PARIS

Greg Abbott is planning his summer holiday with half an eye on the Iran war. He intends to stay closer to home in Europe and is lining up a plan ​B, wary of rising air fares and cancellations.

The 54-year-old Britain-based Australian is planning a cycling trip with friends in Austria, a festival in Barcelona and possibly ‌a yoga retreat in France. But he doesn't want to go too far and is keeping travel options open.

We'll almost certainly be doing short-haul Europe, and almost certainly be doing trains, because they run on electricity, said Abbott, head of operations for a broadcasting company, adding cost was a key factor against longer trips.

The prices are just crazy at the moment. Across Europe and beyond, tourists are reshaping plans in a world of $100 oil, tight jet ​fuel supply, higher costs and Middle East conflict disrupting popular routes. Many are booking later and building in flexibility.

We observe travellers becoming more cautious and deliberate, said Susanne Dickhardt, ​co-founder of camper van and motorhome hire firm Roadsurfer.

Most are adapting rather than cancelling, she said, staying nearer home, driving and choosing formats that ⁠keep costs down.

Tourism and aviation are among the sectors most exposed to the war. Slow-moving peace talks point to a prolonged stand-off, hitting Gulf airlines and popular hubs such as ​Dubai, while nearly doubling jet fuel prices.

You've got a war happening - a major war, said Jean-Francois Rial, CEO of tour operator Voyageurs du Monde, adding his firm had seen business drop around ​a quarter in March, easing to about a 10% decline in April.

People get nervous; they don't want to travel anymore.

Airlines warn profits are under pressure. Air France-KLM expects its jet fuel bill to jump by $2.4 billion this year, while Lufthansa and British Airways owner IAG see rises of about $2 billion.

U.S. low-cost carrier Spirit went bust this month, stoking fears others could follow. European budget carriers with thin margins and limited fuel hedging, such as Wizz ​Air and airBaltic, face challenges, though are less vulnerable than Spirit, said Rohit Kumar, vice president of corporate ratings at Morningstar.