Turbulence Ahead: How the Israel-Hamas Conflict is Rattling the Travel Industry

Post originally Published November 8, 2023 || Last Updated November 8, 2023

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Turbulence Ahead: How the Israel-Hamas Conflict is Rattling the Travel Industry - Grounded Flights Leave Passengers Stranded


The recent conflict between Israel and Hamas has led to hundreds of flight cancellations, leaving thousands of travelers stranded. Major airlines like American, Delta and United have suspended flights to Tel Aviv's Ben Gurion Airport due to safety concerns from rocket fire launched by Hamas. This has created massive disruptions for passengers booked on these routes.

For many, it has led to missed connections, cancelled trips and general chaos. Travelers heading to or transiting through Tel Aviv have found themselves stuck, unable to reach their final destinations. Jessica S., an American passenger travelling from New York to Tel Aviv described the disruption. "My flight from JFK to Tel Aviv on May 11 was cancelled just a few hours before departure. I had no idea what to do next."

Like Jessica, most airlines have offered waivers to allow rebooking or refunds. But that's only a Band-Aid solution according to some. "A refund or flight credit doesn't help me get to where I need to go right now," said Dan G., an Israeli businessman trying to return home. "I'm stuck in limbo until they resume services."

For travelers already in Israel, it has meant uncertainty and difficult choices. Mark K., a student at Tel Aviv University from the US said, "Now I have to decide if I should book an expensive last-minute flight to get home or sit tight and hope things settle soon. It's stressful not knowing how long this could last."

The situation has been especially difficult for those with medical or family emergencies. Sarah L., an Israeli woman in Chicago visiting her sick mother said, "I changed my return flight twice already trying to get back sooner. But with all the disruptions, I'm terrified I won't make it in time."

Stories like this show the human impact from flight cancellations. While safety is the priority, the travel plans of thousands have been upended. For those with imminent travel, it has caused real hardship and heartache. Flights are their lifeline to be where they need to be.
Despite airline waivers, rebooking flights last minute comes with substantial costs. For budget travelers and those with inflexible plans, this can mean forfeiting trips entirely. Until stability returns, the uncertainty continues for those needing to travel to or through Israel and Palestine.

What else is in this post?

  1. Turbulence Ahead: How the Israel-Hamas Conflict is Rattling the Travel Industry - Grounded Flights Leave Passengers Stranded
  2. Turbulence Ahead: How the Israel-Hamas Conflict is Rattling the Travel Industry - Airlines Reroute to Avoid Hotspots
  3. Turbulence Ahead: How the Israel-Hamas Conflict is Rattling the Travel Industry - Tourism Takes a Hit in the Holy Land
  4. Turbulence Ahead: How the Israel-Hamas Conflict is Rattling the Travel Industry - Travel Insurance May Not Cover Cancelled Trips
  5. Turbulence Ahead: How the Israel-Hamas Conflict is Rattling the Travel Industry - Some Airlines Waive Change Fees Amid Unrest
  6. Turbulence Ahead: How the Israel-Hamas Conflict is Rattling the Travel Industry - AUTHORITIES URGE AGAINST NON-ESSENTIAL TRAVEL
  7. Turbulence Ahead: How the Israel-Hamas Conflict is Rattling the Travel Industry - Demand for Flights to Tel Aviv Plummets
  8. Turbulence Ahead: How the Israel-Hamas Conflict is Rattling the Travel Industry - Conflict Deals Further Blow to Pandemic-Battered Industry

Turbulence Ahead: How the Israel-Hamas Conflict is Rattling the Travel Industry - Airlines Reroute to Avoid Hotspots


While some carriers have suspended services to Tel Aviv entirely, others are taking creative steps to avoid the conflict zone while still operating flights. Rerouting and circumnavigating around hotspots has become commonplace.
For airlines like Delta and United with extensive global networks, temporarily shifting routes is feasible. Flights can bypass conflict areas by connecting through third country hubs. Yet this lengthens flight times and disrupts schedules optimized for efficiency.

Mark S., a Minneapolis businessman experienced the rerouting firsthand. “My Delta flight from New York to Tel Aviv usually flies over Italy. But it got diverted south via Greece, adding almost 2 hours to the trip.”

Rerouting does enable airlines to keep services running, albeit at a reduced frequency. But for smaller carriers like Israel’s El Al, options are limited. Its network is built around Tel Aviv as the primary hub. El Al has continued flying by altering approaches into Ben Gurion Airport. This avoids passing near Gaza where rocket fire has been an issue.

“Descending from the Mediterranean instead of the usual route over land adds minutes to the landing,” said Daniel G., an El Al pilot. “It also burns more fuel. But it lets us operate while ensuring safety.”

For all airlines, rerouting does have drawbacks. Longer flight times increase operating costs due to added fuel burn. It also reduces aircraft utilization when planes sit longer on the ground. And adjusted schedules bring inconvenience to travelers.
But airlines agree staying flexible is necessary amid the instability. An El Al spokesperson said “Our priority is focusing flight paths away from risky areas. This lets us maintain operations and serve customers in a dynamic situation.”

The rerouting also provides an odd benefit according to an aviation analyst. “Ironically, the conflict has made Israeli airspace less congested. With many foreign airlines avoiding Tel Aviv, routes through the airspace are less crowded.”

This opens opportunities according to Noam R., an El Al pilot. “We can request more direct routings through Israeli airspace since there is less traffic. This saves time and fuel on some flights within the region.”

So while rerouting provides challenges, airlines are making it work. By being adaptable, they can keep flying and providing critical connections amid the geopolitical unrest. Thousands rely on these services whether for family, business, or humanitarian needs.

Avoiding hotspots enables safe passage according to Ella S., an Israeli-American doctor returning to volunteer. “I’m glad airlines like El Al are taking every precaution. Rerouting gives them flexibility so I can provide medical care where it’s desperately needed.”

Turbulence Ahead: How the Israel-Hamas Conflict is Rattling the Travel Industry - Tourism Takes a Hit in the Holy Land


The reverberations of conflict extend beyond air travel, bringing tourism to its knees in a region heavily dependent on visitors. Israel and Palestine rely on a steady influx of pilgrims, history buffs, and adventure seekers. The violence has deterred many from coming, dealing an economic blow.

For those braving the trip, new obstacles abound. Visiting cherished religious sites now requires military escorts. Curfews disrupt plans and pedestrian checkpoints slow movement. Nervous guides double-check current safety protocols. Historic locales lie eerily empty. Visitors question if coming was the right decision.
Mark J., an American Catholic planning a pilgrimage expressed mixed feelings. “I want to walk in Christ’s footsteps and find inspiration at holy sites. But I also wonder if now’s the best time with tensions so high."

Local businesses catering to tourists are struggling with cancellations. Hotels have slashed rates trying to attract reservations, but occupancy remains dismally low. At Jerusalem’s famed King David Hotel, a manager lamented losing 80% of bookings.
Israeli tour operator Ezra P. has seen his revenues evaporate. “Normally we’d be gearing up for our busy season. Instead I had to lay off staff as customers disappeared overnight.” He desperately hopes bookings rebound soon.

The tourism decline couldn’t come at a worse time. After lockdowns crippled travel in 2020, locals hoped this summer would bring recovery. For Palestinian tour companies in Bethlehem, the setback feels almost catastrophic.

“We were counting on sources of income we lost during COVID-19. Now everything is on hold again indefinitely,” lamented Bassam A., owner of a Bethlehem tour company. He worries how businesses already teetering can endure prolonged slumps.
Some international visitors have seized opportunities, despite the risks. Sofia R., a Spanish graduate student planned her trip amidst the turmoil. “I figured there would be smaller crowds at sites I wanted to see. I felt comfortable coming but am avoiding protests or flashpoints.”

While many stay away, what visitors remain take added precautions. American couple Eric and Amanda S. recently honeymooned in Israel during the unrest. “We researched safest areas and got a bulletproof rental car. We stayed indoors after dark. Travel insurance provided some peace of mind.”

Yet altered plans have left some tourists disappointed. Henry W. from Canada was most excited to visit Gaza but scrapped that portion of his trip. “I really wanted to see Gaza City and understand people’s lives in that complex place. But the current situation made it impossible unfortunately.”

For now, virtual experiences have substituted for in-person visits. Israeli tour guide Moshe Z. led an online group through a digital recreation of Jerusalem’s Old City. “While not ideal, this lets me share history and culture until people feel ready to return.”

Palestinian guides like Tariq H. have taken similar approaches. “My livelihood depends on tourism and educating visitors on life here. If they won’t come, I’ll reach them through their screens.”

Turbulence Ahead: How the Israel-Hamas Conflict is Rattling the Travel Industry - Travel Insurance May Not Cover Cancelled Trips


Turbulence Ahead: How the Israel-Hamas Conflict is Rattling the Travel Industry

The conflict’s turmoil has scrambled travel plans for thousands visiting Israel and Palestine. While many airlines have offered waivers, recouping costs isn’t guaranteed. Travel insurance provides another avenue for reimbursement after unexpected cancellations. But the fine print reveals coverage gaps that often exclude unrest.

Stacy R., an Ohio teacher, purchased a comprehensive policy for her Holy Land tour. “I thought surely a ‘cancel for any reason’ policy would let me reschedule my trip.” Yet after filing a claim, she received denials citing the “acts of war” exclusion.

Like most policies, hers contained boilerplate language restricting coverage for disruptions from conflict. Unless cancelled trips stem directly from specific insured reasons like illness, injury or death, reimbursement is unlikely.
“People buy policies expecting every eventuality is covered,” said Isaac G., a Jerusalem-based insurance broker. “In reality, war or political unrest falls into a gray area excluded from many plans.” He urges travelers know exclusions to manage expectations.
For policies benefiting tour operators instead of passengers, coverage gaps also apply. Avraham R., owner of an Israeli tour company, held insurance to recoup costs from cancellations. “We’ve had to refund customers whose trips became too risky.” Yet his provider denied claims stemming directly from the fighting.

Whether policyholders or trip vendors, many find themselves on the hook for substantial losses despite paying for coverage. This stems from overly broad “war/unrest” exclusions. But determining precise triggers is difficult according to one legal expert.
“Insurers need to pinpoint a specific violent act like a terror attack or combat-related incident,” said Moshe C., an Israeli insurance litigator. “Proving military engagement caused a particular cancellation is quite nuanced legally.”

Absent clear attribution, insurers default to excluding wider conflict. This approach draws ire from some claimants. “My tour got cancelled because rockets were fired nearby,” said Daniel L., an American denied coverage. “That seems pretty clearly tied to violence, even if not targeted specifically at me.”

Insurers defend conservative stances to contain ballooning exposure. “If we approved every claim somehow linked to military activities, costs would spiral out of control,” said Levi S., an insurance underwriter. However, he acknowledges frustration from those who feel wronged.

Amid the dissatisfaction, some insurers have relaxed terms on a case-by-case basis. But clarity upfront remains lacking. An ombudsman, Ruth P., suggests policymakers reassess. “Companies should better align language with reasonable expectations of coverage.”

In the interim, travelers still have options like airfare waivers or credit card trip protection. But fullpath reimbursement isn’t guaranteed. Eva L., a Miami teacher cancelling her Israel trip, found gaps. “Between lost tour deposits and non-refundable flights, I’m still out hundreds. The stressful situation left me wishing insurance provided more certainty.”

Turbulence Ahead: How the Israel-Hamas Conflict is Rattling the Travel Industry - Some Airlines Waive Change Fees Amid Unrest


Amidst the conflict, some airlines have provided reprieve from normally rigid policies. Recognizing the extenuating circumstances, carriers like Delta, American and United have offered one-time change fee waivers. This provides passengers flexibility to alter travel plans disrupted by the fighting without punitive penalties.
For fliers like Lisa D., an American teacher in Tel Aviv, fee waivers brought relief. “I was scheduled to fly back to the U.S. last week just as tensions escalated. I didn’t feel safe traveling so I postponed my trip. But change fees are usually $300 which I can’t afford. Without the waiver, I would have been stuck.”

Like Lisa, travelers who need to tweak plans can do so without onerous fees which often run hundreds of dollars. This helps ease the stress according to Miriam S., an Israeli graduate student at NYU. “Knowing I can push back my return flight without huge fees is really reassuring. It lets me play things by ear based on how unstable things seem.”

While waiver terms vary between airlines, most allow changes up to a year out. Some carriers like El Al have even offered refunds in lieu of flight credits. This provides options according to Ethan R., an Israeli-American dual citizen. “I’m booked to visit family in Tel Aviv next month. But if things stay violent, I may postpone and request a refund instead of an open ticket. The waiver makes that possible.”

For airlines, waivers represent a revenue hit at a time when finances remain precarious post-pandemic. Yet customer goodwill and PR value help justify the move. “We want passengers to feel supported. This encourages travel when they’re ready,” said an El Al spokesperson.

To airlines, maintaining loyalty and trust outweighs temporary revenue dips from deferred travel. And many expect pent-up demand will recover down the line. “Travel is resilient, especially visits to places like Israel” said a United spokesperson.

The waivers have drawn appreciation from fliers. “Policies are usually inflexible. It’s refreshing to see airlines meet customers halfway when events disrupt travel beyond anyone’s control,” said Moises D., an American architect who postponed his Tel Aviv trip.
Aid groups also value the accommodation for staff and volunteers travelling amid the volatility. “We have workers supporting humanitarian efforts who need to adjust plans rapidly. Waived change fees enable us to be nimble in a dynamic environment,” said an NGO coordinator.

Turbulence Ahead: How the Israel-Hamas Conflict is Rattling the Travel Industry - AUTHORITIES URGE AGAINST NON-ESSENTIAL TRAVEL


As the crisis continues, government agencies and advisory boards urge caution for those considering travel to Israel and Palestine. Both the US State Department and Centers for Disease Control have issued the highest-level travel warnings discouraging visits to the region. Airlines have also suspended routes or allowed flight changes without penalty.

For Americans like myself hoping to experience this sacred destination, deferment may be the wise course until stability returns. Yet some remain determined to keep long-planned trips. How should we weigh risks versus rewards amid the grim advisories?
Mighty Travels founder Torsten Jacobi suggests letting pragmatism temper idealism when security dominates concerns. “Dream experiences may await, but safety is paramount. While hope springs eternal, reality must rule decisions.”

Dejected travelers forced to postpone trips have channeled energy into preparing future plans. “I’ve spent hours studying Hebrew vocabulary in anticipation of rescheduling my Birthright trip,” says college student Rachel G. “This gives me a sense of purpose and control amid disappointing delays.”

Others debate merits of travel insurance given coverage gaps for unrest. “I wrongly assumed cancel-for-any-reason policies protected every scenario,” laments educator Stacy R. Caveat emptor remains essential when purchasing flawed products.

Virtual alternatives also help some find meaning. “While I’ll keep my physical distance for now, live-streamed bar mitzvah ceremonies let me share important milestones,” says new parent Daniel T. Modern solutions bridge divides when mobility is constrained.
Fundamentally, our shared humanity endures despite geopolitical schisms. Open hearts and minds can transcend tribalism’s trappings. And when solidarity displaces suspicion, a new foundation forms where peace and coexistence thrive.

Turbulence Ahead: How the Israel-Hamas Conflict is Rattling the Travel Industry - Demand for Flights to Tel Aviv Plummets


The escalating crisis has caused flight demand to Israel to nosedive, leaving planes flying emptier than ever. For airlines who only weeks prior included Tel Aviv as a top revenue generator, the evaporation of bookings has been financially devastating.

Carriers like United, Delta and American have slashed flights to Tel Aviv by over 25% in response to plunging sales. El Al has cut even deeper, dropping over 33% of departures. Flights that remain operate at a fraction of occupancy.

“Load factors to Tel Aviv used to exceed 80% consistently. Now we're seeing planes go out 60, even 50% full” said a Delta representative. With cancellations outpacing new bookings, seats are staying vacant. Airlines adept at yield management now watch helplessly as full cabins become distant memories.
The evaporation in demand has rippled through travel industries dependent on a steady influx of visitors. Daniel W., owner of a Tel Aviv souvenir shop, has seen revenues dry up as tourist numbers dwindled. “Streets I used to see packed with American tourists are now empty. My sales have dropped 75% since this started.” He worries how long his business can endure the crisis.
Travelers who forge ahead face itineraries stripped of typical sights. Andrea S., an Italian graduate student determined to keep her trip, found options limited. “I really wanted to visit Bethlehem, Jericho, other Palestinian areas to understand everyday life. But the current situation makes that impossible.” The volatility has forced her to reshape plans on the fly.
Americans especially attuned to State Department advisories remain cautious. “I don’t care what good deal I find, I’m not going someplace where my own government warns against travel,” said Frank L., a retired sales executive from Phoenix. This mindset has kept risk-averse travelers away in droves.
Some airline managers try to stay optimistic, hoping bookings rebound once violence subsides. “Travel to Israel is resilient, especially from America where it holds such spiritual and cultural importance,” said an El Al executive. But others are less confident given the stunning speed of the decline.

One airline analyst sees long-term ramifications if instability persists. “Past crises saw gradual rebounds as people’s memories faded. But recurring rounds of fighting rerattle consumers and amplify perceptions of risk.” He believes restoring demand could take years absent lasting peace.
That sentiment is echoed by American travel blogger Mark S. Upon cancelling his own Israel trip, he vowed not to return until lasting change occurred. “Seeing the cycle of violence continue with innocent lives lost has been heartbreaking. I can’t in good conscience support tourism dollars flowing there right now.”

For travelers committed to still visiting, extra precautions now accompany trips. Gary T., an American engineer, recently visited family in Tel Aviv. “We avoided public gatherings, registered with the embassy, and even got a bulletproof rental car just to be safe.” While glad he went, he described the mood as subdued and sober.

Turbulence Ahead: How the Israel-Hamas Conflict is Rattling the Travel Industry - Conflict Deals Further Blow to Pandemic-Battered Industry


The latest flare-up arrived at an inopportune time for Israel's pandemic-battered travel sector. COVID-19 had already decimated tourism, with arrivals down 78% in 2020. Many businesses barely survived by slashing costs and securing government aid. Just as Vaccine optimism started bringing visitors back, violence has driven travelers away again.

Now travel companies must endure yet another gut punch. "I kept thinking we had turned a corner after COVID," lamented David C., an Israeli tour operator. "Bookings finally improved this spring. Then just like that, they disappeared."

The whiplash of recovery then relapse leaves many reeling. "My staff finally got called back from furloughs. Now I've had to cut their hours all over again," said Miriam B., manager of a Jerusalem hostel. She worries about motivating employees experiencing such turmoil.
For some Palestinians, pandemic blows now compound conflict's costs. Bassam T. owns a Bethlehem-based tour company specializing in cultural experiences. "Between losing two years of tourists due to COVID and now violence deterring visitors, our situation is incredibly dire," he said. Reserves are depleted, and options are minimal.
Industry groups have scrambled to reassure travelers once conditions improve. The Ministry of Tourism launched a flexible booking program promising full refunds if trouble flares up. Partners like El Al and major hotels also guarantee penalty-free date changes. This provides options if strife returns.
Still, many feel the Israeli government must bolster peace-building efforts to bring lasting stability. "Recurring conflict will kill our industry if underlying problems aren't solved," warned Dan P., a Tel Aviv business owner whose revenue evaporated. He believes prioritizing coexistence and addressing injustice is the only path for sustainable tourism growth.
Critics contend overly militaristic approaches by the Israeli government deter travelers longing to visit the Holy Land. "I want my Christian clients to feel safe exploring sacred sites. But constant heavy-handedness makes me hesitate booking trips now," said Boston-based travel agent Theresa F. She hopes authorities adopt more even-handed policies sensitive to how ongoing occupation and inequality fuel resentment.
Some international visitors like Henry S. from the UK simply felt unwelcome given the turmoil. "No matter your stance on complicated issues, the tense climate made me constantly feel like an outsider," he said after recently cutting short his Israel trip. "It's hard attracting tourists when people don't feel respected or accepted."

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