Darryl is the founder and CEO of LFG, which is like the "Spotify for travel" and is an Antler program grad.
Previously he held positions in Grab and was Chief of Staff at Quqo.
Guest Author: Darryl Han
Remember when Covid-19 was thing?
Remember when traveling basically stopped for a year? Or was it two…?
I’m sure you’ve had your ‘revenge’ travel since then.
In fact most of the world has…
After a few tough years, international tourism as a whole is finally bouncing back to pre-pandemic levels, with Asia Pacific (APAC) looking to regain top spot as the world’s largest regional travel market by 2025.
In 2023, a whopping over 516 million tourists visited the APAC region. Interestingly, Gen Z and Millennials are hungry for travel more than ever – making up a significant 50% of those APAC travelers.
Asia Pacific: Home to half of the world’s top 10 hottest destinations
APAC is on fire (not literally, and putting climate change aside), having five of the world’s top ten trending tourist destinations (based on the increase in tourism transactions over the last year, ending March 2024).
Japan takes the #1 spot globally, welcoming an impressive over 3 million international visitors in March 2024 alone, a record high even before peak travel season. The favorable exchange rate, the lowest since 1990, likely fueled this boom.
The land down under, Australia (my home), is on an uphill climb to the top. If Australia’s natural landscape, Tiffany-blue oceans, and kangaroos aren’t enough to attract global tourists, World Economic Forum’s latest ranking has been named Australia of the top five countries for tourism and travel in 2024.
Thailand is also expected to fully recover its pre-pandemic tourism levels this year, with travelers flocking to its beautiful beaches, vibrant culture, and affordable prices (and of course, for the Michelin street food too).
Southeast Asia on the rise!
Southeast Asia, in particular, is a hit with Gen Z travelers, who love its affordability, stunning natural beauty, and cultural experiences. From the colorful lanterns of Hoi An in Vietnam to the Songkran ‘water splashing’ festival in Thailand, there’s no shortage of ‘Instagramable’ moments to be had.
And with its rich culture and friendly locals, it’s no wonder Southeast Asia is a favorite among young travelers.
Malaysia emerged as the most popular destination in Southeast Asia last year, welcoming 29 million visitors and claiming the top spot from Thailand, which held the title pre-Covid.
In an effort to attract even more foreign tourists, Southeast Asian countries have been competing to offer the most flexible immigration policies, since 2023.
Malaysia, for example, began allowing 30-day visa-free entry for citizens from mainland China and India from December 1, mirroring a similar policy in Thailand, while Vietnam granted three-month tourist visas for citizens from all countries (finally) starting mid-August.
What about domestic APAC travelers themselves?
APAC internal travel has rebounded more quickly than international. For example, top destinations for Singaporeans include Bangkok, Kuala Lumpur, and Perth.
Millennials and Gen Zs are also increasingly opting for shorter, intra-regional trips, with 60% preferring to travel domestically and 30% within the Asia Pacific region, according to Klook survey report.
Japan, Thailand, and Singapore are the top three destinations on their wish lists, with a growing desire to explore new experiences and cultures.
What this means for travel businesses and startups?
- Travel is a right, not a want!The booming popularity of the Asia Pacific and Southeast Asia as top travel destinations presents a melting pot of opportunities for travel businesses and startups. This isn’t just an opportunity; it’s a call to action. And to thrive in this vibrant market, businesses need to understand and adapt to the evolving travel preferences of different generations.
- Understand that different generations travel differently
Each generation has its own way of exploring the world. Millennials and Gen Z travelers are often on the hunt for adventure and those perfect Instagram shots. Think of rooftop bars in Bangkok, hidden waterfalls in Bali, or street food tours in Hanoi. On the flip side, Baby Boomers and Gen X might be more interested in cultural experiences and comfort – envision luxury cruises through Halong Bay or guided historical tours in Kyoto. The key is to identify your target audience and tailor your offerings to match their travel vibes. - Social media is inspiring travel and creating FOMO
Picture this: a stunning photo of Cebu goes viral, and suddenly everyone wants to book a trip. Tap into influencers and travel bloggers who resonate with your brand. Authentic stories and eye-catching visuals are your ticket to attracting a global audience. Travelers today want more than just a vacation – they crave experiences that are tailored to their interests!
