“What if I go there and what if I can’t go back?”
This is what Auckland travel agency owner Varjeet Chhabra said he’s hearing from customers, with the Middle East conflict scaring people away from booking flights overseas.
Last month, Chhabra’s company Singh Travel’s bookings dropped by 50% and revenue was down at least 30%.
But one of New Zealand’s leading corporate travel companies reported its business hadn’t dropped, while Consumer NZ warned Kiwis that travel was riskier.
Long-haul flights could be at threat if the fuel crisis continues, after Air New Zealand announced cuts to services in and out of some regional centres.
Air New Zealand has said its jet fuel bill has more than doubled due to the Middle East War.
With attacks in the Middle East, Chhabra said customers currently travelling had been calling in the middle of the night asking if their flight was operating, even if their flight path didn’t go near the war zone.
Wellington travel agency, MGM Trips & Travel, has halved booking inquiries since the conflict arose.
They used to get 20 to 25 inquiries a day, with about half of the customers going through with the bookings, said travel consultant Any Varkey.
Now, about 10 inquiries come in per day, none resulting in bookings.
Varkey didn’t feel she could reassure customers borders would not close and flights would not get cancelled, referencing similar uncertainty during the pandemic.
“We can’t advise them that this won’t happen,” she said.
The family-run business had advertised to hire two employees, however, took the listings down after coming to realise they would struggle to pay the salaries without commissions.
Consumer NZ head researcher Gemma Rasmussen said travel was “definitely riskier right now, and people need to understand that travel is not as straightforward as it has been in the past”.
“It’s understandable that right now things are feeling very fraught with international travel and we would really recommend that people consider what rights they have and what options they have before they book travel.”
She advised customers to take a look at their travel insurance policy, as results of war or military action are usually excluded from coverage.
“Don’t consider travel insurance to be your get out of jail card, because that is not necessarily going to help you out.”
However, she reassured customers with cancelled flights that airlines would usually act in good faith and look to put flyers on a different flight, though it may not be convenient.
Air New Zealand is one of many airlines avoiding the Middle East air zone, diverting flight paths.
“Airlines are never going to fly when there is imminent danger for travellers. So, they’re always going to be making decisions based on safety and trying to do the best thing for passengers.”
The Middle East was previously a major transit point for long-haul travel for New Zealand, particularly to Europe.
House of Travel chief executive David Coombes said consultants were having “longer, more detailed conversations with customers about their options”.
While family-owned travel agencies were experiencing declines for offshore bookings, Coombes said his customers were still travelling - just thinking carefully about how they did it.
Kiwis were choosing different carriers and routing through transit hubs they may not have before, Coombes said.
Asia has become the transit hub of choice during disruptions, Coombes said, with 71% of leisure bookings routing through Asia since the start of March compared to 60% this time last year.
Hong Kong, Singapore, Malaysia, South Korea and China were all experiencing higher transit numbers, Coombes said.
North America has also doubled as a routing option from last year, he said.
Orbit World Travel - which also has offices across New Zealand - reported they had not seen their clients “scaling back” travel plans.
Owner-operator Marc Bartram said forward bookings were actually up in March and “heading into April clients are not scaling back their travel plans”.
“We are working with businesses to make earlier decisions on bookings where itineraries may route through the Middle East, in line with their organisational risk policies as geopolitical uncertainty continues,” he said.
“We are also seeing more use of alternative long-haul routes via Australia, Asia, North America and in some cases South America to reach European markets.”
Bartram said airlines had been flexible with refunds, credits and changes which was “helping businesses make adjustments early”.
“Duty of care is increasingly important in this environment with real time risk monitoring, traveller tracking and 24/7 support giving companies visibility of where their people are and the confidence to keep them travelling safely.”
Sammy Carter is a journalist for the New Zealand Herald covering news in the Wellington region. She has previously worked at the Rotorua Daily Post.