Summer holidays 2026: costs rise due to war, but some destinations become cheaper

Context

TL;DR

• 2026 summer holidays costlier due to Iran war and Strait of Hormuz blockade.
• Energy price surge impacts travel costs, especially for flights.
• Some destinations like Azores and Sicily see price hikes up to 22%.
• Early booking and flexible dates can help save on holiday costs.

Key facts

• Main Cause: War in Iran and blockade of Strait of Hormuz.
• Price Increase: 10-20% higher than last year for Swiss holidays.
• Most Expensive: Azores (+22%), Sicily (+18%), Seychelles (+22%).
• Cheaper Destinations: Hurghada (-15%), Fuerteventura (-8%), Mallorca (-6%).
• Flight Cost Example: Lugano to Malé: 1,200 to 1,450 CHF.
• Booking Advice: Book 3-6 months in advance for better rates.
• Tax Deductions: Cross-border workers can deduct travel expenses up to limits.
• Effective Date: Tax breaks effective since January 1, 2023.

The 2026 summer holidays are expected to be more expensive due to the war in Iran and the consequent blockade of the Strait of Hormuz, one of the most critical transit routes for oil. According to an analysis by the travel portal HolidayCheck, the prices of summer holidays from Switzerland, including Ticinese towns such as Lugano, Bellinzona, and Locarno, are 10-20% higher than last year. This increase is mainly due to the surge in energy prices, with aircraft fuel (kerosene) almost doubling in a few weeks, rising from around 500 to 900 dollars per barrel.

The Most Expensive Destinations

The Azores and Sicily are among the destinations that have seen the highest price increases, with respective increases of 22% and 18%. Reaching the Seychelles (+22%), Thailand (+14%), Sri Lanka (+12%), and the Maldives (+12%) has also become more expensive. For a flight from Lugano to Malé, the capital of the Maldives, the average cost has increased from 1,200 to 1,450 Swiss francs. Smaller increases are seen for Vietnam (+4.8%), Mauritius (+3.4%), and Nepal (+2.6%).

Tour operators are reacting by strategically allocating accommodation capacity to the most in-demand destinations. According to Nina Hammer, a travel expert at HolidayCheck, this strategy is having an effect, with some prices slightly decreasing in April compared to March. > "We are observing some flexibility in prices, but the situation remains volatile."

Operational Checklist for Travelers

• Early bookings: Book at least 3-6 months in advance to get advantageous rates.
• Compare prices: Use comparison platforms to find the best deals.
• Flexibility in dates: Consider traveling in less crowded periods to save money.
• Monitor regulations: Check travel regulations for the chosen destinations, especially for countries with specific restrictions.

The Most Affordable Destinations

Some destinations, on the other hand, have seen a decrease in prices. Hurghada (-15%), Fuerteventura (-8%), and Mallorca (-6%) are among the destinations offering more advantageous rates. The Algarve (-6%) and the Costa de la Luz (-8%) also see a drop in prices. For a flight from Zurich to Fuerteventura, the average cost has dropped from 350 to 320 Swiss francs. However, Hammer emphasizes that this is just a snapshot and that the future trend of prices will depend on demand and external conditions in the coming weeks.

Comparison of Practical Scenarios

• Scenario A: A trip to the Maldives in July 2026 could cost around 3,500 Swiss francs for two people, compared to 3,000 francs in 2025.
• Scenario B: A trip to Fuerteventura in July 2026 could cost around 1,800 Swiss francs for two people, compared to 2,000 francs in 2025.

Regulations and Key Dates

• Customs duties: Check customs regulations for foreign destinations, especially for countries with specific restrictions.
• Visas and passports: Make sure you have all the necessary documents to travel, including valid visas and passports.
• Travel insurance: Consider purchasing travel insurance that covers any unforeseen events related to the geopolitical situation.

In conclusion, while some destinations become more expensive due to the geopolitical situation, others offer savings opportunities. Careful planning and flexibility can help travelers find the best deals for the 2026 summer holidays.

Operational details

For cross-border workers living in Ticino and working in Italy, the choice of holiday destination can have a significant impact on the family budget. With summer holiday prices on the rise, it's important to plan ahead and consider the most economical options.

How to Save on Summer Holidays 2026

1. Book well in advance: Expert Nina Hammer advises booking the summer holiday well in advance, especially for those with fixed travel dates. Some tour operators offer temporary flexible and free rates that allow you to rebook or cancel the reservation even at the last minute. For example, booking a flight to Malaga from Lugano in January 2026 could cost around 150 CHF instead of 250 CHF in June.

2. Consider alternative destinations: If traditional destinations have become too expensive, it might be worth exploring alternative destinations that offer more advantageous prices. For example, Hurghada, Fuerteventura, and Mallorca have seen a decrease in prices. A one-week holiday package to Hurghada for a family of four could cost around 3,000 CHF compared to 4,500 CHF for a week in Rimini.

3. Take advantage of last-minute offers: For travelers with more flexibility regarding travel dates and accommodation, last-minute opportunities may arise. According to Hammer, in some regions, such as Egypt, last-minute offers may appear later. For example, a last-minute flight to Sharm El-Sheikh from Zurich could cost around 400 CHF instead of 700 CHF for a standard booking.

The Impact of Restrictions in the Gulf Region

Restrictions in the Gulf region have a significant impact on the prices of long-haul flights. Many connections to Asia or the Indian Ocean transit through the hubs of the Gulf region. Alternative connections are considerably more expensive, as demonstrated by an analysis by the provider Vivido. Without a stopover in the Middle East, Swiss travelers pay on average over 11% more for their long-haul trips. Trips from Zurich to Bali cost as much as 26% more. According to Vivido, the surcharge for avoiding Middle Eastern hubs is strongly seasonal and is significantly higher in August than in December.

Operational Checklist for Ticino Cross-Border Workers

• Check holiday dates: Check your employment contract for fixed holiday dates and plan accordingly.
• Compare prices: Use comparison sites to find the best deals on flights and accommodation.
• Consider alternative destinations: Explore less expensive but equally attractive destinations.
• Take advantage of last-minute offers: If you have flexibility, monitor last-minute offers.
• Plan transportation: Consider local transportation costs and public transport tickets.

Comparisons Between Practical Scenarios

• Holiday in Italy: A week in Rimini for a family of four could cost around 4,500 CHF, including flights and accommodation.
• Holiday in Egypt: A week in Hurghada could cost around 3,000 CHF, offering significant savings.
• Holiday in Spain: A week in Malaga could cost around 3,500 CHF, an intermediate option.

Regulations and Incentives

Cross-border workers in Ticino can benefit from certain tax incentives. For example, the cantonal regulation provides that cross-border workers can deduct travel expenses to reach their workplace in Italy. However, these deductions do not apply to travel expenses for holidays. It is important to keep in mind that regulations can change, so it is advisable to consult an accountant for specific updates.

Conclusion

Planning ahead and considering alternative destinations can make a big difference in the holiday budget of Ticino cross-border workers. With a bit of research and flexibility, it is possible to find advantageous offers and enjoy a holiday without financial stress.

Useful tools to protect your net income

To reduce FX leakage, compare CHF-EUR exchange options and banks for cross-border workers.

Key points

Summer Holidays 2026: Rising Costs Due to War, but Some Destinations Become Cheaper

For cross-border workers residing in Ticino and working in Italy, it's important to consider the tax implications of summer holidays. For example, cross-border workers residing in Ticino and working in Italy may benefit from tax breaks for travel and accommodation expenses.

How to Take Advantage of Tax Breaks

1. Keep receipts: It's important to keep all receipts for travel and accommodation expenses to deduct them from your tax return. Travel and accommodation expenses can be deducted up to a certain limit, depending on your personal situation. For example, for a cross-border worker living in Lugano and working in Milan, train travel expenses can be deducted up to a maximum of 2,000 CHF per year, while for someone living in Mendrisio and working in Como, the limit is 1,500 CHF.

2. Consult an accountant: To make the most of tax breaks, it's advisable to consult an accountant. An accountant can provide personalized advice and help maximize tax deductions. For example, an accountant might advise you to deduct car travel expenses, which can amount to 0.70 CHF per kilometer, with a maximum of 10,000 km per year.

3. Use the tax calculator: The Frontaliere Ticino website offers a tax calculator that can help estimate tax deductions for travel and accommodation expenses. This tool can be particularly useful for cross-border workers who want to plan their holidays in a cost-effective way. For example, a cross-border worker living in Bellinzona and working in Varese can use the calculator to estimate deductions for car or train travel expenses.

Operational Checklist

• Required documents: Keep all receipts for travel and accommodation expenses, including air tickets, trains, hotels, and restaurants.
• Professional consultation: Schedule an appointment with an accountant for personalized advice.
• Planning: Use the tax calculator to estimate deductions and plan your holidays in a cost-effective way.

Comparisons Between Practical Scenarios

• Scenario 1: A cross-border worker living in Lugano and working in Milan who travels by train can deduct up to 2,000 CHF per year.
• Scenario 2: A cross-border worker living in Mendrisio and working in Como who travels by car can deduct up to 7,000 CHF per year (10,000 km x 0.70 CHF/km).

Legislation and Dates

• Effective date: The tax breaks have been in effect since January 1, 2023.

In conclusion, summer holidays in 2026 are expected to be more expensive due to the war in Iran and the consequent blockade of the Strait of Hormuz. However, there are still opportunities to save, such as booking well in advance, considering alternative destinations, and taking advantage of last-minute offers. For cross-border workers residing in Ticino and working in Italy, it's important to consider the tax implications of summer holidays and take advantage of the available tax breaks.

Source: tio.ch