Indonesia and Thailand Travel Trends, How Luxury and Budget Spend Profiles Are Redefining Holiday Choices and Global Tourism

Published on December 26, 2025

Indonesia has become a key example of how consumer spending power significantly shapes travel preferences, especially in the context of international travel. Luxury travellers in Indonesia have shown a marked preference for international destinations compared to budget travellers. Research has shown that 52% of Indonesian luxury travellers plan international trips, a stark contrast to the 25-26% of budget travellers who express similar intentions. This divide reflects the significant impact of income levels on travel habits, and it has important implications for the global travel industry.

The Demographic Divide: Who Travels for Luxury vs Budget?

In Indonesia, the differences in travel behaviour are heavily influenced by demographic factors. Luxury travellers tend to be younger, more affluent, and predominantly male, while budget travellers are often from middle-income groups. Specifically, 40% of luxury travellers in Indonesia are aged between 18 and 24, while 39% are aged between 25 and 34. In contrast, among budget travellers, only 33% and 36% fall into these age ranges. This reflects a younger, wealthier demographic seeking more luxurious experiences, while budget travellers are typically older or less affluent.

Similar trends appear in Thailand, where luxury travellers are also younger, typically between the ages of 25 and 34, and come from higher-income backgrounds. Budget travellers, like in Indonesia, are generally from middle-income groups, further emphasizing the importance of income in shaping travel preferences.

International Travel Intent: A Clear Preference Among Luxury Travellers

The preference for international travel among luxury travellers is a clear trend in both Indonesia and Thailand. In Indonesia, luxury travellers show a significantly stronger intent to travel abroad compared to their budget-conscious counterparts. While domestic destinations remain popular, luxury travellers place a much greater emphasis on international trips. Similarly, in Thailand, luxury travellers are more inclined to seek international experiences, whereas budget travellers tend to focus on local tourism, although both groups demonstrate a notable interest in domestic travel.

In Indonesia, Bali remains the most popular domestic destination for both segments, illustrating the continuing appeal of local travel. However, Japan is the top international destination for luxury travellers, who are more likely to choose international experiences. This preference for international destinations like Japan is also mirrored in Thailand, although budget travellers in Thailand show a stronger preference for staying within the country.

Travel Planning: How Do Luxury and Budget Travellers Prepare?

Indonesia and Thailand show distinct planning behaviours when it comes to how luxury and budget travellers prepare for their trips. In Indonesia, luxury travellers are more likely to consult destination marketing organisations (DMOs), seeking professional advice and curated content to guide their holiday decisions. This reflects a preference for structured, official information. In contrast, budget travellers tend to rely more on social media, personal recommendations from friends and family, and informal sources, suggesting a more flexible approach to travel planning.

In Thailand, a similar pattern emerges. Luxury travellers are more inclined to engage with DMOs and professional resources when planning their holidays, while budget travellers prefer using travel blogs and personal recommendations for inspiration. This highlights that luxury travellers tend to gravitate toward structured, professional planning tools, whereas budget travellers are more influenced by peer opinions and digital content.

Booking Preferences: Direct Methods vs Online Platforms

Another key distinction between luxury and budget travellers is their approach to booking. Both groups use online travel agencies (OTAs) and accommodation platforms, but luxury travellers in both Indonesia and Thailand prefer booking directly with hotels or through tour operators and offline travel agencies. This preference for more personalized, direct bookings suggests that luxury travellers value bespoke service and tailored experiences.

On the other hand, budget travellers are more likely to use online booking platforms, such as OTAs, which provide convenience, better pricing options, and a wider variety of choices. This growing reliance on digital booking tools by budget travellers underlines the importance of online platforms in shaping travel choices, as they provide a cost-effective and accessible way for travellers to plan their trips.

Advertising Preferences: Traditional Media vs Digital Advertising

A major difference between luxury and budget travellers in Indonesia and Thailand lies in their advertising preferences. Luxury travellers in Indonesia are more likely to engage with traditional advertising formats such as billboards and cinema ads. This suggests that traditional forms of advertising still have significant influence over this demographic. In contrast, budget travellers are much more responsive to digital channels, particularly social media, online streaming services, and travel websites. This indicates that budget travellers prefer more interactive, online advertising formats that they can easily access and engage with.

A similar trend is observed in Thailand, where luxury travellers respond more favourably to traditional advertising, especially billboards, while budget travellers engage more with digital advertising, including social media and travel websites. These differing responses highlight the need for the travel industry to use a segmented approach to reach these groups. Luxury travellers are more likely to respond to premium, offline advertising, while budget travellers are more attracted to digital platforms that offer them greater convenience and access to value-driven content.

Marketing Implications: A Tailored Strategy for Each Segment

These insights suggest that the travel industry must embrace a segmented marketing approach to cater to the different preferences of luxury travellers and budget travellers. Luxury travellers should be targeted with premium content and marketing campaigns that leverage traditional advertising channels like billboards, cinema, and destination marketing organisations. These consumers prefer exclusive, professional travel experiences and respond positively to high-end, curated content that speaks to their need for sophistication.

For budget travellers, marketing strategies should focus on digital platforms, social media engagement, and price-driven content. Budget travellers are motivated by convenience and affordability, and they tend to seek travel options that offer value. Their decisions are often shaped by peer reviews, social media engagement, and user-generated content that emphasizes cost-effectiveness.

The global travel industry will benefit from this understanding as it allows brands to cater more effectively to the diverse needs of luxury and budget travellers. With Indonesia and Thailand continuing to grow as tourism hotspots, knowing the nuances of traveller behaviour will be critical for capturing both high-spending and cost-conscious consumers.

Adapting to a Diversified Travel Market

As luxury and budget travel segments continue to expand in both Indonesia and Thailand, travel brands must adapt their strategies to effectively cater to these distinct groups. Luxury travellers in both countries are driving demand for international destinations and personalized travel experiences, while budget travellers remain focused on local tourism, seeking affordable and convenient options.

The travel industry must recognize and respond to these differences by offering tailored marketing campaigns that speak to each group’s unique preferences. Luxury travellers desire a more curated, exclusive travel experience and are drawn to traditional advertising and direct booking methods. Budget travellers, on the other hand, prioritize ease of booking and affordability, often using online platforms and digital advertising to guide their decisions.

As demand for both luxury and budget travel grows in Indonesia and Thailand, understanding these diverse travel preferences will allow brands to refine their strategies, ensuring they are able to engage effectively with each segment. This segmentation will not only benefit brands operating within these markets but will also have a significant global impact, as these emerging tourism hotspots continue to shape the future of the travel industry. By understanding how income, age, and travel intent influence consumer behaviour, brands can better meet the needs of today’s travellers and drive growth in these important markets.