Shaping Travel in 2025: Digital Transformation, Affordability, and Sustainability
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.
Key Trends Shaping Travel in 2025
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.
Digital Transformation
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 platforms such as Traveloka, highlighting the growing demand for seamless, tech-enabled travel solutions.
Affordability
Affordability remains a priority, as 46% of travellers prioritise cost, and promotions for less-considered destinations influence 39%.
Sustainability
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.
Recommendations for Travel Operators
To stimulate domestic tourism growth in 2025, travel operators should concentrate on initiatives that showcase local attractions while offering personalised, value-focused experiences that align with changing traveller preferences.
They can partner with eco-friendly hotels and collaborate with local communities to create authentic, sustainable travel experiences. Providing competitive pricing and enhancing accessibility for eco-friendly alternatives will be crucial in driving greater adoption among travellers.
Personalisation and Value-Driven Promotions
Offering promotions for off-peak travel and loyalty programmes can further incentivise repeat visits. Personalised, value-driven promotions tailored to traveller profiles can drive higher conversions, foster loyalty, and maximise returns.
Payment Options and Innovation
Payment preferences across the Apac region vary widely, driven by cultural differences and differing levels of technological adoption. Travel operators must understand customer behaviour and tailor payment solutions accordingly to enhance customer experience, foster trust, and drive higher engagement and loyalty.
Challenges in the Malaysian and Apac Travel Market
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.
Conclusion
In conclusion, digital transformation, affordability, and sustainability are key trends that will shape the travel industry in 2025. Travel operators must adapt to these shifts by prioritising initiatives that showcase local attractions, deliver personalised experiences, and offer sustainable travel options to drive growth and competitiveness.
Frequently Asked Questions
Q: What are the key trends shaping the travel industry in 2025?
A: Digital transformation, affordability, and sustainability are key trends that will drive the industry to meet the evolving needs of Asia-Pacific (Apac) travellers.
Q: What are the barriers to sustainable travel?
A: Barriers such as cost and accessibility must be addressed to encourage greater adoption of sustainable practices.
Q: How can travel operators adapt to the changing travel landscape?
A: Travel operators can focus on localised, affordable offerings and leverage technology to create personalised experiences to drive growth and competitiveness.
Q: What are the key factors driving domestic tourism growth in Malaysia?
A: Affordability, convenience, and safety are key factors driving domestic tourism growth in Malaysia, with 37% of Malaysians prioritising domestic travel.