Rethinking tourism in the era of expensive fuels

Saturday, 25 April 2026RSS

Although not the most visible aspect of the sector, tourism is one of the industries most dependent on fossil fuels. Rising oil prices are already impacting the sector, with airlines signaling fare increases. Under Portuguese law, travel agencies may pass on some of these cost increases to consumers, provided it is stipulated in the contract and does not exceed 8% of the total price. This situation presents a dilemma for agencies between protecting their margins or absorbing costs to maintain customer loyalty. Furthermore, the era of low-cost travel may be ending due to energy costs, labor shortages, and a shift in traveler priorities toward sustainability. For Portugal, this highlights the vulnerability of its peripheral location and reliance on air travel, suggesting a need to pivot from a volume-based tourism model to one focused on value.

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