Amadeus sees booking slowdown as Middle East conflict disrupts travel demand

Geopolitical instability is once again testing the resilience of global travel distribution, even as pricing power and hospitality technology revenue remain strong

Amadeus reported a slight year-over-year decline in air bookings during the first quarter of 2026, largely driven by the impact of the conflict in the Middle East. The company said booking momentum had been strong at the start of the quarter before geopolitical tensions triggered a rise in cancellations and weaker booking activity. Despite softer booking volumes, Amadeus continued to grow overall revenue thanks to higher revenue per booking, airline IT demand, and continued growth in its hospitality technology business. For hoteliers, the results underline how geopolitical events can quickly affect travel demand patterns while also reinforcing the growing importance of diversified revenue streams across travel technology.

Key takeaways

• Middle East conflict impacted booking trends: Amadeus said strong booking momentum in January and February reversed after the escalation of conflict in the Middle East, leading to slower new bookings and higher cancellation levels.
• Underlying demand remained relatively healthy: Excluding the impact of the Middle East situation, Amadeus said bookings would have increased by 4 percent year over year during the quarter, suggesting broader travel demand remained stable.
• Recovery signs emerged in April: The company reported improving booking trends in April, with cancellations declining, although overall bookings still remained below prior-year levels.
• Revenue grew despite lower booking volumes: Air distribution revenue increased slightly as higher revenue per booking offset weaker transaction volumes, reflecting pricing increases, contract renewals, and inflation-related adjustments.
• Hospitality technology remained a growth contributor: Amadeus’ Hospitality and Other Solutions division continued to grow, highlighting ongoing investment by hotels in technology platforms despite broader market uncertainty.
• Airline IT Solutions outperformed distribution: Revenue growth was stronger in Amadeus’ airline IT business than in traditional distribution, reflecting continued airline spending on operational and passenger technology systems.
• Profitability remained stable: The company reported modest profit growth year over year, showing resilience despite geopolitical disruption and softer booking activity.
• Hoteliers should monitor regional demand volatility: The results are another reminder that geopolitical events can rapidly affect booking behavior, particularly in international and corporate travel segments that heavily rely on global distribution networks.

Source: Amadeus

Enjoying this analysis? Hospitality.today delivers daily insights on hotel distribution, AI trends, and travel commerce — straight to your inbox. Subscribe for free at Hospitality.today →