Impact of Russia and Ukraine War on The Travel Industry

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War is always a deterrent to all GOOD things, and Russia’s invasion on Ukraine is no exception. The struggle of travel industry due to Covid-19 doesn’t need any explanation. It has barely recovered with the vaccination drives and relaxation in travel restrictions when the war played the foul game. Here are the key impacts of the Russia-Ukraine conflict on the industry.

#1. Impact on Airfare

The increased sanction on the energy sector in Russia has resulted in the increase of jet fuel prices. Jet fuel price makes 25% of an airline’s operation and Russia is one of the major suppliers of all hydrocarbon products.

Another Russian general killed amid invasion, Russian official says

The price rose sharply since the start of the conflict. It was at USD 150 per barrel on 21 March (daily closing prices), up 39% on the month and 121% year-on-year. The trend is likely to continue, if more stringent sanctions are applied to the Russian energy sector. Airlines have two choices, either to absorb the increased fuel cost or pass it to the passengers. It’s a difficult situation for the airlines which are still in the recovery phase and increasing the fare will decrease the demand. Airlines are trying their best to hedge the interest of travelers.

#2. Impact on Traffic Movement

Travel to Europe

Russia and Ukraine share borders with Belarus, Latavia, Estonia, Finland, Moldova, Romania, Hungry, Slovakia and Poland. These countries have turned into no-travel zone particularly for leisure travel with reason obvious. The United Kingdom, Netherlands, Germany, Norway, Denmark and Ireland provide good alternatives. Russia’s ban of its airspace for EU nations, the UK, and the US has little to no impact for the US travelers planning to visit those alternative destinations.

Europe is home to some of the world’s best destinations including Palme del Mollorca, Barcelona, Milan, Paris and London. Take a look at the travel advisories from the US Department of State on travel to popular countries in the region.

S. No.	Country	Travel Advisory	Assistance for US Citizens (US Embassy Address)
1	United Kingdom	Level 2(Exercise increased caution): Reason: Terrorism.	U.S. Embassy London33 Nine Elms Lane London, SW11 7US United Kingdom
2	Netherlands	Level 2(Exercise increased caution): Reason: Terrorism.	U.S. Consulate General AmsterdamMuseumplein 19 1071 DJ Amsterdam
3	Germany	Level 2(Exercise increased caution): Reason: Terrorism.	U.S. Embassy BerlinU.S. Embassy Berlin Clayallee 170 14191 Berlin Federal Republic of Germany
4	Norway	Level 1(Exercise normal precaution).	U.S. Embassy OsloMorgedalsvegen 36 0378 Oslo Norway
5	Denmark	Level 2(Exercise increased caution). Reason: Terrorism.	For U.S. Citizens U.S. Embassy CopenhagenDag Hammarskjölds Allé 24 2100 Copenhagen Denmark
6	Russia	Level 4 (Do not travel).	U.S. Embassy MoscowBolshoy Deviatinsky Pereulok No. 8 Moscow 121099, Russian Federation

Travel to Asia

Looking at the security and geo-political crisis, there is little to no impact on travel to Asia, particularly from the Americas as the flight routes are not much dependent on either Russian or Ukrainian airspace. Asia is home to some of the top global destinations of the world including Bangkok, Kuala Lumpur, Tokyo, Seoul, Osaka, Makkah, Phuket, Pattaya and Bali. Take a look at the travel advisories from the US Department of State on travel to popular countries in the region.

S. No.	Country	Travel Advisory	Assistance for US Citizens (US Embassy Address)
1	Thailand	Level 1(Exercise normal precautions).	U.S. Embassy Bangkok95 Wireless Road Bangkok 10330 Thailand
2	Malaysia	Level 1(Exercise normal precautions).	U.S. Embassy Kuala Lumpur376 Jalan Tun Razak 50400, Kuala Lumpur Malaysia
3	South Korea	Level 1(Exercise normal precautions).	U.S. Embassy Seoul188 Sejong-daero, Jongno-gu, Seoul 03141, Korea
4	Indonesia	Level 2(Exercise increased caution): Reason: Terrorism, Civil Unrest, Natural Disaster.	U.S. Embassy JakartaJl. Medan Merdeka Selatan No. 3 – 5 Jakarta 10110, Indonesia
5	China	Level 3(Reconsider Travel). Reason: Health and Others.	U.S. Embassy BeijingNo. 55 An Jia Lou Road Chaoyang District, Beijing 100600 China
6	Japan	Level 3(Reconsider Travel). Reason: Health.	U.S. Embassy Tokyo1-10-5 Akasaka, Minato-ku, Tokyo 107-8420 Japan
7	Saudi Arabia	Level 3(Reconsider Travel). Reason: Terrorism and Other.	U.S. Embassy RiyadhAbdullah Ibn Hudhafah As Sahmi Street Roundabout no. 9, Diplomatic Quarter Riyadh, Saudi Arabia
8	Turkey	Level 2(Exercise increased caution): Reason: Terrorism, Civil Unrest, Natural Disaster.	U.S. Embassy Ankara110 Atatürk Blvd. Kavaklidere, 06100 Ankara Turkey