All eyes on Asia: The next travel powerhouse reshaping travel spend
In 2024, Asia-Pacific contributed 51.2% of global passenger traffic growth, with travel spend in some markets on track to hit record highs
ASIA is setting the stage for the next era of global travel growth. Trends like the White Lotus effect may spark short-term travel spikes, but Asia’s momentum runs far deeper.
From Singapore’s recent S$5 billion top-up to expand Changi Airport to Vietnam’s ambitious US$67 billion high-speed rail project, the region is making bold moves that signal an unprecedented acceleration in travel.
But where exactly will this growth come from, and what opportunities should businesses prepare for?
For years, global travel trends were heavily influenced by countries like the US, while China dominated the spotlight in Asia. Today, the balance is shifting. Asia is not just leading global travel growth; it is reshaping how and where travel dollars are spent.
In 2024, Asia-Pacific contributed 51.2 per cent of global passenger traffic growth, with travel spend in some markets on track to hit record highs.
Fuelling this transformation is a convergence of demographic shifts, emerging markets and surging intra-regional travel. These forces will shape the next phase of travel spending growth in 2025 and beyond.
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Asia’s travel renaissance is no longer on the horizon – it is here, in full force.
The demographic engine: Emerged and emerging spenders
Travel spend in Asia is showing no signs of slowing. Already accounting for nearly a third of credit card expenditure, it ranks as the second-highest annual spend category.
A key driving force is Asia’s middle class. While growth is expected to taper, the region’s middle class remains the global leader by size, with large populations in China, India and Indonesia.
Despite increasing value consciousness, travel remains a priority and one of the most resilient forms of spending – reinforcing the middle class as a robust engine of travel spend in the region.
Asia’s demographic make-up is also uniquely dynamic – home to a rising wave of young explorers and a growing population of seasoned spenders. Travel is a defining lifestyle choice for millennials and younger generations keen to explore the world and their cultural roots – groups that already account for half of Asia-Pacific consumers.
Meanwhile, Asia’s ageing population, set to comprise a quarter of the region’s population by 2050, are embracing wellness and luxury travel experiences, leveraging leisure time and disposable income.
South-east Asia: The new epicentre of travel growth
South-east Asia is fast becoming an emerging powerhouse with power spenders. While China and India remain dominant forces in Asia’s travel story, annual travel spend in countries like Singapore, Malaysia and Thailand are quickly outpacing Asia-Pacific’s average of US$4,763 per person. In fact, Singapore’s figures are more than double that, at US$10,619.
Additionally, five South-east Asian markets ranked among the top 10 fastest-growing markets in passenger traffic last year. Recognising the changing currents, governments across the region are responding with ambitious investment strategies.
Countries like Vietnam and the Philippines are investing billions in upgrading their airports, while high-speed rail projects in Indonesia and Thailand are transforming regional connectivity.
Visits to Priority Pass’ network of airport lounges and travel experiences also tell a compelling story, with global visits to our South-east Asia network of airport experiences surging by 41 per cent year on year in 2024. The data underlines the region’s increasing draw for international and regional travellers alike.
South-east Asia’s travel boom and investments are significant, and a direct reflection of consumer preferences and spending patterns. As travel spend continues to grow, global brands are being presented with ever-increasing opportunities throughout the region.
The new realities of intra-regional travel
Asia’s increasing influence over global travel trends becomes even more interesting when viewed through the lens of political shifts, economic fluctuations and tightening regulations, all of which are expected to reshape global mobility.
However, Asia is uniquely equipped to withstand these external pressures, with well-established travel hubs like Singapore and Hong Kong; emerging hot spots in Vietnam and the Philippines; and enduring giants like China and India.
Across this diverse ecosystem, Asia provides a broad spectrum of experiences at different price points, poised to capture the ebb and flow of traveller demands. Visa barriers are also easing across the region, while airlines are capitalising on the opportunities by expanding intra-Asia connectivity and their fleets. Boeing, in particular, is set to almost quadruple its South-east Asia fleet over the next 20 years.
As global uncertainties prompt shorter trips, intra-regional travel is poised to become a stable, resilient engine for sustained travel spending in the coming years.
Travel is here for all
Asia’s travel growth could not have come at a better time. Customer expectations are higher than ever, and brands face new challenges to capture and retain their market share. As Asia cements its position as the next travel powerhouse, new opportunities are emerging – not just for travel and hospitality brands, but for players across various industries, such as financial services and beyond.
The shift is clear: gone are the days of material spending. We are now in a “transformation economy”, where consumers are focused on transformative experiences that impact their lives beyond the moment of consumption. Given the heightened focus on experiential rewards over rational ones – such as points or cashback – brands have an opportunity to rethink their customer engagement strategies.
For instance, establishing stronger strategic collaborations with adjacent partners to create pathways to aspirational travel experiences will resonate with target audiences, and drive long-term brand loyalty with today’s consumers.
All eyes are on those who can ride the wave of Asia-Pacific’s travel spending boom, and help shape its next chapter.
The writer is global chief commercial officer and Asia-Pacific executive chair, Collinson International
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