Iran War undermines record financial year for Hays Travel

The owner of Hays Travel said volatile trading in the last seven weeks had “put paid” to another record-breaking year but reported “early shoots” of recovery last weekend.

Owner Dame Irene Hays told the Hays Independence Group spring conference the agency had introduced an immediate moratorium on all-but-essential spending just five days after the launch of US-Israeli strikes on Iran on February 28.

Hays told the conference in Chester: “It would be remiss of me not to say that it’s been yet another challenging time in the travel industry.

“Clearly the pain the industry is going through pales into insignificance compared with the challenges and pain the people in those countries affected will be going through, so I say this with some humility and respect to them.”

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She added: “We would have been in for another record year but the last seven weeks have put paid to that. We cannot take seven weeks with the trading we have had without that changing our financial position, but we will not be alone.”

Hays blamed volatility in the markets since the start of the war and the instant impact of rolling coverage on consumer confidence, adding: “There isn’t any question about it; the rate of change and response to concerns around the world is getting faster. With 24-hour news, what happens has an immediate impact on the stock exchange but particularly on how our customers are feeling.”

Following a brief reopening of the Strait of Hormuz, she said the group had begun to see the “early shoots of a return to business” last weekend.

“It was the most encouraging set of figures we have seen so far in March and April,” she added.

Reflecting on the group’s decision to curb spending over the last seven weeks, she said it had been vital for Hays Travel to act quickly as the conflict in the Middle East developed.

All members of Hays Travel’s senior team were immediately charged with finding efficiencies and have already submitted proposals.

Changes have included making sure the group is closely monitoring and targeting marketing spend on destinations, with the company “doubling down” on its monthly destination and cruise line campaigns and focusing on perceived “safe” options.

“It’s paid dividends,” Hays said, as she urged Hays IG businesses to respond quickly, not put their “heads in the sand” and recognise that crisis situations often provided opportunities for innovation.

“Some businesses took a while [to respond] – [but] there isn’t any point in waiting because who knows what is coming next and the quicker we come up with a plan with what we are doing for our people and our business the better,” she added, noting: “Good businesses facing challenges should look at their business model to derisk.”

The conference revealed Hays IG’s overall sales were 13% up for the financial year to the end of March, 2026. However, after a ‘soft’ February, particularly for the family market, March sales were significantly down and there was a marked increase in cancellation rates.

Hays added: “We [Hays Travel group] continue to have a very strong balance sheet, not one penny of debt, a clear strategy of growth and significant funds earmarked to help Hays IG members.”