Across the board, consumers are becoming more selective when planning their 2026 travel, according to new research from YouGov.
The UK-based market research firm’s assessment of international travel landscape across APAC markets found travellers are ready to compromise – whether on destination choice, transport choice or accommodation level – as economic pressures weigh on household budgets.
“2026 will be the year of budget friendly holidays, and brands will need to think very carefully about how they deliver value,” said Angela Smith, head of client growth for Asia Pacific at YouGov.
Destination first, but flexibility grows
Across markets, destination choice has emerged as the most common point of compromise, ahead of accommodation. Yet YouGov notes the bigger question for most travellers is not whether they will travel in 2026, but how – particularly when it comes to airlines and lodging.
In Singapore, where only Gen Z & millennial travellers expect to book more overseas travel this year than in 2025, 20% said they will compromise on their preferred destination this year, while 15% will downgrade the quality of accommodation to save money.
When asked which destinations offer the best value for money this year, perceptions varied by market. Travellers in Hong Kong and Indonesia both ranked Japan highest, while Singaporeans opted for Malaysia, Japan and China.
Some destinations are perceived to offer less value in 2026 than previously. For Thai travellers, South Korea, Australia, Singapore and India are seen to be less attractive due to rising prices.
Where value lies
These shifting perceptions are already influencing travel patterns. Budget airlines are tipped to be the biggest winners as travellers seek to stretch their budgets further.
Hong Kong travellers stand out: 40% said they are likely to switch to a budget carrier, the highest proportion among markets surveyed. This reflects a more deliberate approach to travel planning, with travellers booking earlier and becoming more selective about destinations.
Singaporeans, on the other hand, are the least likely to switch to budget airlines to save money. Instead, they adjust in other ways to “make the trip work” – booking earlier, adjusting travel dates, shortening stays and being more selective about destinations.
Rising costs
Rising costs remain a key concern.
In Singapore, nearly two thirds of respondents in Singapore blamed rising travel costs for impacting their 2026 travel intentions, while only 13% said price hikes would make no difference to their travel plans.
Elsewhere, economic uncertainty plays a bigger role. One in two travellers in Indonesia and more
than one in three in Hong Kong blamed economic uncertainty for their reluctance to leave home.
Rising travel costs were less of a factor inhibiting international travel in Hong Kong, only one in 10
offering this as a reason to stay in the city.
Travellers from Hong Kong and Indonesia are also looking at other ways to trim travel costs in 2026. Two thirds of those in Hong Kong will be downgrading their accommodation, and 51% of Indonesian travellers will be bypassing high-end restaurants for cheaper dining establishments.
This article was first published in Travel Weekly Asia January-March 2026 issue. Click here to read more from this issue.