AirAsia MOVE Data Shows Travelers Prioritizing International Trips and Budgeting

Shifting Spending Habits and Destination Preferences

The current travel climate is defined by a calculated trade-off between airfare and lodging. Data from AirAsia MOVE indicates that travelers are spending 35 percent more on flights than they are on their hotels. This shift suggests that tourists are willing to absorb higher ticket prices to reach preferred destinations, but they are increasingly selective about where they stay. Three out of every four hotel bookings for the latter half of the year are concentrated in three- and four-star properties, as travelers actively avoid premium brands to manage their overall travel budgets. The data suggests that travelers remain willing to invest in reaching their preferred destinations, while becoming more selective about where they stay, MOVE said.

Geography also plays a central role in this financial strategy. There is a growing preference for international destinations reachable within four hours of flight time, a trend that allows travelers to maximize both their time and their limited funds. This shift has resulted in a 14-percent increase in bookings for overseas flights under four hours. Regional hubs with extensive flight networks are currently benefiting from this preference, as travelers look for ways to keep costs manageable without sacrificing their international travel goals. Travelers are also regaining the confidence to make forward bookings more than 120 days ahead of departure, with Indonesia, Japan, Malaysia, the Philippines, and Thailand topping the list of popular destinations.

The Influence of Salary Cycles on Booking Trends

Travelers are adopting a more disciplined approach to discretionary spending, which is now clearly reflected in booking timelines. AirAsia MOVE reports that two in five flights are booked during the window between the 25th of the month and the 5th of the following month, aligning closely with typical Asian salary cycles.

“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.”

AirAsia MOVE

This cautious behavior is expected to persist through the end of the year. The aviation industry remains volatile, with jet fuel prices consistently hovering above $100 per barrel, keeping upward pressure on ticket prices. Despite these challenges, the desire for travel remains strong, particularly among younger demographics. According to the data, millennials—defined as those between 30 and 45—drive 43 percent of bookings. When combined with Gen Z demand, younger travelers account for two-thirds of the total bookings on the platform, strengthening the belief that travel is a necessity to them.

Market Outlook and Regional Connectivity

Industry stakeholders are observing a high propensity for travel among Filipinos. A study by the travel platform Klook revealed that more than 70% of Filipinos are willing to spend more on airline tickets, accommodations, and activities this year, with 76% indicating readiness for international travel. AirAsia Philippines’ Q2 load factor showed that 78.9%, or over 1 million Filipino travelers, had already booked flights for travel until June 2024 to destinations including Taipei, Bangkok, Narita, Osaka, and Incheon.

Steve Dailisan, AirAsia Head of Communications and Public Affairs and First Officer, noted that the airline remains flexible in responding to changing market trends by innovating and providing deals that fit travel needs. As of 13 May, AirAsia reported a running load factor of over 80%, with the company expressing confidence that Q2 figures would surpass the Q1 load factor of 92%. To further stimulate demand, the airline is offering until 19 May a one-way base fare of PHP1,750 to Australian destinations including Perth, Sydney, and Melbourne for travel until 31 March 2025.

Sources: Philstar, Airasia.