Expedia Group says affluent Asian travellers will boost global travel industry
Expedia Group has published a study which highlights the preferences of the growing Asian middle class, expected to reach 3.5 billion people and makes up two-thirds of the world’s middle class by 2030.
The study provides travel industry professionals with the context to better serve the increasing number of mass-affluent travellers from Asia and tailor offerings to their preferences. Conducted in partnership with Atomik Research, the study surveyed 4,000 respondents across Asia (China, India, Indonesia, Singapore, and Vietnam).
Expedia chief commercial officer, Greg Schulze, said: “We’ve witnessed firsthand the remarkable growth of the Asian travel market and are committed to providing unparalleled insights and solutions to our partners. By leveraging our industry-leading technology, extensive global network, and deep understanding of traveler behavior, we’re able to deliver personalised experiences that resonate with Asian consumers. Our innovative platform empowers partners to reach travellers at every stage of their journey, from inspiration to booking and beyond.”
Key points of the study:
- Four in five (81 per cent) mass-affluent Asian Travellers report that travel is still a priority despite inflation
- On average, mass-affluent Asian travellers plan to visit four destinations over ten days for their next international trip, with Japan, the US, Canada, France, South Korea, Australia, and Germany leading the list.
- They plan to dedicate nearly a quarter of their income to travel in the next 12 months.
- Nearly half seek airline and room upgrades, with two in five opting for first class or business class seating.
Asian travellers expected to prioritise travel spending in 2025 despite inflation pressures
Through deals, discounts, and packages or a tendency to prioritise travel over other forms of discretionary spending, mass-affluent Asian consumers are finding ways to alleviate the impacts of inflations and keep room in their budget for travel.
These travellers plan to spend an average of 23 per cent of their income on travel in the next 12 months, and 81 per cent report travel is a priority despite inflation. Moreover, 39 per cent said they would prioritise travel over buying a new car over upgrading electronics, and close to 32 per cent on dining out.
Asian travellers expected to invest in long-haul trips, with multiple destinations stops
While many mass-affluent Asian travellers plan to visit other countries in the Eastern and Southeastern Asian regions, a significant number are drawn to international destinations farther afield. Overall countries such as Japan, the US, Canada, France, South Korea, Australia, and Germany are at the top of the list.
On average, these travellers plan four destinations over ten days for the next international trip. Interestingly, travel length and total destinations vary significantly across regions. Indian travellers plan for longer trips, averaging 14 days compared to Vietnam’s with the lowest length at eight days.
Indian travellers often plan for five or more destinations on their next international trip, while Singaporean, Chinese, Vietnamese and Indonesian travellers often report planning for four or fewer.
When it comes to travel planning, more than one in three respondents relied on travel agents, the majority (72 per cent) said they use platforms like Expedia when booking. They commonly cite using a travel app for booking hotels (73 per cent), booking flights (70 per cent) and finding activities or excursions (52 per cent).
This reliance on digital tools is further emphasised by the fact that 83 per cent of people in Asia-Pacific have a travel brand’s app installed on their device, and 36 per cent use the app regularly.
Asian travellers seek luxury travel experiences
The survey found that mass-affluent Asian travellers prioritise premium amenities and high-end accommodations, making these key factors for partners across the industry. To meet this demand, Expedia Group offers a wide range of tools and resources to help partners attract and convert these discerning travellers.
In terms of premium travel experiences on their next international trip, the vast majority (93 per cent) of travellers plan to pursue at least one or more of the following:
- 44 per cent seek airline upgrades
- 42 per cent pursue room and accommodation upgrades
- 52 per cent book a 4- or 5-star hotel
- 39 per cent book private tours or excursions
- 38 per cent book a seat in first class or business class
Despite regional variations, flight upgrades, premium accommodations, and exclusive experiences are top of mind. Chinese, Singaporean, and Vietnamese travellers strongly prefer gourmet dining, while Indian travellers favor first-class or business-class seats and Indonesian travellers desired private tours. Across the board, airline and accommodation upgrades emerge as the two most popular choices. All-inclusive packages are one of the most likely buys among travellers in India (61 per cent), Indonesia (61 per cent) and Vietnam (58 per cent).
Co-Director of the Centre for Enterprise Dynamics in Global Economies (C-EDGE) at the University of South Australia, Peter O’Connor, said: “The mass-affluent consumer market in Asia is rapidly emerging as one of the most crucial population segments to reach and serve. With their inclination towards long-haul trips and a preference for luxury amenities, they are poised to significantly impact the travel economy, as indicated by this research. Expedia Group’s latest insights highlight the growing demand for personalised and premium travel experiences among Asian middle-class travellers.”
Travel suppliers have a unique opportunity to anticipate their specific concerns and needs
Nearly half (49 per cent) of respondents feel some level of concern about understanding standard practices regarding local transportation, dining customs (43 per cent), proper greetings (41 per cent), and declaring baggage at customs (40 per cent). More than one in three (34 per cent) report the willingness to increase their spending to stay at a hotel with staff who speak their language.
While 75 per cent reported seeking deals, discounts, or packages for their next trip because of inflation, travellers still value luxury. Higher-spend priorities were luxurious room amenities (53 per cent), experiential excursions (52 per cent), cultural immersion (40 per cent), and a hotel with a Michelin chef (31 per cent).
Loyalty programs remain a significant draw for travellers. A vast majority (86 per cent) of respondents report belonging to one, with airline, hotel, and credit card loyalty programs equally popular. This presents a unique opportunity for tourism boards to promote their destinations to these loyal consumers, especially during the early planning stages, when 30% said they had no specific destination in mind, or only the country but not the city.
Email the Travel Weekly team at traveldesk@travelweekly.com.au
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