LOS ANGELES — The Israel-Hamas war has had a negative impact on tour and cruise bookings and cancellations in neighboring Egypt and Jordan, according to vendors attending the USTOA Annual Conference and Marketplace.
Reservations are falling sharply and cancellations have surged, at least for the first quarter of next year.
“Quite frankly, the impact of the first quarter of 2024 has been very severe,” said Pamela Hoffee, president of Avalon Waterways, which offers charter Nile cruises. “In the first quarter of 2024, almost half of our guests canceled,” she said. “There was no significant impact on the rest of the year.”
Customers who cancel will lose their $250 deposit, Hoffee said. This isn't a huge loss for those who have travel insurance on that route, which includes a policy to cancel for any reason without making final payment.
Colette also experienced mass cancellations in Egypt and Jordan.
“For close departures, cancellation rates are in the 30 to 40 percent range,” said Jeff Roy, senior vice president of revenue management, pricing and worldwide operations at Collette.
Roy added that the war had a negative impact on travel bookings outside of Egypt and Jordan, leading to an overall slowdown in bookings in the fourth quarter. Roy said there has been a noticeable decline since October 7, when Hamas attacked Israel in an attempt to trigger the war.
“We’re seeing a lot of activity on the website, but the conversion rate is much lower now, so I think people are still shopping a lot,” Roy said.
Attendees at the USTOA Annual Conference and Marketplace in Los Angeles. Photo Credit: Nicole Edenedo
The war has not only affected reservations but has also increased concerns about terrorist attacks. Terrorist attacks have historically reduced bookings not only in the countries where they occurred, but sometimes entire regions, for months after the event.
Terrorism is the third biggest concern, according to USTOA's annual survey of its members. This time last year, it was at the bottom of my list of concerns.
Two of the biggest concerns for USTOA members are economic uncertainty and rising costs of living.
