The business climate for travel agencies and tour operators continued to deteriorate in April. According to the Economic Research Institute, the Ifo industry indicator dropped to minus 43.5 points, marking a decline from season-adjusted minus 41.8 points reported in March. While companies assessed their current situation as notably worse than in March, their business expectations saw a slight improvement.
Patrick Höppner, an Ifo industry expert, noted that the Iranian conflict had significantly burdened the travel sector, particularly in March. On a positive note, he pointed to the lifting of travel warnings for key flight transit countries in the Middle East at the end of April.
However, more than half of the surveyed travel businesses reported that demand in April was weak. Höppner cautioned that if travelers remain hesitant due to the ongoing situation in Iran, bookings could be affected, especially for the end of the 2026 summer season and the 2026/27 winter season. Furthermore, ongoing discussions about potential fuel shortages starting in the summer could continue to cause uncertainty among travelers.
There has also been a slight increase in the proportion of travel companies anticipating rising prices in the coming months. Aviation fuel costs remain significantly higher than before the conflict escalated at the end of February, suggesting that holiday flights could become more expensive over the coming year.
Cost increases are also projected for road trips across Europe during Pentecost and the summer months, with fuel prices expected to be higher than the previous year. Data from the European Commission’s Weekly Oil Bulletin indicates that as of early May 2026, gas station prices for Super E5 (diesel) in Austria were approximately 20 percent higher than those recorded in early May 2025 (a 34 percent increase). Similar figures show prices in Italy are about 5 percent higher (29 percent increase), in France about 21 percent higher (39 percent increase), and in Croatia about 18 percent higher (32 percent increase).