Jan 19, 2025

20-01- 2025 07:00 AM KUALA LUMPUR: With the global tourism industry projected to grow by 4.3% in 2025, driven by shifting travel trends and increasing demand for cross-border travel, domestic tourism operators must prioritise initiatives that showcase local attractions and deliver personalised, value-driven experiences to align with evolving traveller preferences and drive sustainable growth. According to Southeast Asia’s leading travel platform, Traveloka, digital transformation, affordability and sustainability are key trends that will drive the industry to meet the evolving needs of Asia-Pacific (Apac) travellers, particularly Malaysians. Traveloka president Caesar Indra said Apac and Malaysian travellers are increasingly relying on digital tools for travel planning, with 52% using social media, 50% turning to travel apps and 49% utilising platformssuch as Traveloka, highlighting the growing demand for seamless, tech-enabled travel solutions. “Affordability remains a priority, as 46% of travellers prioritise cost, and promotions for less-considered destinations influence 39%. “Additionally, while 82% of Malaysians are open to eco-friendly travel, barriers such as cost and accessibility must be addressed to encourage greater adoption of sustainable practices,” he told SunBiz. Traveloka’s white paper, published recently, showed that 37% of Malaysians prioritise domestic travel, driven by factors like affordability, convenience, and safety. “These trends emphasise the importance of investing in localised digital platforms, offering practical and visible sustainable travel options, and designing value-driven experiences that align with travellers’ evolving expectations. “By adapting to these shifts, businesses can better meet travellers’ needs and remain competitive in an ever-changing environment,” Caesar said. To stimulate domestic tourism growth in 2025, he said, domestic tourism operators should concentrate on initiatives that showcase local attractions while offering personalised, value-focused experiences that align with changing traveller preferences. He added that travel businesses can partner with eco-friendly hotels, such as those certified by Traveloka’s partner, the Global Sustainable Tourism Council, and collaborate with local communities to create authentic, sustainable travel experiences. Additionally, the white paper indicates that travellers in Apac cite cost and difficulty finding sustainable options as the primary barriers to choosing them. “Providing competitive pricing and enhancing accessibility for eco-friendly alternatives will be crucial in driving greater adoption among travellers. “Our white paper indicates that 37% of Malaysians prioritise domestic travel, influenced by affordability, convenience, and safety factors. With 46% of Malaysians saying the price is a key consideration when choosing accommodation, bundling domestic accommodations, transportation, and activities into affordable packages can cater to the needs of Malaysian travellers. “Offering promotions for off-peak travel and loyalty programmes can further incentivise repeat visits,” Caesar said, adding that promotions and discounts are key to capturing Malaysia’s price-sensitive travellers. Based on the white paper, 39% are willing to explore destinations they might not normally choose if the deals are compelling. “To stay competitive, travel operators must go beyond generic offers by using data analytics to pinpoint the right audience and timing. Personalised, value-driven promotions tailored to traveller profiles can drive higher conversions, foster loyalty, and maximise returns,” Caesar said. When asked to elaborate on travel operators exploring new options or technologies to streamline the payment process, Caesar said payment preferences across the Apac region vary widely, driven by cultural differences and differing levels of technological adoption. “It is important to understand customer behaviour and to tailor payment solutions accordingly. We believe this will enhance customer experience, foster trust, and drive higher engagement and loyalty. For travel businesses, the key goes beyond offering a range of options like buy-now-pay-later, digital wallets, and QR (quick response) code payments,“ he said. Regarding the challenges industry players and operators anticipate in the Malaysian and the broader Apac travel market in 2025, Caesar said varying levels of digital maturity, balancing domestic and international travel preferences, and the cost of sustainable options require innovative solutions. “By focusing on localised, affordable offerings and leveraging technology to create personalised experiences, operators can successfully navigate these challenges in 2025,” he added. Founded in Indonesia in 2012, Traveloka has expanded its operations to Thailand, Vietnam, Singapore, Malaysia, Australia and the Philippines, providing 24/7 support in local languages and acceptance of over 40 payment methods. With nearly 140 million app downloads and nearly 50 million monthly active users, Traveloka is one of the region’s most popular travel apps.