Southeast Asia Travel Sees More Cancellations as Gulf Routes Struggle

Travel businesses across Southeast Asia are growing more concerned about the second quarter of 2026 as the Iran war continues to disrupt flights and affect booking behavior.

A survey by ASEANTA and Pear Anderson found that nearly half of respondents now see their outlook as worse than they had expected.

The research covered 157 companies across Indonesia, the Philippines, Malaysia, Thailand, Singapore, Laos, Cambodia, and Myanmar between March 8 and March 18. It included travel agents, outbound tour operators, inbound operators, destination management companies, and accommodation providers.

The Middle East is a key bridge between Southeast Asia and Europe

The disruption is hitting Southeast Asia because many travelers flying to Europe connect through Gulf hubs such as Dubai, Doha, and Abu Dhabi. These airports play a major role in linking Asia and Europe, especially on one-stop routes used by leisure travelers and sold by travel agents.

Gulf airlines are still recovering slowly, with several major carriers operating below normal levels.

Cancellations are being caused by both disruption and traveler hesitation

Only 5.2 percent of surveyed companies said departures were continuing as normal. Others reported full cancellations, postponements, partial disruption, or route changes.

The most common reason was logistics, including cancelled flights and airport closures. That shows the impact is not only emotional or perception-based. In many cases, the transport system itself is not operating normally enough to support planned travel.

At the same time, traveler choice is also playing a major role. The survey found that client decisions were a much more common reason for cancellations than decisions taken by travel agents.

Some demand is moving to closer and simpler destinations

The survey suggests that many travelers are not abandoning travel completely. Instead, they are looking for places that feel easier and safer to reach.

Respondents said demand is likely to shift more toward Southeast Asia and East Asia, including destinations such as Thailand, Vietnam, Malaysia, Bali, Japan, South Korea, and China.

Fuel prices could become the bigger problem next

IATA said the global average jet fuel price rose 12.6 percent week over week to $197 per barrel. Higher fuel costs can quickly affect airline pricing, route decisions, and consumer demand.

As routes through the Gulf become less stable, the bigger question is how much longer higher fuel costs can be absorbed before they push fares up further and weaken travel demand more broadly.

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