Travel TrendsRecovery in the tours and experiences sector is very much driven by younger travellers and their booking habits.

6 trends driving recovery of APAC’s tourism industry

Arival has highlighted six key factors that are shaping travel experiences in the Asia-Pacific region.
Arival has highlighted six key factors that are shaping travel experiences in the Asia-Pacific region. Photo Credit: Adobe Stock/ME Image

As the travel industry looks towards recovery in the Asia-Pacific (APAC) region, Arival has identified six key trends that reflect the changing preferences and behaviours of travellers.

1. Uneven recovery across APAC

The pace of recovery varies significantly across the APAC region. Some markets, including Southeast Asia, Korea, and Australia, are experiencing a strong comeback of travellers. However, other source markets such as China and Japan are slower to return.

2. Intra-region travel first, then comes long-haul travel

While intra-regional travel has started to rebound, there is also growing demand for long-haul destinations, particularly Europe. Operators and resellers are noticing increased interest in European travel experiences.

3. Return of Chinese market remains a question

China has been a significant contributor to the growth of the travel industry prior to the pandemic. While domestic travel has largely recovered in China, international outbound travel from the country has been slow to resume. Operators should focus on other source markets in the region while preparing for the expected return of Chinese travellers in the second half of 2023.

4. Recovery driven by younger travellers and their booking habits

Younger generations, specifically Gen-Z and younger Millennials, are driving the recovery in Asia. Their preferences and behaviours are reshaping the industry, as they prioritise experiences over material possessions. Operators can cater to this experience-hungry demographic by offering small-group and immersive experiences that provide unique and memorable interactions. Mobile booking is crucial for this tech-savvy audience, who seek convenience and shareable moments on social media platforms like Instagram and TikTok.

5. 3x growth in market share for mobile booking and online marketplaces

With younger travellers leading the rebound, mobile booking and online marketplaces are set to gain significant market share by 2025. Industry players have witnessed a remarkable growth in mobile bookings since the pandemic, emphasising the importance of being prepared for the mobile wave.

6. Small group and independent travel

Younger travellers are increasingly interested in independent and adventure travel experiences. This trend highlights the demand for small group tours, independent tours, outdoor adventures, and unique experiences that can be shared with family and friends.

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