial risk for travel organisers.
Turnaround in strategies until 2027
Faced with prolonged instability, tourism companies are being forced to reposition. The focus is rapidly shifting towards lower-risk products and destinations to reduce reliance on markets directly impacted by geopolitics.
This trend of portfolio restructuring will dominate the industry until at least 2027. Data from ETOA, collected from tour operators and DMC companies working in key emitting markets such as North America, Asia and the Pacific, suggests that flexible risk management and diversification of offerings will be key factors for survival in the coming period.
