By Audrey Tan
With travel bans lifted worldwide post-COVID-19, throngs of people are reclaiming the joy of travel. Driven by a desire to make up for lost time, tourism figures are returning close to pre-pandemic levels, and airports are returning to their usual buzz.
As the year unfolds, the tourism scene in Asia-Pacific reflects both cautious optimism and noticeable shifts in traveller behaviour, hinting at a promising outlook for the sector.
So, what are the driving forces behind these new travel trends? Which destinations are top of APAC travellers’ bucket lists this year? Which destinations are travellers avoiding and why? Find out more here!
The Rise Of Staycations
Local tourism is rising as APAC consumers increasingly choose to explore their own backyard, favouring staycations over trips abroad. Although staycations became more popular during the pandemic, research shows they are likely here to stay as part of a new industry norm.
Data shows that many consumers in India (94%) and China (93%) are planning staycations, with residents in Singapore (72%) and Japan (59%) considering the same.
This is due to tourists prioritising safety, ease, comfort, and relaxation during their trips. The volatile economic landscape and increased travel expenses are other factors contributing to the preference for domestic travel.
A Love For Long-Haul
Meanwhile, international travel is poised for ongoing year-on-year expansion. Since the third quarter of 2023, there has been a 32% increase in APAC consumers (excluding China) purchasing vacations abroad within the last 3 to 6 months.
Australian travellers are even more keen to go overseas, with a remarkable 43% jump. Unsurprisingly, 82% of Singaporean travellers also intend to go abroad. Meanwhile, only 19% of Japanese consumers plan to travel internationally in the next year.
Tech-Integrated Travel Experiences
Technology is more advanced today than ever, and many travellers like to leverage technology and digital tools to enhance their travel experiences. From smart city initiatives in technology-forward countries such as Singapore and South Korea to digital nomad hubs in Thailand and Vietnam, technology continues to revolutionise how we explore, connect, and experience the world.
What’s more, the new generation of travellers value the convenience of mobile booking. While older generations may still opt for pre-made packages by travel agencies, younger tourists prefer to spontaneously make their own plans, all from their mobile.
Many tour operators in APAC lag behind in this regard. The industry in the region needs to ensure services are bookable online, as this can present a significant opportunity to stand out against the competition.
Chinese Catch The Travel Bug
Over the past decade, outbound Chinese tourists have become one of the most significant factors in the growth of the APAC travel industry. With a population of over 1.4 billion people and an ever-growing middle class, more and more people can afford to take vacations outside their country. While COVID put a brief stop to this trend, since China re-opened its borders and relaxed its visa policies in 2024, we can expect a massive surge of outbound tourists from the country in the coming years.
Like other target groups, Chinese tourists increasingly prefer to travel independently, prompting a recent decline in group bookings. While Western tourists might travel to APAC for the weather and the beach, those travelling from China increasingly value heritage tourism and are submerging themselves in local cultures and cuisines. This presents a great opportunity, especially for diaspora Chinese communities who likely already speak the language.
More Young Travellers
Among the most critical groups driving the post-COVID travel bounceback are Millennials and Gen Z. Unlike their older counterparts, young travellers place high value on experiences. They’re more likely to stay in cheaper accommodation and spend money on experiences and tours than splurge on an expensive resort vacation.
Additionally, they highly value “instagrammable” vacation spots – places that look good when shared on social media. Operators should keep these trends in mind and cater their tours to smaller, more adventurous groups of travellers.
Sustainable Travel
Another trend primarily driven by Millennials and Gen Z is sustainable travel. More and more people are concerned about the long-term consequences of climate change and want to minimise their carbon footprint.
According to Booking.com, 95% of Indian travellers state that sustainability is an important factor when planning their vacation, and 62% state they feel guilty when making less sustainable travel choices. Meanwhile, 75% of Singaporeans aim to consider the environmental impact of their travel plans this year.
This presents a significant opportunity for operators. Gearing travel packages toward sustainable travel might help them gain an edge over the competition.
These are the most surprising and significant trends shaping APAC travel right now. Sustainable, individual travel is on the rise, while tour groups and pre-planned packages are slowly phasing out.
If you work in the industry and want to be successful, ensure your business is ready to handle the challenges of the next generation of travel.
Let us know in the comments below which trends you have noticed or which impact you the most.