Planning an Easter Getaway? Expert Warns Middle East Disruption May Raise Prices
People planning an Easter getaway abroad are being cautioned to budget more this year, with higher prices possible to hit holiday costs regardless of destination.
Rising tensions in the Middle East can have a knock-on effect on holiday costs, even if you’re travelling somewhere completely different. But this isn’t a new phenomenon. We’ve seen similar patterns during previous periods of geopolitical instability, where travellers change their plans and demand shifts toward destinations perceived as safer.
Airlines can face higher operating costs during periods of geopolitical instability. If flights need to avoid certain airspaces, routes can become longer. At the same time, global oil prices usually rise during conflicts in major energy-producing regions, and that can eventually feed through into the price for fuel. For travellers, that might mean more expensive plane tickets.
There’s also the potential impact on taking holidays, especially to destinations closer to home. If some holidaymakers decide not to travel as far afield, demand for popular destinations such as coastal towns, national parks and major cities can increase. When that happens, accommodation prices often rise during peak periods, particularly if availability is limited.
When travel feels more uncertain making sure you have the right level of cover for your trip becomes even more important, so you are less likely to face unexpected costs. Booking early, staying flexible with travel dates, comparing travel insurance policies and prices for flights can make a noticeable difference to the overall cost of a trip.
Most standard travel insurance policies don’t cover acts of war, so conflicts itself may not typically have a direct impact on premiums. However, travellers should always check their policy details carefully, so they understand exactly what is and isn’t covered. Consider getting a policy that offers additional cover for travel disruptions which can offer another layer of protection in situations where official government travel advice changes and costs can’t be recovered elsewhere. It’s also worth noting that travel insurance does not cover events that are already known at the time the policy is purchased.
Keeping an eye on exchange rates and fuel prices can also help holidaymakers budget more accurately and avoid unexpected costs closer to their trip.
Written by Hannah Mayfield, travel money expert working with specialist travel insurance company PayingTooMuch
Hannah is a qualified financial advisor, with a diploma for financial advisers from the London Institute of Banking and Finance. Her expertise is in personal finance and understanding people’s financial habits and needs. Hannah is now PayingTooMuch’s money expert.
