Where Travel Demand Is Heading: Middle East Down, Mediterranean Up

Key Points

• Travel demand is shifting from the Middle East to the Mediterranean and Asia-Pacific regions due to geopolitical conflicts.
• The Skift Travel Health Index shows modest global growth, but regional differences are stark, with the Middle East seeing a sharp decline and destinations like Spain, Italy, Morocco, Japan, and Thailand gaining popularity.
• The U.S. short-term rental market remains strong overall, with some regions outperforming others and summer demand pacing ahead of last year.

Summary

Travel demand worldwide in early 2026 is shifting away from the Middle East, which saw a sharp decline due to airspace closures following the U.S.-Iran conflict, and moving toward the Mediterranean and Asia-Pacific regions. The Skift Travel Health Index highlights only modest global growth, but regional disparities are pronounced, with Mediterranean destinations like Spain, Italy, and Morocco as well as Asian spots like Japan and Thailand surging. In the U.S., the short-term rental market is stable and strong overall, though performance varies by region, with summer bookings exceeding last year's levels despite broader economic uncertainty.