Agoda Survey Shows More than Seventy Percent of Asian Travelers Prefer Accommodations Under One Hundred USD, Highlighting its Budget Travel’s Impact on Tourism Growth in Asia

Published on December 1, 2025

In its recent report, Agoda notes that almost 73% of travelers from Asia prefer to book accommodations costing less than US$100 per night. A survey conducted in October 2025 underlines a growing trend of price-sensitive travel in the region and its rising impact on the region’s tourism economy. This movement toward low-cost travel reflects the wider economic realities of many travelers throughout the region, with their increasing eye on affordability but without sacrificing experiential quality.

This is especially the case in Malaysia, Indonesia, and Vietnam, where the largest proportion of travelers prefer to stay in accommodations for less than US$50 per night. The budget travel trend isn’t a fad but an impactful phenomenon that is reordering how Asian tourists perceive and actually travel, having cost-efficiency as a top consideration in their decision-making process.

Tourism Growth Driven by Price-Sensitive Travelers

The survey also found that 40% of respondents plan to spend between 6% and 10% of their income on travel, making every dollar count. This growing segment of budget-conscious tourists is fueling a shift in tourism dynamics, as more travelers from India, Indonesia, and Vietnam look for value-for-money travel options. These findings are crucial for tourism operators and service providers across Asia, as they highlight the importance of offering affordable, yet high-quality travel experiences to capture the growing demand for budget travel.

The increasing demand for affordable accommodation options, coupled with the desire for authentic travel experiences, has led to tourism diversification in the region. Destinations that provide low-cost yet unique travel offerings, such as local cultural experiences and nature-based tourism, are seeing an uptick in visitors, particularly from the budget-conscious traveler segment.

Lesser-Known Cities Gaining Popularity Among Budget Travelers

One of the most significant impacts of this trend is the rise in interest for lesser-known cities across Asia. Agoda’s survey reveals that searches for accommodations in lesser-known cities have increased by 15% faster than in traditional tourism hubs over the past two years. This shift towards exploring emerging destinations is not only contributing to tourism growth but also helping to balance tourism across regions, reducing the pressure on over-visited cities and promoting local economies in secondary destinations.

For instance, cities like Yogyakarta in Indonesia, Phong Nha in Vietnam, and Chiang Mai in Thailand are attracting more budget travelers looking for unique cultural experiences at more affordable prices. The growing interest in these destinations is allowing them to reap the benefits of tourism while minimizing overcrowding and ensuring that local communities can sustainably handle the influx of visitors.

Boosting Local Economies and Job Creation

As budget tourism rises, local economies in emerging destinations are experiencing significant growth. The increase in domestic and international tourism has led to a rise in demand for local services, including restaurants, tour guides, transportation, and souvenir shops. These sectors, traditionally reliant on local communities, are benefiting from the growing tourist dollars spent by budget travelers.

Furthermore, budget tourism also helps create employment opportunities for local businesses, particularly in regions where tourism is still in the early stages of development. By attracting budget-conscious tourists, lesser-known destinations can stimulate job creation, including roles in hospitality, tourism services, and local crafts. This economic diversification is crucial for regions looking to expand their tourism industries and provide sustainable growth for their communities.

Shaping Future Tourism Trends: The Rise of Affordable, Sustainable Travel

The rise in budget travel is also influencing future tourism trends in Asia. As more travelers prioritize affordability, there is a growing push for sustainable tourism that balances economic growth with environmental conservation. Many budget-conscious tourists are choosing destinations that offer eco-friendly experiences, such as nature-based tours, sustainable accommodation options, and local cultural experiences that don’t compromise the natural environment.

The impact of affordable travel on sustainable tourism is particularly notable in regions like Southeast Asia, where visitors seek ways to experience the local culture and nature without contributing to over-tourism. This demand for eco-tourism solutions, along with the focus on low-impact travel, is shaping the future of the industry. Destinations that adopt eco-friendly tourism practices will likely see a sustained increase in visitor numbers, as travelers become more conscientious of their carbon footprints and the effects of their travels on the environment.

The Future of Budget Travel: Growth and Sustainability in Asia’s Tourism Sector

The growing demand for affordable accommodations and budget travel is shaping the future of the tourism industry in Asia. As more Asian travelers seek value for money while still enjoying high-quality experiences, the industry must adapt to these changes. Tourism operators will need to innovate and diversify their offerings to meet the needs of budget-conscious tourists, while ensuring that they maintain high standards of service and sustainability.

Looking ahead, budget travel will continue to be a driving force in tourism growth across Asia. As the industry responds to these changes, local economies will benefit from increased tourism revenue, while travelers will gain access to more affordable, authentic experiences that align with their values. The future of tourism in Asia will be defined by a balance of affordability, sustainability, and authentic travel experiences, as the region continues to evolve as a leading global tourism hub.

The Rising Impact of Budget Travel on Asia’s Tourism Landscape

These findings from Agoda’s survey highlight the significant impact that budget travel has on the tourism industry in Asia. No less than 73% of all travelers are looking for affordable, budget-friendly accommodation. With the growing demand for affordability and the increased interest in second- and third-tier cities, the face of tourism in the region is changing fast. Sustainable tourism and cultural exploration will continue to drive growth in the region, opening up new opportunities for local businesses, tourism operators, and regional economies.

As budget travel continues to lead tourism growth, the Asian tourism sector needs to develop its capacity to provide affordable, sustainable, and distinctive travel offerings that attract a wide range of travelers so as to ensure a resilient, inclusive tourism economy in the years to come.