Monday, December 1, 2025

New Agoda report shows Asia is driving the next wave of global travel growth

The newly released Agoda 2026 Travel Outlook Report shows that global travel behaviour in the year ahead will be shaped predominantly by the expectations and habits of Asian travelers. The report surveys 3,353 respondents across nine Asia Pacific markets and highlights a regional shift toward high value short haul experiential travel supported by seamless digital planning and frictionless cross border movement. For travel agents tourism boards hotel partners and experience providers the next 12 months present a clear commercial opportunity for those who adapt offerings to match the new demand patterns.

Value is driving volume and trip frequency

Price sensitivity is the primary trigger for accommodation decisions. Survey data shows that 39 percent of travelers consider price the most important factor when booking ahead of location and reviews. Seventy three percent want hotel rates under 100 USD per night and in Malaysia Vietnam and Indonesia most travelers look for stays under 50 USD per night. This trend does not reduce spend. Instead it fuels more trips. Forty percent plan to allocate six to ten percent of their annual income to travel and 35 percent intend to take four to six trips in 2026 with microbreaks of one to three nights becoming a frequent behaviour.

Travel sellers who package competitively priced stays with strong incentives and clear inclusions will gain from higher booking frequency and more repeat business across the year.

Domestic travel continues to surge and redraws the tourism map

Thirty five percent of Asian travelers expect to travel mostly within their home country in 2026. Secondary destinations are benefiting most from this shift. Agoda data shows that accommodation searches in secondary cities have grown 15 percent faster than in traditional hubs in the past two years and now make up 34 percent of total APAC search volume. Takamatsu and Matsuyama in Japan and the Riau Islands in Indonesia are already showing the highest year on year growth.

Governments are steering demand intentionally. Thailand’s Grand Discovery initiative Indonesia’s Tourism 5.0 roadmap Malaysia’s VM2026 campaign Japan’s regional promotions and India’s UDAN air connectivity programme are all increasing access and visibility for lesser known destinations. Agents have a chance to build new itineraries in locations with rising demand but lower competition.

Experiences define destination choice

Relaxation remains the top travel driver but culinary travel and cultural exploration now round out the top three motivators for Asian travelers. Food led tourism is accelerating especially from Taiwan Vietnam and South Korea. Interest in events and major gatherings is another urgent trend. Lady Gaga’s Singapore dates triggered a 358 percent spike in searches while BLACKPINK’s Bangkok shows saw accommodation searches for the city rise by 18 percent including a 266 percent jump from Vietnam and 107 percent from Malaysia.

Screen inspired travel is also shaping demand. Locations tied to film and TV releases in Thailand and Korea are showing increased search volume. India’s spiritual travel segment is booming with Allahabad recording a 233 percent surge ahead of the Mahakumbh Mela and Holi driving a 25 percent year on year lift in domestic searches. Experiential itineraries with timed activities access to events and curated food or culture components offer strong conversion potential across segments.

Convenience is unlocking intra Asia travel growth

Asia is systematically reducing friction across air travel infrastructure visa entry and digital payments. APAC airlines are scheduled to take delivery of approximately 615 new aircraft in 2026 which will further expand regional seat capacity and direct route connectivity. Visa waivers are proving immediately effective. Malaysia Thailand the Philippines and Sri Lanka have all eased restrictions for Indian travelers and Agoda search data reflects overnight double digit jumps from India when each waiver was introduced.

Cross border digital payments continue to eliminate barriers at destination. Instant payment linkages within ASEAN and QR interoperability allow travelers to use their home banking apps abroad without cost or complexity. These structural improvements are expected to support growth in both leisure and business travel with 76 percent of business travelers intending to extend corporate trips for leisure in 2026.

AI is becoming the new standard travel tool

Sixty three percent of Asian travelers say they are likely to use AI to plan their next trip and 44 percent state they somewhat or completely trust AI generated information. The top requested AI use cases are attraction recommendations personalized itineraries and destination suggestions. The report confirms that 2026 marks a transition from AI as a simple assistant to autonomous itinerary management where changes such as flight delays can trigger automatic reoptimisation of hotel check in airport transfers or restaurant bookings.

For the travel trade this means digital credibility and data quality are becoming commercially critical. Accommodation listings that answer common guest questions and experience providers that digitise ticketing and availability will be more discoverable across online platforms and AI layers.

What the report means for travel agents and suppliers now

The report highlights a shift that rewards early movers. Demand is strongest among travelers who want good value authentic experiences ease of booking and smart digital support. To win business in 2026 travel partners should prioritise

• Building programmes in domestic and regional secondary destinations before they peak
• Packaging accommodation with timed food cultural or event experiences to increase conversions
• Maintaining updated digital inventory reviews and content to surface within AI travel recommendation systems
• Adding flexible payment and cancellation options for budget driven and family segments

Asia’s travelers are setting the pace. The trade partners who align product content and digital capability with these behaviours will be positioned to capture the next wave of regional and global growth.

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