Travel in Asia Pacific

December 2024

The pandemic proved to be a more extended phenomenon in Asia Pacific than in other regions, with some countries’ travel industry negatively impacted in both 2020 and 2021, and China, the biggest market, seeing declines in both 2020 and 2022. A strong recovery has been underway since 2023, although many parameters were still yet to return to their pre-pandemic levels by the end of 2024. The coming years are expected to see positive growth, with online continuing to take share from offline.

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This report comes in PPT.

Key findings

Sales yet to return to their pre-pandemic levels

As China was still being negatively impacted by COVID-19 in 2022, the full-scale recovery from the pandemic in Asia Pacific started a little later than in many other regions. While growth has been strong in 2023 and 2024, many areas of the travel industry had yet to return to their pre-pandemic levels by the end of 2019-2024 period,

Visa changes help boost inbound visitor numbers

China and India are both relaxing their visa requirements. For example, China has set up a new visa-free programme with several countries, including Poland, Australia and New Zealand, while India continues to expand its e-visa facility, which is now available to visitors from more than 160 countries.

Hybrid airlines a developing trend in South Korea

The rise of hybrid airlines, led by Air Premia, is a notable development in South Korea. Hybrid carriers try to blend the cost-efficiency of low-cost airlines with the service quality of traditional carriers. With Air Premia expanding its international routes, including launching flights to major destinations in Europe and the US, other airlines are expected to follow suit.

Manpower shortages a potential block on growth in Japan

In Japan, the increase in inbound arrivals, coupled with a boom in hotel openings, is fuelling expectations for further growth in its travel industry in the coming years. However, alongside this optimism, the problems of overtourism and manpower shortages – which are issues without clear-cut solutions – are also becoming more visible.

Scope
Key findings
Asia Pacific to record the fastest sales and per capita CAGRs over 2024-2029
Asia Pacific will become the biggest region in the coming years
In-destination spending moves back above its pre-pandemic levels in 2024
South Korea expected to see continued strong growth in lodging
In-destination spending a major winner over the 2019-2024 period
Most big markets see declining sales in real value terms over 2019-2024
Visitors to China and India increasing due to visa agreements
Manpower shortages a problem that could possibly limit growth in Japan
Wellness as a competitive tool for Japanese accommodation players
JI Hotel and Atour recording strong growth in 2024
Full-service carriers dominate airlines sales in Asia Pacific
Korean Air merger with Asiana Airlines expected to go through in 2025
Trip.com gaining share in 2024
OTAs gaining share in India but offline booking still leads
Strong growth expected throughout the 2024-2029 period
China and India expected to record double-digit CAGRs over 2024-2029
Hybrid airlines a growing trend in South Korean travel
China: Market Context
China: Competitive Landscape
Hong Kong, China: Market Context
Hong Kong, China: Competitive Landscape
India: Market Context
India: Competitive Landscape
Indonesia: Market Context
Indonesia: Competitive Landscape
Japan: Market Context
Japan: Competitive Landscape
Malaysia: Market Context
Malaysia: Competitive Landscape
Philippines: Market Context
Philippines: Competitive Landscape
Singapore: Market Context
Singapore: Competitive Landscape
South Korea: Market Context
South Korea: Competitive Landscape
Taiwan: Market Context
Taiwan: Competitive Landscape
Thailand: Market Context
Thailand: Competitive Landscape
Vietnam: Market Context
Vietnam: Competitive Landscape

Travel

Travel encompasses several categories including tourism flows, lodging, travel modes, in-destination spending and booking.

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