Key Insights
International tourist arrivals reach 120 million, signalling a strong market recovery and structural optimisation
Southeast Asia’s travel sector is demonstrating a robust recovery and long-term growth potential. In 2024, international visitor arrivals reached 120 million, driven primarily by the return of Asian tourists, while long-haul markets such as Europe, the US, and the Middle East also saw rapid recoveries. Cross-border short-haul travel within the region remains highly active, and both domestic and outbound tourism show significant potential. The recovery extends beyond visitor volume, also reflecting an upgrade in consumption patterns and a restructuring of the supply chain. Meanwhile, the expansion of Asian enterprises overseas is fuelling business travel demand, creating new growth opportunities for international travel and mobility companies entering local markets.
ASEAN passenger flights up 7.7% YoY in Q1 2025, with LCCs accounting for two-thirds of international capacity
The Southeast Asian aviation market continues to expand rapidly under the leadership of low-cost carriers (LCCs), though market concentration remains low — each of the top 10 airlines holds only 3–6% of total capacity — highlighting the value of OTAs in aggregating long-tail carriers. Leading LCCs are enhancing profitability through direct sales channels and ancillary services, while actively building broader user ecosystems. Local OTAs are evolving from simple booking tools into super apps, serving as complementary drivers of airline growth.
83% of consumers agree that “travel expenses are becoming a more critical consideration”
Travellers today are increasingly budget-conscious, with price sensitivity emerging as one of the most important factors shaping destination and product choices — a key advantage for Southeast Asia, where travel remains cost-competitive. At the same time, despite tighter budgets, consumers continue to value quality and are willing to pay a premium for high-quality experiences. Travel and OTA providers must adopt more nuanced pricing strategies to stay competitive.
40.7% of hotel bookings now occur within three days of travel
Visa-free and visa-on-arrival policies across Southeast Asia have lowered barriers for international visitors. The widespread adoption of mobile internet access and digital payments, together with the rise of “Buy Now Pay Later” (BNPL) and instalment options, have shortened consumer decision-making cycles and made last-minute travel the new normal.
Long stays of over 28 days now account for 11.6% of trips
Travel motivations are shifting from short-term sightseeing to more in-depth, experience-based stays, often blending leisure with remote work, wellness, or long-term living. The share of stays exceeding 28 days has risen from 7.7% in 2019 to 11.6% in 2023, indicating that travel and OTA providers should design scenario-based products tailored to travellers’ evolving travel purposes and experiential expectations.
Southeast Asia: tourism in its DNA, driving the next wave of growth
With its tropical landscapes, rich cultural heritage, and strategic location, Southeast Asia has long stood as one of the world’s most captivating travel destinations. From Thailand’s resort islands and Cambodia’s heritage sites to Singapore’s business hubs and Indonesia’s nature-based destinations, the region offers a highly diverse and complementary mix of tourism resources. Supported by steady economic growth, ongoing infrastructure upgrades, and deepening digital transformation, Southeast Asia’s travel and tourism industry is entering a new phase of rapid development. On the global tourism stage, the region is not only a prime destination for leisure and cultural travel but also a strategic battleground for international hotel chains and travel companies.
As international arrivals surge and traveller profiles evolve, Southeast Asia faces both opportunities and challenges in reshaping its tourism landscape. How are visitor expectations changing? What new dynamics are redefining the market? And how are OTAs and ecosystem service providers responding to this wave of transformation?
Southeast Asia’s travel industry: rebound, resilience, and opportunities
A rapid recovery led by the return of international visitors
Southeast Asia’s international tourism market is experiencing a strong rebound, with many destinations approaching or even surpassing pre-pandemic peaks. According to the World Travel & Tourism Council (WTTC), the region welcomed approximately 120 million international visitors in 2024, accounting for around 8.4% of global arrivals — ranking third in Asia, behind only China and Japan. Key destinations such as Vietnam and Malaysia have seen international visitor numbers recover to over 90% of 2019 levels, underscoring the region’s accelerated return to growth.
Recovery rate of international tourist arrivals and tourism industry in Southeast Asia, 2024 vs. 2019
Source: National Tourism Departments
China has re-emerged as a dominant source market — often ranking as the No. 1 or No. 2 inbound market for most Southeast Asian countries. The combination of visa facilitation policies and resumed flight capacity has made regional travellers a major driver of revenue recovery across the region. At the same time, the return of long-haul visitors from Europe, the United States, and the Middle East has diversified Southeast Asia’s inbound mix, enhancing the region’s resilience against single-market dependence. Intra-regional travel has also become increasingly active, with short-haul cross-border tourism between markets such as Malaysia–Singapore and Thailand–Vietnam seeing sustained momentum.
Distribution of Chinese outbound destinations, 2024
Source: China Tourism Academy
Supply chain transformation and the rise of diversified business models
Amid Southeast Asia’s rapid travel industry expansion, the supply chain is undergoing profound transformation. The rise of online channels and platform-based ecosystems has become a core driver of structural change. The widespread adoption of online travel agencies (OTAs) is accelerating digitalisation across the hospitality sector, enabling traditional hotels and small to mid-sized accommodation providers to gain visibility through smart pricing, direct connectivity, and digital payment solutions. As a result, market competition is becoming more transparent and standardised.
New traveller preferences—such as remote work, extended stays, and lifestyle-based travel — are fuelling the growth of emerging segments including homestays, serviced apartments, and shared accommodations. In the transportation sector, flight booking volumes have surged, with OTA platforms leveraging dynamic pricing, airline direct connectivity, and cross-border payment capabilities to improve distribution efficiency. “Flight + Hotel” bundling strategies are further strengthening user retention and engagement.
According to e-Conomy SEA 2024, the online travel market in Southeast Asia has fully recovered and surpassed pre-pandemic levels, with total GMV expected to reach USD 79 billion by 2030. Rising online penetration of travel products is accelerating the region’s overall digital travel experience.
Online travel GMV trends in six Southeast Asian countries
Source: e-Conomy SEA 2024
Online travel market size in six Southeast Asian countries, 2024
Source: e-Conomy SEA 2024
The travel supply chain is evolving from single-product offerings to holistic, experience-driven ecosystems. Integrated developments — linking resorts, retail centres, theme parks, and wellness facilities — are extending visitor stays and significantly boosting per-visitor spend. Cross-sector connections among dining, entertainment, transportation, and accommodation are giving rise to a comprehensive service chain that covers “eat, stay, travel, shop, and play”.
Destinations such as Bali (Indonesia) and Phuket (Thailand) are pioneering hybrid models that integrate resort leisure, wellness, and eco-tourism to create high-end, multi-faceted experiences. Meanwhile, Singapore and Malaysia are leveraging theme parks and MICE (meetings, incentives, conferences, exhibitions) tourism to drive hotel and ancillary service growth, showcasing closer industry collaboration. At the same time, OTAs are expanding beyond core booking services — from flight and hotel bookings to value-added services such as travel insurance, financing, and instalment payment options — providing users with more complete one-stop travel solutions while generating new revenue opportunities.