Why Travelers in Southeast Asia, Including Vietnam, Malaysia, and Indonesia, Are Flocking to Budget Hotels Under Hundred Dollars – Here’s What You Need to Know

Published on December 1, 2025

Travelers from across Asia, especially in countries like Vietnam, Malaysia, and Indonesia, are becoming increasingly budget-conscious, with the majority preferring to book accommodations that cost less than $100 per night. Agoda’s recent survey reveals that a significant 73% of Asian tourists prioritize affordability when selecting their lodging, with a notable preference for accommodations costing under $50 per night in places like Vietnam and Indonesia. With travel expenses in mind, these price-sensitive travelers are opting for stays in lesser-known cities that offer both unique experiences and more affordable prices. As tourists seek to maximize their spending, they are choosing destinations that balance cost and quality, making budget accommodations an essential factor for many.

Price is the Leading Factor for Accommodation Choices

When it comes to booking travel accommodations, price stands out as the most important factor for Asian tourists. 39% of travelers highlighted cost as the deciding element when choosing where to stay. This is significantly higher than considerations such as location (30%) or reviews (18%). The trend is particularly evident in Malaysia, Indonesia, and Vietnam, where travelers are more likely to seek out lower-cost options to stretch their travel budgets further.

Travelers from these countries, as well as India, South Korea, and the Philippines, are highly motivated to find affordable accommodations, often opting for stays that cost well below the regional average. With 40% of respondents planning to spend between 6% and 10% of their income on travel, it’s clear that maximizing value is at the forefront of their minds.

The Growing Popularity of Lesser-Known Cities in Asia

Interestingly, the trend of affordable accommodations is not only driving travelers toward more budget-friendly hotels but also pushing them to explore lesser-known cities. Searches for accommodations in cities outside of the traditional tourism hubs in Asia have grown by 15% over the past two years. Many tourists are turning to destinations that offer unique cultural experiences, beautiful nature, and a quieter atmosphere—without the high costs of popular destinations.

Countries like Vietnam and Malaysia are seeing a growing number of visitors who are choosing smaller towns and cities that offer a more intimate experience of local culture and outdoor activities. These locations also often boast more affordable accommodation options, further attracting price-sensitive travelers. With this shift, tourism patterns are being reshaped as people increasingly opt for non-traditional destinations, seeking experiences that are rich in local culture and natural beauty, but without the premium prices of major cities like Bangkok or Tokyo.

What Travelers Should Know About Budget Travel in Asia

For travelers looking to make the most of their budgets while exploring Asia, here are some key considerations:

1. Prioritize Off-Peak Destinations

Instead of focusing on the usual tourism hotspots, consider hidden gems or smaller cities that offer a great deal of cultural and natural beauty. These places are often less crowded, less expensive, and just as enriching. Countries like Vietnam, Indonesia, and Thailand have many destinations that fit this profile, making them ideal for budget-conscious travelers.

2. Look for Deals on Booking Platforms

Agoda, Booking.com, and similar platforms often provide competitive rates, particularly for budget-friendly options. Many accommodations in lesser-known cities offer attractive discounts, especially during the off-peak season. Take advantage of these platforms to compare prices and find the best deals.

3. Consider Alternative Accommodations

Apart from hotels, there are various alternative lodging options available, such as hostels, guesthouses, and homestays. These alternatives often provide travelers with an authentic local experience at a much lower cost, making them a perfect choice for those on a budget.

The Demand for Affordable Travel is Here to Stay

As the survey results suggest, the trend toward affordable travel is here to stay, particularly for tourists from Asia. Price remains a key consideration for the majority of travelers, and it seems that this demand for budget-friendly options will continue to shape the tourism landscape in the coming years. Travelers are becoming savvier about how they spend their travel dollars, and as the market adapts, more affordable and culturally rich destinations will emerge to meet these needs.

Whether it’s exploring a vibrant street market in Vietnam or hiking in the hills of Indonesia, travelers are discovering that a great travel experience doesn’t have to come with a hefty price tag. The increasing interest in budget accommodations and lesser-known destinations will likely lead to more exciting and affordable opportunities for tourists in Asia.

Final Thoughts

Travelers are proving that affordability and enriching experiences can go hand-in-hand. As the demand for budget-friendly accommodations continues to rise across Asia, destinations and accommodation providers will need to adjust to meet the needs of this growing market. With the right balance of cost, culture, and experience, travelers are finding that they can have an unforgettable journey without breaking the bank.