Greece and Spain are expected to benefit significantly from “last-minute” bookings, which tourists are increasingly choosing this year in an environment of general uncertainty, according to the world’s largest travel group TUI Group.

The war in Iran continues to fuel the trend for “last-minute” bookings. “Our results, along with the overall market, show a trend towards increasingly short-term bookings,” TUI Group said in its quarterly results announcement today, noting that among consumers who say they will travel this summer, nearly half have not yet made a booking. “Demand is shifting towards Spain, including the Balearic and Canary Islands, as well as Greece, which are expected to be the most popular tourist destinations this summer,” the group said, also forecasting an increase in average prices to partially offset rising costs. Price increases are already being seen in TUI Group hotels and cruise ships.

Despite the negative impact of the war in Iran, estimated at €40 million, and Hurricane “Melissa” in Jamaica, estimated at €5 million, from January to March this year the group’s revenues increased by 1.7% at constant exchange rates, reaching €3.74 billion, while operating losses of €188 million were almost 9% lower compared to last year.

TUI Group has, however, refrained since last month from issuing an annual revenue forecast, as the environment remains unstable. Its adjusted operating profit (EBIT), excluding exceptional items, is still expected to remain between €1.1 and €1.4 billion, in the best case matching last year’s €1.4 billion result.