Tui has revealed a 10% drop in UK summer bookings as consumers hesitate to make bookings and switch destinations, while the holiday firm took a 61 million euro (£39 million) hit from the Iran war and hurricanes in Jamaica .

Europe’s largest travel operator is one of several firms to be impacted by the conflict in the Middle East , which began at the end of February.

It said booked revenues for summer were down 7% compared with 2025 for its tours and airline, falling to 10% for the UK market alone.

The US and Israel’s war with Iran has led to a shift in demand from eastern to western Mediterranean destinations, while customers were displaying greater caution and making bookings closer to departure dates, Tui said.

The company also pointed to a “competitive” market for travel.

Nevertheless, Tui said it was expecting Spain , including the Balearics and the Canary Islands, and Greece to be top destinations over the summer.

The German business revealed last month that the Iran war cost it around 40 million…