Philippines Among Top Travel Destinations in H2, AirAsia Data Reveals

MANILA, Philippines — Travelers are looking for opportunities to fly to foreign destinations in the second half, and this is going to benefit Philippine tourism, according to AirAsia’s booking platform. Based on forward booking data from AirAsia MOVE, travelers are spending 35 percent more on flights than on their hotels, indicating they are scaling down on accommodation to afford higher airfares. “The data suggests that travelers remain willing to invest in reaching their preferred destinations, while becoming more selective about where they stay,” MOVE said. This is becoming evident in the kind of properties that travelers are choosing to stay in. Three in four hotel bookings in the second half are on three- and four-star hotels, as guests try to avoid the premium brands for now. As fares remain elevated, MOVE noted that two in five flights are booked between the 25th and fifth days of the month, closely aligning with the salary cycles in Asia. “The pattern suggests that while travelers often begin researching and planning earlier, many of them choose to make the trip closer to payday periods, reflecting a more disciplined approach to discretionary spending,” MOVE said. Travelers are likely to maintain this level of financial planning until the end of the year given the volatility of the aviation market, with jet fuel prices still hovering above $100 per barrel. There is also a growing preference to go to international destinations that are within four hours of flight time. MOVE said this allows travelers to maximize their travel budgets and time. To date, MOVE recorded a 14-percent increase in overseas flights under four hours. MOVE said if this trend holds, it will benefit markets with the widest networks of regional flights. By demographics, MOVE said millennials are driving air travel these days, as it traces 43 percent of its bookings to individuals between 30 and 45. Combined with the Gen Z demand, MOVE said two-thirds of bookings in its platform are made by younger travelers, strengthening the belief that travel is a necessity to them.