With US-Israel-Iran conflict impacting travel, OTAs rethink advertising strategy

It has been weeks since the escalating tensions between the United States, Israel and Iran began to spiral into a full-blown geopolitical crisis, and its ripple effects are now being felt far beyond the conflict zone. In India, the aftermath has cut across sectors, from LPG-related disruptions to tremors in the FMCG supply chain and volatility in the stock markets. But among all impacted industries, travel and tourism has emerged as the most immediately and visibly affected since the start.

The disruption is both direct and widespread. According to multiple reports, the closure of critical air corridors over West Asia and heightened security concerns have forced Indian carriers to cancel thousands of flights, reroute operations, and absorb rising fuel costs amid volatile oil prices. In fact, Civil Aviation Ministry data indicates that over 4,300 flights have already been cancelled, while industry estimates suggest that total disruptions could run into tens of thousands globally as the crisis deepens.

Middle East conflict puts businesses on hold

A source close to the matter, requesting anonymity, said that roughly 27,000–30,000 flights have been cancelled globally so far due to the ongoing conflict. The impact has been particularly visible at key transit hubs such as Dubai, which typically handle around 1,200 flights daily. At the peak of the disruption, operations reportedly dropped to just 40–50 flights a day. While there has been some improvement since, traffic is yet to return to normal levels. (The data shared by the source is indicative and limited to its own platform view.)

For India’s travel ecosystem, the implications go far beyond aviation. The tourism value chain has been hit by a wave of cancellations and deferments, as uncertainty and safety concerns weigh heavily on consumer sentiment. 

Read related story on LPG crisis affecting FMCG industry

This cascading impact is now being acutely felt by travel platforms and online travel agencies (OTAs), which are grappling with an unprecedented surge in cancellations, refunds and rescheduling requests. The crisis has forced these platforms into rapid recalibration, not just operationally, but also in how they communicate with consumers in real time.

For players like ixigo, early data already points to a visible shift in traveller behaviour. Aloke Bajpai, Co-founder and Group CEO, notes that the pecking order of international destinations has temporarily changed, with Indian travellers increasingly favouring closer and perceived safer geographies. Between late February and mid-March, flight bookings to destinations such as Vietnam, Nepal and Sri Lanka have seen sharp year-on-year growth, while demand for traditional West Asia routes has softened amid the ongoing developments. At the same time, domestic leisure travel continues to remain resilient, with strong growth across destinations like Udaipur, Jodhpur and Srinagar, signalling a pivot towards safer, short-haul travel.

Geo-political crisis: Ad budgets shrink

For marketers, this is translating into a more agile approach to campaign planning, with spends being redirected toward stable corridors and messaging centred on flexibility, value and clarity—factors that are currently driving consumer decision-making. Industry observers also point out that this moment is prompting brands to rethink their travel portfolio itself, with domestic and short-haul segments moving from being fallback options to becoming central to demand strategies.

At Cleartrip, the response has been centred around reassurance and transparency. Priyaah Sundaraam, Vice President – Head of Customer Experience and Fulfilment, explains that during such moments of uncertainty, the company’s communication strategy shifts fundamentally from persuasion to support. “Our entire communication philosophy pivots to putting our customers’ peace of mind first,” she says, adding that the focus is on proactive, frequent and clear communication. 

In effect, the crisis is forcing a reset in how OTAs and travel brands approach not just customer service, but also marketing and advertising. 

“What’s immediately visible is that the tone of travel advertising has changed. Out goes aspirational destination romance and hard-sell CTAs. In comes utility-led messaging—flexibility, rebooking guarantees, insurance, real-time support. The question brands are answering right now isn’t ‘Where do you want to go?’ but ‘Can you travel without stress?’” says Sujeet Behra, President – Carat & CSO – Dentsu Media.

On the media side, he pointed out that this is leading to reallocation, not reduction. “Budgets earlier driving Gulf-heavy outbound travel are now shifting toward domestic routes, Southeast Asia and more stable corridors. Overall, it’s less about pulling back and more about becoming sharper, more responsive and far more consumer-relevant in real time.”

With travel demand turning volatile and consumer anxiety running high, the traditional aspiration-led messaging is taking a backseat. Instead, brands are leaning into utility-driven communication, highlighting flexibility, real-time updates, easy cancellations and on-ground support.

For instance, Cleartrip has ramped up call centre capacity, activated priority assistance lines for affected travellers, and worked closely with airline partners to provide real-time updates and alternative travel options. It has also introduced tools such as live flight status tracking within its app, enabling users to access up-to-the-minute information on delays, cancellations and schedule changes.

Airlines, meanwhile, are attempting to balance disruption with continuity. Air India, for instance, has been actively sharing real-time updates on flight disruptions and operational changes, while also continuing network expansion efforts where feasible. The airline recently commenced operations from Terminal 2 at Guwahati’s Lokpriya Gopinath Bordoloi International Airport, marking its inaugural flight with regionally rooted onboard gestures such as serving traditional Assamese sweets and honouring passengers with cultural tokens.

However, even as travel platforms double down on customer communication and support, the pressure across the broader aviation ecosystem continues to mount. The crisis is driving up operational costs for airlines, with aviation turbine fuel prices surging amid the conflict. As a result, carriers such as IndiGo and Air India have introduced fuel surcharges on both domestic and international routes, pushing up airfares for travellers. Airlines are also being forced to take longer routes to avoid conflict zones, further increasing costs and travel time.

The financial strain on airlines is intensifying alongside operational disruptions. Indian carriers have reportedly had to cancel a significant portion of their international operations in recent weeks, even as they navigate rising fuel taxes and operational costs. With aviation fuel accounting for nearly 30–40% of airline expenses, the ongoing crisis is expected to significantly impact profitability across the sector.

Behra further pointed out that the bigger shift, though, is structural and has been building for a while, but the current situation is accelerating it. OTAs are leaning much harder into owned ecosystems - apps, CRM, push notifications, in-app servicing rather than relying heavily on paid acquisition. In volatile conditions, your most valuable audience is the one you already have.

For travellers, this has translated into not just uncertainty but also higher costs, with fares rising across routes due to fuel surcharges and longer flight paths. The combination of elevated prices and unpredictable schedules is further dampening outbound travel demand, particularly on long-haul and transit-heavy routes.

At the same time, tighter regulatory scrutiny around cancellations and refunds is adding another layer of pressure on airlines, even as they deal with large-scale disruptions, further complicating the operating environment for both carriers and the platforms that depend on them.

For OTAs and travel brands, the question is simple—can communication still influence demand, or is it now just playing catch-up as disruptions dictate how people travel?