Research Insights 5 things to expect in the Southeast Asia travel market by 2025

5 things to expect in the Southeast Asia travel market by 2025

January 2023
Phocuswright Research

Southeast Asia is embarking on the road to recovery after a damaging travel hiatus. The pandemic abruptly discontinued a decade of travel growth and catalyzed economic regression. According to Phocuswright’s latest travel research report Southeast Asia Travel Market Report 2021-2025, Thailand and Singapore commenced a restricted reboot of international travel in the final quarter of 2021, but only in the second quarter of 2022 did unhindered travel return regionwide. Inbound and outbound travel are gaining momentum, while domestic tourism continues to underpin the air travel revival in Thailand, Malaysia and Indonesia. Singapore's global air connectivity is regaining scale, and will be enhanced as the key Northeast Asian markets of Japan, South Korea, Hong Kong and Taiwan, and hopefully China, ramp up international flight services.

Full-service and low-cost carriers are restoring flight routes and frequencies, plus new services from primary and secondary airports. Hotel pipelines are strong, and domestic tourism activity remains buoyant in Thailand, Indonesia and Malaysia. Here are 5 things to expect in the Southeast Asia travel market by 2025:

  1. Gross bookings in Southeast Asia will reach 94% of the record 2019 level.
  2. Digital transformation will continue to accelerate rapidly across Southeast Asia, with online bookings more than doubling between 2022 and 2025.
  3. Eager to embrace all forms of mobile commerce, the region will see mobile gross bookings double its 2019 numbers.
  4. Highly anticipated new rail services in Indonesia and Thailand will drive ridership growth, with OTAs forecast to be the key beneficiary of expanded mobile ticketing.
  5. Uncertainty about the return of Chinese tourists will continue to hurt Thailand most in Southeast Asia.

Phocuswright Chart: Mobile Gross Bookings & Mobile Share of Online Gross Bookings
(Click image to view a larger version.)

A combined 2022 arrivals forecast of around 30 million for the four nations of Thailand, Singapore, Malaysia and Indonesia is small in comparison to 2019. However, it would provide a platform to build upon in 2023 and beyond.

It’s important for executives throughout the travel industry to understand the reality that is emerging in global markets.

This report provides a comprehensive view of the Southeast Asia travel market, with a focus on the key markets of Indonesia, Malaysia, Singapore and Thailand. Coverage includes detailed market sizing and projections, distribution trends, analysis of major travel segments, key developments and more.

This report is part of the Asia Pacific Travel Market Report 2021-2025 series, which includes all of the following publications (available now or coming soon):

  • Asia Pacific Travel Market Report 2021-2025
  • Australia-New Zealand Travel Market Report 2021-2025
  • China Travel Market Report 2021-2025
  • India Travel Market Report 2021-2025
  • Japan Travel Market Report 2021-2025
  • Northeast Asia Travel Market Report 2021-2025
  • Southeast Asia Travel Market Report 2021-2025
  • Asia Pacific Travel Market Data Sheet 2021-2025

For more deep insights into the travel trends, markets, segments and innovations covered by Phocuswright, subscribe your entire company to Open Access. This subscription puts the entire Phocuswright research library and powerful data visualization tools at your fingertips. There’s a reason executives around the world trust and reference Phocuswright research and data on a daily basis. Explore for yourself why.