One the UK’s biggest tour operators has suspended its profit guidance after revealing impact of Middle East war on bookings
On the Beach says Egypt is among the normally popular destinations where demand has been hit(Image: Getty Images)
Spooked Brits are putting their holiday plans on hold because of the Middle East crisis.
Leading holiday firm On the Beach revealed a “significant” drop in demand from British families to Turkey, Greece, Cyprus, and Egypt. “The timing of when the conflict will end and the shape of recovery in demand to these destinations are unknown,” it said.
At the same time, there are are warnings that the cost of a summer getaways could jump after a spike in jet fuel prices. It comes as many UK families would be booking sunshine trips for the Easter holidays.
The scale of the hit to bookings was enough for On the Beach to suspend its full year profit guidance. Boss Shaun Morton said: “Following the onset of the conflict in the Middle East, our operational teams have been working round the clock to support directly impacted customers in resort and to enable a return home as soon as possible.”
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The fall-out from the Iran war has already seen fuel prices jump and the cost of fixed rate mortgages rise. Industry experts Moneyfacts said the average two-year fixed rate mortgage had risen again, from 5.01% 5.04%. The average five-year fixed deal went up from 5.09% to 5.13%.
It came as oil prices remained at around $100 on Thursday – as two tankers were ablaze in Iraqi waters after what appeared to be Iranian strikes.
The latest wave of attacks on oil and transport facilities across the Middle East came as Iran warned the world should be ready for oil to hit $200 a barrel.
The conflict has spread across the region and prompted the International Energy Agency to recommended releasing 400 million barrels from reserves to dampen one of the worst oil shocks since the 1970s, the biggest such intervention in history.
Iran has made clear it intends to impose a prolonged economic shock.
Oil prices, which shot up earlier in the week to nearly $120 a barrel before retreating, jumped almost 10% back above $100 amid renewed fears about supply disruption.
Iranian explosive-laden boats appear to have attacked two fuel tankers in Iraqi waters setting them ablaze and killing one crew member.
Chris Beauchamp, chief market analyst at IG, said: “Overnight attacks on shipping off Iran are the stuff of nightmares for investors, confirming that one of the world’s key waterways is closed to shipping and resulting in a fresh surge in oil prices.”
US President Donald Trump claimed the IEA decision “will substantially reduce oil prices as we end this threat to America and the world.”
So far there has been no sign that ships can safely sail through the Strait of Hormuz, the now-blockaded channel along the Iranian coast that serves as a conduit for around a fifth of the world’s oil.
An Iranian military spokesperson said the Strait was “undoubtedly” under Iran’s control.