How Localization is Driving Hotel Success in Asia: Agoda’s New Findings on Guest Satisfaction and Revenue

Published on December 25, 2025

The latest research from Agoda has revealed that hotel localization strategies are playing a pivotal role in shaping the future of travel across Asia. With Asia becoming the world’s fastest-growing tourism region, the findings suggest that hotels implementing advanced localization measures are seeing improved guest satisfaction, higher repeat bookings, and stronger revenue performance.

The report, titled “Tailored to Win: How Hotels are Using Localization to Capture Asia’s Tourism Boom”, emphasizes the critical role that localization now plays in the hospitality industry. The research outlines how hotels have evolved beyond just language translation to offer a holistic approach that includes culturally tailored marketing, localized payment systems, and customized service delivery.

Localization Drives Performance and Guest Loyalty

According to Agoda’s findings, approximately one third of hotels in Asia have reached an “integrated tailoring” stage in their localization efforts. This means they have embedded localization strategies throughout the entire guest journey, from discovery and booking to in-stay experiences and post-stay engagement. Hotels at this stage report notably higher levels of guest satisfaction, as well as stronger loyalty, as travelers increasingly seek culturally enriched, personalized experiences.

The report also found that hotels leveraging deeper localization strategies — those that go beyond basic adaptations — achieve significantly stronger results than those relying on traditional, generic models. For instance, integrated tailoring leads to increased revenue per available room (RevPAR), stronger pricing power, and a higher willingness among guests to pay for premium services.

Asia’s Expanding Tourism Market Fuels Localization Demand

Asia now represents nearly 28% of global international arrivals, up from just 9% in 2022, and this massive surge is driving hotels to rethink how they engage with tourists. The report highlights the projected growth of Asian travelers, who are expected to account for half of the global growth in air passenger numbers over the next 15 years. As this market grows, hotels across the region must increasingly adapt to the preferences of diverse tourists from China, Japan, South Korea, Southeast Asia, and other markets.

These shifts in travel behavior are especially relevant as tourists seek more than just standard amenities. Instead, they’re gravitating toward experiences that resonate with their cultural backgrounds and travel preferences. This is where localization becomes essential, not only for guest engagement but also for ensuring long-term success in a competitive market.

Different Approaches to Localization Across Hotel Categories

The Agoda study further reveals a distinct divide in how luxury and mid-scale hotels are adopting localization strategies. Five-star hotels are leading the charge, with nearly half of these properties incorporating advanced localization practices. In contrast, midscale and economy hotels are lagging behind, with only a small fraction having made significant strides in integrated localization.

Access to guest data, digital infrastructure, and investment capacity are major differentiators, as luxury hotels are more likely to have the resources necessary to invest in advanced localization technologies and practices. These properties can afford to create customized marketing campaigns, integrate local digital payment methods, and build exclusive, culturally resonant guest experiences.

The Role of Digital Platforms in Supporting Localization

Online travel agencies (OTAs) like Agoda play a crucial role in supporting hotel localization at scale. Hotels that adopt advanced localization strategies are significantly more likely to rely on OTAs’ data insights, language tools, and pricing systems to efficiently serve multiple source markets. This reliance helps hotels deliver a seamless, personalized experience for guests from different countries, making it easier for hotels to cater to the growing demand for localized travel experiences.

However, the study did point out a gap in the use of local influencers and content creators. While many hotels in Asia have embraced localized marketing, fewer properties are collaborating with local influencers — a growing trend that plays a key role in how travelers make decisions. Hotels looking to stay competitive may need to increase their engagement with these modern marketing methods.

Challenges in On-property Localization

Despite the significant advances in hotel localization during the booking and payment journey, on-property localization remains one of the most challenging areas. While many hotels have adapted their food and beverage offerings or provided multilingual materials, fewer have invested in cultural training or multilingual frontline staff. Agoda’s findings suggest that a disconnect between pre-booking localization and on-site service delivery can lead to disappointment among guests, particularly if the expectations set during the booking process are not met in person.

Looking to the Future: Localization as a Strategic Imperative

The report concludes by stating that localization is no longer just a competitive advantage but a baseline requirement for hotels looking to succeed in the increasingly complex tourism markets in Asia. As global travel continues to grow, Asia remains at the center of this shift, and hotels that integrate localization into their operations across all touchpoints will have a distinct edge.

As travelers continue to seek personalized and culturally relevant experiences, hotels that fail to adapt will risk falling behind. Agoda’s findings make it clear that cultural tailoring — from the marketing stage to on-site interactions — is not just important for guest satisfaction but essential for business success in Asia’s dynamic hospitality landscape.