Middle East conflict prompts quarter of consumers to pause holiday plans

The conflict in the Middle East is causing more UK consumers to put their holiday plans on hold this year, new research shows.

A survey of 2,000 consumers by tax firm RSM UK found that more than a quarter (27%) of consumers are not planning to take a holiday in the next 12 months – up from 19% before the Iran war broke out.

The top three holidays that have been paused are self-organised trips overseas (down 8%), cruise holidays and adventure tour holidays (both down 6%).

Furthermore, RSM UK’s Consumer Outlook found one in three (31%) of consumers have changed travel plans as a direct result of the current conflict in the Middle East – either cancelling the holiday completely, rescheduling or changing the destination. This jumps to 55% for Gen Z, 46% for millennials and 43% for families.

Nearly two in 10 changed plans due to travel disruption and safety concerns (15%) and increased costs (15%) cited as the main reasons.

A small percentage of holidaymakers (5%) have changed plans from an overseas holiday to a UK destination and this jumps to 8% for families.

Robyn Duffy, consumer markets senior analyst at RSM UK, said: “Rising tensions in the Middle East has forced some consumers to change or cancel travel plans this year.

“Initially thought to be a short-lived blip for international travel, the continued closure of the Strait of Hormuz has increased jet fuel prices amidst fears of scarcity, in turn pushing up airfares and squeezing demand for international travel.

“There is no doubt that consumer confidence has been rocked and that’s directly impacting travel plans for 2026.

“As a result, many consumers are opting for late bookings, deferring holidays altogether or opting for simpler, lower‑risk options closer to home.”

Chris Tate, partner and head of hotels at RSM UK, said: “We have already seen a slowdown in London occupancy due to ongoing disruption hitting international travel plans and this trend could continue across the UK if tensions persist.

“Staycations are seeing a slight uptick in interest, particularly from families looking for certainty and value.

“However, with costs still elevated across the sector, any uplift in staycations is unlikely to fully offset the broader slowdown in travel confidence.”