Airline Raised Flight Price From $4,000 to $28,000, as War Hits Travel Budgets

Airline Raised Flight Price From $4,000 to $28,000, as War Hits Travel Budgets

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https://www.fodors.com/news/news/airline-raised-flight-price-from-4-000-to-28-000-as-war-hits-travel-budgets


Airfares are climbing worldwide as oil prices surge amid Middle East conflict.



Flight prices are soaring as oil costs skyrocket. Hong Kong-based carrier Cathay Pacific is selling a business-class round-trip ticket from Sydney to London for $25,000 in April, far exceeding its usual price of $4,000-$5,000. Meanwhile, other airlines in the Asia-Pacific region have also raised prices as the war in the Middle East continues.

This week, Air New Zealand increased prices on domestic and international routes. Travelers will now pay NZ$10 ($6) more for one-way domestic trips, NZ$20 ($11) extra for short-haul international itineraries, and NZ$90 ($54) more for long-haul flights. Australian airline Qantas, which does not operate flights to the Middle East, has also increased ticket prices on international routes because of rising oil costs. Its flights to Europe have seen a sharp increase in prices amid higher-than-usual demand as passengers scramble to find seats after cancellations. Scandinavian airline SAS has also made a “temporary price adjustment.”

No airline in the United States has announced an increase yet, but budget airlines are expected to feel the impact the most.

Prices Will Rise

Emirates, Qatar Airways, and Etihad account for one-third of passenger traffic between Europe and Asia. These flights are largely off the table for now. Passengers should be wary of booking with them even if prices initially appear cheap. Travelers will also see many routes scrapped. Airlines have halted flights to the Middle East, and with fewer options and limited capacity, travelers will likely pay much more to fly.

Meanwhile, airlines will play Tetris to avoid the multitude of closed airspace, which will require more fuel. With airspace squeezed, airlines must run longer routes or find alternate airports. Qantas, for example, has stopped its 17½-hour nonstop flight from Perth to London. It will now stop in Singapore for refueling while bypassing closed airspace.

Airlines are also losing money on canceled and disrupted flights. They have scrapped flights to the Middle East and its connecting hubs and are offering refunds to passengers. With longer routes, airlines may need to pay overtime to crews or add additional stops. All of this adds up and could affect airlines’ bottom lines this year. These losses are often passed on to customers, so travelers should brace for higher prices.

Game of Oil

The Strait of Hormuz has effectively closed since the war began. This narrow waterway transports about 20% of the world’s oil and is one of the most critical oil chokepoints. Iran controls the strait and has warned it would attack vessels attempting to pass through it.

Predictably, oil prices rose sharply after the war began. Prices reached $120 a barrel before dropping to $80 after President Trump announced the war might soon end. Even so, prices remain much higher than before the conflict, when oil traded at about $60 a barrel. In the United States, gas prices have climbed to about $3.50 a gallon from less than $3 before the war. Drivers and fliers alike will feel the financial strain this year due to the instability.

Fuel is the second-largest cost for airlines after labor. Globally, airlines practice something called hedging, securing jet fuel at a fixed price for future use to mitigate risks from market volatility. Major airlines in the United States, however, largely abandoned this practice a decade ago because it did not save them much in the long term. Southwest was the last to scrap it last year.

According to recent estimates, these price increases will cost four U.S. airlines—American, Delta, United, and Southwest—an additional $11 billion for jet fuel. United CEO Scott Kirby said passengers will see the impact on ticket prices very quickly.

Similarly, Asian airlines are vulnerable to a volatile market without extensive hedging and could face financial losses if the war continues. European airlines—including Ryanair, Lufthansa, and British Airways—have hedged their purchases heavily and may be better positioned to absorb the shock.


With Soaring Oil Prices, Should You Buy Airline Tickets Now or Wait?

Ake Ngiamsanguan/iStock
https://www.fodors.com/news/news/with-soaring-oil-prices-should-you-buy-airline-tickets-now-or-wait


Oil prices are rising amid global conflict, but will airfares increase too? Here’s how airline pricing works—and why demand, not just fuel costs, drives ticket prices.


The timeline cost of a barrel of oil looks like a game of Pong these days. Around $70 before the Iran conflict began, the price has seesawed up to $120 and down to $90 over the past week. In either case, the price of oil is higher, which drives the price of jet fuel higher, and jet fuel is the airlines’ largest expense after labor.

American carriers have not yet announced an across-the-board fare increase, but it’s also worth noting that airlines are more surgical about pricing than they used to be. With sophisticated inventory management systems, they can limit the availability of lower fares on each flight without cancelling or raising the fares outright. The result is more onboard revenue, without any apparent change in fares (tracking the fare on a single flight using a service like Google Flights isn’t the most accurate barometer of industry-wide trends).

How Airline Pricing Works

Airline pricing is also speculative, meaning airlines are selling seats before they know how much it will cost them to fly, so airlines are always selling their inventory with the same objective: to maximize the revenue onboard the aircraft—regardless of costs. But airline seats are a limited commodity with a set expiration date. Once an aircraft departs, the opportunity for unsold seats is gone forever. Because of this, the major driver in airline pricing is demand, both currently and for the period remaining before the flight departs.

Because of this, demand rather than cost drives how airlines price flights, but it’s also worth noting that the closure of Middle East airspace has knock-on effects around the world. Some airlines, including Qantas and Air New Zealand, have announced price hikes, but the effects on seat availability are the real issue.

With large global hubs in Dubai and Qatar largely offline for the time being (only a limited number of repatriation flights are being offered), passengers traveling on a number of international channels are now looking for alternatives. Passengers traveling between Europe and Australia or New Zealand, for example, have long connected in Qatar or Dubai. The closure of those two hubs is forcing passengers on that channel to look elsewhere, including flights via the United States. That means fewer seats for sale on flights outside the Middle East, including flights between Oceania and the U.S., and onward from the U.S. to Europe. That means fewer seats for sale on those flights, which helps drive fares higher, even though both flights are nowhere near the conflict zone.

Airlines can also increase revenues without increasing fares. Airlines that charge for seat assignments often don’t have set amounts they charge for seats (the fee changes based on demand; a practice called “dynamic pricing”) so they can also sneak price increases in there. Airlines can also slightly boost first and business class fares, which are already higher (and their buyers are less price-sensitive) so minor increases are less conspicuous.

But all that assumes demand for air travel remains healthy. If flyers stop flying, the situation changes. During the pandemic, there were two schools of thought among airlines: some chose to keep fares lower, hoping they could stimulate some demand with an attractive price point, while other airlines assumed demand was more fixed, and that the remaining pool of buyers needed to go, and would pay more—and feel safer on an emptier aircraft.
Should You Book Now or Hope for Prices to Come Down?

Travelers unsure about whether to book now to lock in existing fares or wait to see if fares drop don’t have much to go on beyond blind luck. The unknown x-factor is how long the conflict will drag out, and whether the markets’ current concerns about the availability of crude oil will ultimately restrict supply enough to create a lasting price increase in fuel costs.

Flyers buying basic economy fares are locked in—they can’t change their tickets, not even to take advantage of a fare drop (although federal law requires airlines to fully refund ticket purchases regardless of fare type within 24 hours of purchase, with some exceptions). Nonrefundable discounted tickets that are not basic economy tickets can generally be cancelled or exchanged for credit if the traveler elects not to fly on the original dates, or if the fare goes down after purchase. And, of course, refundable fares provide refunds for passengers who cancel or rebook at a lower fare.

Rules vary by airline (airlines outside the U.S. are less likely to offer credits if fares go down after purchase), so be sure to read the fine print before buying the ticket.

New U.S. visa requirements could threaten international tourism: How to get it right

https://hotelsmag.com/news/the-u-s-wants-to-tighten-its-border-control-is-international-tourism-at-crossroads/
This story was contributed by Chekitan S. Dev, professor at Cornell University’s Nolan School of Hotel Administration in the SC Johnson College of Business and a 47-year veteran of the tourism industry.


The United States is rethinking what it means to be an “easy” destination for international visitors. U.S. Customs and Border Protection (CBP) has proposed expanding the information collected from travelers, which would require citizens of 42 allied nations to disclose extensive personal data under the Visa Waiver program, including five years of social history, 10 years of contact information, as well as detailed family information and biometric data, such as facial recognition, fingerprints and DNA, to visit the country.

The policy direction is clear: In a digital world, governments increasingly see online footprints as part of risk assessment. The travel industry, however, must ask a bigger question: Does expanded digital vetting threaten U.S. tourism—or could it strengthen it?

Tourism Tradeoff

International tourism has long been a double-edged sword.

On the positive side, inbound visitors inject billions into local economies—airlines, hotels, restaurants, attractions, retailers and the broader supplier network that benefits from tourism’s multiplier effect. Beyond economics, tourism fuels cultural exchange, soft power and global goodwill. Visitors return home with stories, experiences and perceptions that shape how nations are viewed abroad.

But tourism also imposes costs. Overtourism strains infrastructure and housing markets. Visitors generate waste and environmental pressure. In rare cases, they misbehave, damage property, engage in criminal conduct, overstay visas or work illegally. These realities feed political backlash and public concern.

Policymakers are always balancing openness with order. The difference today is that risk signals increasingly live online. Social media posts, affiliations and digital histories are seen by some officials as indicators of intent. That has moved digital screening from a peripheral idea to a central policy tool.

The Friction Question

For the travel industry, the issue is not simply whether screening exists: It’s how it affects perceived friction.

Travelers weigh destinations not just on price and attractions, but on predictability, ease and dignity. Even small increases in paperwork or uncertainty can shift demand—especially for high-value segments such as business travelers, conference delegates, affluent leisure travelers and families. These travelers often have multiple substitute destinations.

If social media disclosure feels invasive, subjective or opaque, it could raise what economists call the “hassle cost” of travel. Perception matters. Tourism demand is emotional as well as economic. Visitors want to feel welcomed—not scrutinized.

That said, most travelers also value safety. They prefer destinations that are orderly and well-managed. A credible, risk-based screening system can reduce incidents that damage a destination’s reputation and degrade the visitor experience.

The question is not whether to screen—but how.

“Quality Over Quantity” Isn’t New

Supporters of expanded vetting often frame it as a move from mass tourism toward more selective, higher-quality visitation. That logic is not inherently misguided. Many destinations have adopted policies to shape flows and protect quality of life: peak-period visitor fees, capacity limits, tighter screening for sensitive regions and stronger enforcement against misconduct.

However, most of those tools are transparent and predictable. Pay a fee. Follow capacity limits. Respect the rules.

Social media review is different. It introduces subjectivity and uncertainty. Travelers may worry about how their posts—taken out of context—could be interpreted. Even if those fears are exaggerated, the perception of unpredictability can deter visits.

A “quality over quantity” strategy only works if travelers perceive the system as fair and proportionate.

The Border is the Brand

In hospitality, we often say the experience begins before arrival. For countries, the visa process—and the border encounter itself—are part of the tourism brand.

The United States faces a brand challenge. For decades, its appeal has combined iconic attractions with an ethos of openness and opportunity. If travelers increasingly associate the U.S. with friction and surveillance, that brand equity may weaken—particularly as global competition for international visitors intensifies.

At the same time, mega events, such as the 2026 FIFA World Cup, heighten security sensitivities. Screening that deters known bad actors—such as organized hooligan groups—could reassure mainstream travelers. Safety enhances value.

The critical question becomes whether the U.S. can deliver both security and hospitality.

Three Principles for Getting It Right

If expanded digital vetting is to become an opportunity rather than a threat, three principles matter.

  1. Transparency
    Clarity about what is collected—and what is not—reduces fear. If policies focus on publicly available information or identifiers rather than private content, that distinction should be communicated clearly. Ambiguity erodes trust.
  2. Frictionless Design
    Every additional step increases abandonment risk. If social media identifiers become mandatory in visa or other processes, forms must remain streamlined, mobile-friendly and consistent. Efficiency is part of the brand.
  3. Pair Vetting with Welcome.
    Security and hospitality are not opposites; they are sequential. Screen carefully, then welcome warmly. A professional, respectful border experience signals confidence rather than suspicion. Tone matters.

Countries that successfully balance tourism growth with border control often coordinate closely between tourism authorities and immigration agencies. When these functions operate in silos, policy can unintentionally undermine brand strategy. When aligned, security measures can coexist with a compelling welcome.

The United States remains one of the most compelling destinations on earth. The challenge now is to ensure that digital vetting supports—rather than undermines—that appeal. If policymakers treat border processes as part of the tourism brand, not separate from it, expanded screening could reinforce both safety and brand strength.


Hyatt announces plans for a Hyatt Ziva resort in Punta Cana

https://hotelsmag.com/news/hyatt-announces-plans-for-a-hyatt-ziva-resort-in-punta-cana/?


Hyatt Hotels Corp. has entered into a management agreement with Codelpa to develop Hyatt Ziva Punta Cana, a new all-inclusive resort in the Dominican Republic scheduled to open in 2029.

The new-build resort will feature 650 guestrooms including an adults-only building along with family-oriented amenities. The property will be located about 40 minutes from Punta Cana International Airport.

“We are thrilled to expand our portfolio with Hyatt with plans for Hyatt Ziva Punta Cana,” said Alvaro Peña, president of Codelpa. “Following the successful debut of Secrets Tides Punta Cana we look forward to expanding the Hyatt Ziva brand in Punta Cana complementing Hyatt’s growing brand presence in the region and offering a family-friendly experience on the destination’s white sand beaches.”

The resort is expected to include five specialty restaurants and a buffet serving international cuisine along with a snack bar coffee parlor ice cream venue and a beach club offering food and drinks. Six bars will serve international and domestic spirits while a juice bar will be located at the spa.

“Wellbeing” amenities are planned to include a fitness center yoga studio outdoor gym and a spa with sauna steam rooms a hamman hydrotherapy circuit and relaxation lounge.

“We are delighted by the trust placed in us by a valued owner like Codelpa and by the opportunity to further strengthen our already solid portfolio in the Dominican Republic,” said Javier Águila, president of Inclusive Collection, Hyatt. “Hyatt currently has 34 hotels – 32 of them all-inclusive resorts – and nearly 17,000 rooms in the country. This is a clear reflection not only of our scale but also of our long-standing commitment to a destination that is central to our past present and future strategy in the Caribbean.”

The resort will also include a water park five pools including an adults-only pool and a kids pool along with tennis and pickleball courts mini golf climbing walls a ropes course bowling alley playgrounds and supervised activities through Kid’s Club and Teen’s Club.

“Punta Cana continues to be a prosperous destination for our guests and members seeking a family-friendly resort experience and we are committed to expanding our brand presence and offerings within this trending region to meet these needs,” said Antonio Fungairino, head of development, of Latin America & Caribbean, Inclusive Collection Hyatt. “We’re thrilled to continue to expand our relationship with Codelpa and look forward to Hyatt Ziva Punta Cana in the region known for its rich history and culture ideal for families.




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