Travel growth expected in Asia-Pacific despite cooling demands

Online travel agent Booking.com expects the Asia-Pacific region to see growth in bookings as we start to see stability in the global market. The company’s Managing Director for Asia-Pacific, Laura Houldsworth, said the company anticipated the growth might not be as fast as it has been because it’s starting to stabilize at a very high level.

Asia was up mid-teens year-on-year room night growth for bookings last year, driven by Chinese outbound travel, Europe was up low double digits, while the US market remained flat, according to the Booking Holdings Reports Financial Results for the fourth Quarter of 2023.

By contrast, Europe saw a 10% growth rate, while the US market stagnated. These trends are expected to persist this year, Houldsworth said.

“People are prioritising travel. It’s not seen as a luxury but a way of life and something they say they really need.”

She believes there is significant potential for growth in China’s inbound and outbound markets. Thailand emerged as the most popular destination among Chinese travellers on Booking.com’s platform, following the implementation of a visa-free scheme between the two nations.

However, she noted that nations such as Cambodia and Laos are still not attracting many Chinese visitors.

Houldsworth stated that the recovery rate of China’s inbound and outbound travel sector would hinge on the resumption of international flights and the Chinese economic slowdown, which could potentially hinder outbound tourism.

Despite regional travellers’ confidence in travel, economic factors pose a significant barrier to booking trips, Houldsworth said.

“We don’t expect people to stop travelling, but they may look to get more for their money.”

She noted an increasing trend of travellers from Thailand and other Asian markets seeking to visit less expensive destinations than their countries of residence.

Booking.com website users are extending their booking window in search of deals, anticipating lower prices for accommodation and travel. Houldsworth then clarified that travellers are not compromising on their choice of properties to save money. They are simply on the lookout for bargains, reported Bangkok Post.