Irish travel companies are facing a steep downturn in overseas holiday bookings, with some operators reporting declines of up to 25 per cent as consumer confidence weakens across Europe.
The slowdown comes despite repeated assurances from airlines that jet-fuel supplies remain stable and that widespread flight disruptions are unlikely. Industry figures say months of uncertainty surrounding fuel shortages and flight cancellations have already damaged consumer sentiment ahead of the peak summer season.
Paul Hackett, chief executive of online travel agency Click & Go, said concerns over fuel availability had been exaggerated, but warned the market had already suffered significant consequences.
“Fears about widespread flight cancellations and jet-fuel supply issues were overstated massively,” Hackett said. “Much of the damage has already been done.”
Hackett, who also serves on the board of the Irish Travel Agents Association, said the decline in demand was being mirrored across European markets.
“Prices are on the floor, but even those lower prices are not having the desired impact,” he said. “There is no impediment to booking, yet consumers remain hesitant.”
Travel industry representatives across Europe have reported similar trends following warnings earlier this year that the closure of the Strait of Hormuz during the Iran conflict could lead to jet-fuel rationing and disruption to flight schedules.
Airlines have responded by aggressively reducing fares on popular summer routes in an attempt to stimulate demand. Analysis of Google Flights data showed that prices for many Mediterranean destinations fell sharply between early April and early May.
Fares on 27 of the 50 busiest European summer routes declined during the period, with prices dropping by more than 10 per cent on 15 routes. Dublin-to-Malaga flights fell by approximately 15 per cent, while fares between Milan and Madrid plunged by as much as 44 per cent.
Despite the discounts, many travellers continue to delay booking holidays abroad.
Andrew Lobbenberg, an analyst at Barclays, described the situation as a battle to restore consumer confidence.
“Airlines and holiday companies are locked in a confidence game with consumers,” Lobbenberg said. “People are reluctant to book, they are booking late, and companies are having to incentivise them with lower prices.”
The uncertainty has also prompted some travellers to reconsider overseas trips altogether. Research by Ipsos found that one in five UK consumers had already switched from an international holiday to a domestic break this year, while another fifth were considering doing the same.
Meanwhile, Trivago chief executive Johannes Thomas said domestic tourism tends to benefit during periods of instability.
“In times of crisis, people stay more domestic,” Thomas said, although he noted the company had not yet seen a broader slowdown in overall UK travel bookings.
The pressure on airlines has intensified as carriers continue to adjust schedules in response to higher fuel costs and weaker demand. Industry data indicates that airlines worldwide have already removed around two million seats from May schedules, with some reductions aimed at protecting profitability and others reflecting softening passenger demand.
Turkish Airlines chair Murat Şeker compared the current climate to the uncertainty experienced during the pandemic.
“There is still a lack of visibility for the long term,” he said.
