Despite the ongoing conflict in the Middle East and the resulting high fuel prices, Aussies still have an appetite for overseas adventure. Flights to Europe are still filling up, and right now, some Middle East-based airlines are offering return fares to Europe and the UK for bargain prices – under $2,000 in some cases.
This seems like a great deal, but are these cheap flights worth the risk right now?
The Australian Travel Industry Association (ATIA), the peak body for the nation’s travel industry, has cautioned Aussies to think carefully before booking flights, especially if they include stopovers in destinations that the government has classified as Level 4 (Do Not Travel) due to the conflict.
Why are some airlines cutting prices?
While it might seem strange that airlines are cutting ticket prices in the midst of a fuel crisis, ATIA CEO Dean Long tells Canstar that this is a strategic bid to keep customer numbers up.
"It comes down to confidence,” Long says. “As long as uncertainty persists, Middle Eastern carriers will continue to price aggressively to stimulate demand.”
For now, this play appears to be paying off. Long tells Canstar that flights to Europe, through the Middle East and other destinations, remain booked “at or near capacity.”
The current low prices are unlikely to stick around. “When the conflict concludes, we expect a fairly rapid correction,” Long adds. In other words, when oil is flowing more freely again, Middle East-based airlines will likely stop cutting prices.
If you plan on booking a trip, it pays to be cautious.
Travelers advised to heed government advice
While the prospect of a return flight to Europe for under $2,000 is tempting, Mr Long warns of the risks, especially if your flight includes a stopover in the Middle East.
“Our strong advice is to speak with an ATIA-accredited travel agent or tour operator, who can work through your options and make sure you're fully informed before you decide your travel plans,” Long says.
“Travellers do need to be clear-eyed about the Department of Foreign Affairs and Trading advisory,” he continues. “Do Not Travel means do not transit, and that has real consequences for travel insurance coverage.”
Travel warnings and insurance: what to know
The Australian Government has listed most of the Middle East region as a Level 4 (Do Not Travel) zone, and travelling to or through one of these zones can carry major risks. In terms of your insurance, there are some important things to keep in mind:
- War exclusions: Most standard policies do not cover claims arising from acts of war or civil unrest. If your trip is cancelled due to war or because the Australian government has updated a country’s status to ‘Do Not Travel’, your travel insurer might not pay out. However, the airline you booked flights with may still offer you a refund.
- Cancel For Any Reason (CFAR) travel insurance: This is an add-on option you can include with your travel insurance policy at the time of purchase. However, while the name implies you can cancel your trip for ‘any reason’ and get your money back, there are things CFAR won’t cover. These include war or unrest, terrorism incidents, military action, pandemic, epidemic and more.
- Pre-existing travel advisories: Insurance generally won't cover events that were already known when the policy was purchased. This includes war and countries with ‘Do Not Travel’ status.
If in doubt, read insurance policy documents in depth and reach out to your insurer for clarity on what you are covered for.
Should I cancel my travel plans?
If you already have a trip booked and are wondering whether to cancel, it’s wise to take a breath and consider your options, not least of all because you could end up losing out financially. Whether or not you should cancel your trip will depend on where you’re travelling, when you’re departing and your level of travel insurance cover.
Five questions to ask before you cancel
- Is your destination currently under a Do Not Travel advisory?
- Did you buy your insurance before the current escalation began?
- Is your flight still appearing as scheduled on the airline’s app or website?
- Can you pivot to a different region without losing my deposit?
- Is it cheaper for you to reschedule your flight rather than cancel your booking?
If you are unsure or questioning your upcoming travel, don’t immediately panic and cancel your flights or accommodation. Instead, contact your travel agent or travel insurer to see what can be done. Cancelling without contacting the relevant people is considered a ‘change of mind’, and doing this may mean that you don’t get any of your money back.
What should I do before my trip?
Whether your holiday is in a few weeks or a few months, there are a few things you should do to prepare.
- Check currency exchange rates: The unrest in the Middle East has already resulted in drastic changes to currencies around the world. Make sure you are aware of the currency exchange rates for your destination and how they may change.
- Stay alert: Frequently check with your airline, travel agent or travel insurance for any changes to your plans. Keep yourself notified of any major updates using the Smart Traveller website.
- Put safety measures in place: Make sure your friends and family know your itinerary and have reliable contact details. Ensure you know how to contact the Australian consulate in your destination as well.
