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Digital Transformation, Affordability, and Sustainability to Define Travel in 2025: Traveloka President

by Alice

The global tourism industry is set to grow by 4.3% in 2025, fueled by changing travel trends and rising demand for international trips. To keep up, domestic tourism operators must focus on promoting local attractions and delivering personalised, value-driven experiences that meet evolving traveller preferences and support sustainable growth.

According to Traveloka, a leading travel platform in Southeast Asia, three key trends—digital transformation, affordability, and sustainability—will shape the industry and cater to the needs of Asia-Pacific (Apac) travellers, including Malaysians.

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Digital Tools Take Center Stage

Traveloka president Caesar Indra highlighted that Apac and Malaysian travellers are increasingly relying on digital tools for trip planning. Data shows that 52% use social media, 50% turn to travel apps, and 49% utilise platforms like Traveloka. This underscores the growing demand for seamless, tech-driven travel solutions.

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Affordability Remains a Priority

Cost is a major factor for travellers, with 46% prioritising affordability. Promotions for lesser-known destinations also influence 39% of travellers. Meanwhile, 82% of Malaysians are open to eco-friendly travel, but barriers like cost and accessibility need to be addressed to encourage wider adoption of sustainable practices.

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Domestic Travel Gains Momentum

Traveloka’s recent white paper reveals that 37% of Malaysians prefer domestic travel, driven by affordability, convenience, and safety. To capitalise on this trend, Caesar emphasised the need for tourism operators to invest in localised digital platforms, offer visible sustainable travel options, and design value-driven experiences that align with traveller expectations.

Boosting Domestic Tourism

To stimulate domestic tourism growth in 2025, Caesar suggested that operators focus on showcasing local attractions and providing personalised, value-focused experiences. Partnerships with eco-friendly hotels, such as those certified by the Global Sustainable Tourism Council, and collaborations with local communities can create authentic, sustainable travel opportunities.

Overcoming Barriers to Sustainability

The white paper also identified cost and difficulty in finding sustainable options as the main barriers for Apac travellers. Competitive pricing and improved accessibility for eco-friendly alternatives will be crucial to driving adoption. For example, bundling accommodations, transportation, and activities into affordable packages can cater to price-sensitive Malaysian travellers. Promotions for off-peak travel and loyalty programmes can further encourage repeat visits.

Personalised Promotions Drive Engagement

With 39% of travellers willing to explore new destinations if deals are compelling, Caesar stressed the importance of personalised promotions. Using data analytics to target the right audience and timing can lead to higher conversions, foster loyalty, and maximise returns.

Streamlining Payments

Payment preferences vary across Apac due to cultural differences and technological adoption levels. Caesar noted that understanding customer behaviour and offering tailored payment solutions—such as buy-now-pay-later, digital wallets, and QR code payments—can enhance customer experience, build trust, and drive engagement.

Challenges Ahead

Looking ahead to 2025, Caesar identified several challenges for the Malaysian and Apac travel markets, including varying levels of digital maturity, balancing domestic and international travel preferences, and the cost of sustainable options. He believes that focusing on localised, affordable offerings and leveraging technology for personalised experiences will help operators navigate these challenges successfully.

About Traveloka

Founded in Indonesia in 2012, Traveloka has expanded to Thailand, Vietnam, Singapore, Malaysia, Australia, and the Philippines. The platform offers 24/7 support in local languages and accepts over 40 payment methods. With nearly 140 million app downloads and 50 million monthly active users, Traveloka is one of the region’s most popular travel apps.

By adapting to these emerging trends, travel operators can better meet the needs of modern travellers and remain competitive in a rapidly evolving industry.

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