Asian travelers are proving they are still eager to travel internationally, but many are adjusting how they spend their money as airfares remain high.
New forward booking data from AirAsia MOVE, the travel booking platform of AirAsia, shows travelers heading into the second half of the year are spending 35% more on flights than on accommodation. The trend suggests consumers are prioritizing reaching their preferred destinations while finding savings elsewhere in their travel budgets.
“The data suggests that travelers remain willing to invest in reaching their preferred destinations, while becoming more selective about where they stay,” AirAsia MOVE said.
The shift is reflected in hotel choices. Around three-quarters of all hotel bookings are now for three- and four-star properties, indicating travelers are moving away from premium accommodation while maintaining their travel plans.
The booking platform also reports growing confidence among travelers, with more customers making reservations at least 120 days before departure. Popular destinations across Asia include Indonesia, Japan, Malaysia, the Philippines and Thailand, highlighting continued demand for regional leisure travel.
Despite elevated ticket prices, travelers are becoming more strategic about when they book. According to AirAsia MOVE, two out of every five flight bookings are made between the 25th day of one month and the fifth day of the next, closely matching salary payment cycles across many Asian markets.
Destinations within four-hour flight
The company said many travelers research destinations well in advance but delay purchasing tickets until payday, reflecting a more disciplined approach to discretionary spending.
AirAsia MOVE expects this cautious behavior to continue through the remainder of the year as airlines continue to face cost pressures, including jet fuel prices that remain above the $100-per-barrel mark.
Short-haul international travel is emerging as another major trend. Travelers are increasingly choosing destinations within a four-hour flight, allowing them to maximize both their budgets and vacation time.
According to the platform, bookings for overseas flights of less than four hours have increased by 14%. If the trend continues, destinations with extensive regional air connectivity stand to benefit the most.
Younger generations continue to fuel the recovery in leisure travel. Millennials aged 30 to 45 account for 43% of all bookings on the AirAsia MOVE platform. Combined with Generation Z travelers, they represent around two-thirds of all reservations.
The findings reinforce the growing view that travel has become a lifestyle priority for younger consumers, who continue to allocate spending toward experiences even as they carefully manage rising travel costs.
