Expedia: How Asia’s Middle Class Will Travel in 2025 - Spending Trends Revealed

Travel remains a top priority for 4 out of 5 (81%) mass affluent consumers in upper-middle-class Asia, who plan to spend an average of 23% of their income on trips within the next 12 months, despite inflationary pressures.

These are the findings of a survey conducted by Atomik Research on behalf of Expedia Group between August 30th and September 10th, 2024. The survey polled 4,000 individuals from China, India, Indonesia, Vietnam, and Singapore who will travel or plan to travel within the next 12 months. The respondents’ incomes represent at least +/- 10% of the average income in their country of origin. The Asian middle class is expected to reach 3.5 billion and comprise two-thirds of the global middle class by 2030.

Almost two in five (39%) respondents stated they would prioritize travel over purchasing a new car or upgrading their electronics, while almost one in three (32%) prioritized it over dining out.

According to the research, mass affluent Asian travelers plan to visit an average of 4 destinations within 10 days on their next international trip, with Japan, the USA, Canada, France, South Korea, Australia, and Germany ranking as the most popular destinations.

Indian travelers plan longer trips, averaging 14 days, compared to Vietnamese travelers who have the shortest average trip duration (8 days). Indian travelers often schedule five or more destinations for their next international trip, while travelers from Singapore, China, Vietnam, and Indonesia plan for four or fewer.

When it comes to travel planning, more than one in three booked through travel agents, and the majority (72%) utilized platforms like Expedia. Most respondents reported using travel apps for hotel bookings (73%), flight bookings (70%), and finding activities or excursions (52%). This reliance on digital tools is further confirmed by the fact that 83% of people in the Asia-Pacific region have a travel brand app installed on their devices, and 36% use it regularly.

The research found that mass affluent Asian travelers prioritize premium amenities and high-quality accommodation. When it comes to premium travel experiences on their next international trip, the majority (93%) of travelers plan to indulge in at least one or more of the following:

• 44% seek airline upgrades (lounge access, meals and drinks, etc.)
• 42% seek room and accommodation upgrades (honeymoon suites, etc.)
• 52% book a four or five-star hotel
• 39% book private tours or excursions
• 38% book first-class or business-class seats

Flight upgrades, premium accommodations, and exclusive experiences are at the forefront. Travelers from China, Singapore, and Vietnam strongly prefer gourmet meals, while Indian travelers prioritize first-class or business-class seats and Indonesian travelers opt for private tours. Overall, airline and accommodation upgrades emerge as the two most popular choices. All-inclusive packages are one of the most likely purchases for travelers from India (61%), Indonesia (61%), and Vietnam (58%).

Almost half (49%) expressed some level of anxiety about understanding local transportation, followed by food customs (43%), appropriate greetings (41%), and declaring luggage at customs (40%). More than one in three (34%) said they would be willing to spend more to stay in a hotel with staff who speak their language.

While 75% said they are looking for deals, discounts, or packages for their next trip due to inflation, Asians are still prioritizing luxury in travel, particularly high-end room amenities (53%), experiential tours (52%), in-depth destination experiences (40%), and a hotel with a Michelin-starred chef (31%).

Loyalty programs remain a significant draw for travelers, with 86% of respondents reporting being a member of one. Airline, hotel, and credit card reward programs are equally popular.