Coach tour operators are reporting a surge in UK holidays since the start of the Iran war, with the rising cost of airfares being cited as a possible factor.
While the spike in the cost of diesel at the pump is hitting operators hard, the blow may be softened as the public increasingly looks to stay at home amid the crisis in the Middle East.
The cost of jet fuel has risen due to the blockade of the Strait of Hormuz, leading airlines to pass on the cost, with the appeal of the stable and cost-effective UK coach holiday indirectly rising.
Weighing up risks
Daish’s Holidays, which has 11 hotels in UK seaside resorts as well as operating coach tours, says August reservations are up 26% on 2025. Bookings for the business’s Imperial Hotel in Eastbourne are up 55% year-on-year, while Daish’s Hotel on the Isle of Wight has recorded a 39% increase. Similar surges have been seen elsewhere with its Somerset Hotel in Llandudno registering a 20% increase and the Russell Hotel and Hotel Prince Regent up 10%.
Commercial Director Paul Harper believes more travellers are being dissuaded from holidaying abroad due to rising costs and uncertainty. He says: “We’re seeing a clear shift in consumer behaviour as travellers weigh up the rising costs and uncertainty associated with overseas holidays.”
Mr Harper, who is on the board of the Coach Tourism Association (CTA), adds: “Most operators are feeling like it’s a strong year. That’s the general feedback I’ve had.”
‘Notable uplift’
Alfa Holidays Group, which owns 25 hotels in the UK and operates coach tours, is noting a similar trend. Managing Director Emma Russell reports a “notable uplift” over the last five weeks.
She says: “I think it’s a mix of things: the fact that there’s an ongoing cost of living crisis, the price of fuel on the forecourts, and the impending threat of other utilities going up in July. Coach holidays are cost-of-living-busting holidays because you get so much included.
“It’s the fact there’s a Middle East conflict and people are less likely to go abroad, packaged with the cost of living. You can pretty much go on those coach holidays and you just have to add drinks and maybe a lunch. You know you’ve pretty much paid for everything up front at a very reasonable price.”
Sector is robust
Robert Shaw, CTA Chair and Managing Director of operator Harry Shaw, says: “While the current rise in fuel costs and pricing instability has added cost and complexity, coach holiday operators have developed into lean businesses with an in-built ability to deal with unexpected shocks, following the market challenges they’ve had to overcome in recent years.
“Members have also reported a recent upturn in bookings following the uncertainty and disruption in air travel, as well as the rising costs – and cost uncertainty – when travelling by aeroplane.
“This is because holidays by coach provide greater reliability for trouble-free travel, and they can also offer better value, and greater cost stability, as customers know up-front what the cost will be. Whether holidaying in Britain, Ireland, or across Europe, a local coach operator can offer fantastic holidays with experiences that will rival any global trip.”
Searches up
Data from Google Trends reveals that the volume of searches for “UK coach holidays” has soared since the Iran war started on 28 February. The number of queries on the search engine for that term was up by 41% in March compared to the same period in 2025. For April, it was up by 51% year-on-year.
Search volumes for the phrase in March reached their highest level for that month since the COVID pandemic, while April saw the strongest figure for the month since 2022.
The trend towards stay-at-home holidays may fail to offset the increase in costs that operators have experienced, with the price of diesel having risen by 34% since the start of the Middle East crisis, according to RAC figures. Alfa Holidays is absorbing the cost and promising customers that holidays booked now will not be subject to fuel surcharges.
Mr Harper observes that the crisis is a “double-edged sword”. He adds: “We’re probably talking an extra £6-10,000 on any given week in additional fuel prices.” However, while he says the Bournemouth-based operator is not planning to impose surcharges, he says: “It does get passed on one way or another – not necessarily at the time but for future-proofing it and, if this continues, that will be taken into consideration when we start looking at next year’s brochure.”
Both operators joined haulage and coach trade body RHA in urging the UK government to follow other countries in offering financial support to the industry in view of the fuel costs. RHA has lobbied for an essential user rebate on fuel duty, which is set to rise in September.
“We would love to see a reduction of the VAT element or something similar,” says Mr Harper. “We’ve been campaigning for a reduction in VAT on tourism for years and years, but it’s definitely something that needs to be looked at now just to soften the blow.”
