- Travellers are prioritising flexibility and safe, accessible destinations
- Where confidence has faltered, agents blame weaker bookings on consumers’ fear of an uncertain future
- Ongoing flight changes underscore value of trusted travel advisors
Travel motivation among Indonesians and Thais appears to have faltered amid energy and economic troubles while the mood remains upbeat among Singaporean and Malaysian neighbours.
Outbound specialists in Singapore and Malaysia say their customers are still showing an appetite for holidays now and into the near future despite news of unfolding flight disruptions due to jet fuel challenges.
Edmund Ong, general manager, Trip.com Singapore, has not seen “signs of any significant pullback in travel demand”.
Ong told TTG Asia that searches and bookings on Trip.com remain strong, which reflects the importance of travel for Asian consumers today.
Instead of freezing travel plans, Singaporean consumers are instead choosing to adjust discretionary spending in other areas so as to proceed with their holidays.
“What we are seeing is a shift towards greater flexibility and pragmatism in how people travel. Travellers are increasingly leaning towards destinations closer to home within Asia, or choosing airlines and routings that transit through hubs unaffected by ongoing disruptions. This allows them to plan itineraries with greater confidence while still proceeding with their trips,” detailed Ong.
The recent NATAS Travel Fair in March – one of Singapore’s most prominent travel fairs – presented “encouraging signals”, recalled Ong.
“Trip.com recorded increased take-up for tour packages (during the fair), driven by a wider range of products available to travellers, including strong interest in Japan. This shows that consumers are still willing to commit to travel when they are presented with compelling options and sufficient reassurance,” he said.
Travel interest remains high for the upcoming June school holidays. Trip.com booking data shows that demand for popular Asia-Pacific destinations is strong, with year-on-year growth of up to 70 per cent.
“Greater exposure of these destinations on social media has also possibly helped to sustain interest and intent to travel,” he said.
Spirits also ran high at Malaysia’s MATTA Fair Kuala Lumpur in early April, reflecting strong appetite for trip throughout 2026.
Despite concerns about rising fuel costs and the possibility of higher fuel surcharges, Adam Kamal, CEO, Suka Travel & Tours, noted that many Malaysians have been insulated from immediate price impacts due to early travel inventory planning.
“Most of our flight inventory was secured prior to the recent developments, which means pricing for these packages remains stable. As a result, many of our customers are not impacted by potential fuel surcharge adjustments, as these would primarily affect new ad hoc bookings moving forward,” Adam explained.
Adam observed a strong appeal of shorthaul trips within South-east Asia as well as sustained interest in China and South Korea. Cruise holidays departing from Singapore had also gained traction.
He added that travel confidence among Malaysian consumers continues to hold for 2H2026, particularly during the peak holiday periods.
“For travel in the near future, while some customers are understandably more cautious, the overall sentiment remains positive, especially for destinations perceived as convenient and (safe) in the Asia-Pacific region,” Adam told TTG Asia.
The mood, however, turns in Indonesia. Pace of bookings has slipped due to a fear of what the future holds.
Pauline Suharno, president of the Association of Indonesian Travel Agents (ASTINDO) shared that GDS data and internal surveys last week found a 27 to 30 per cent dip in sales since March.
She said that “people are worried about the condition of their company (employer), rising taxes and fuel shortages”.
“The middle-class is holding back and reducing the frequency of their trips. On long weekends previously, people would immediately go to Bali or Lombok with social groups or colleagues. This is no longer happening. People are limiting travel strictly to family trips,” said Suharno.
In Thailand, while residents are still keen on taking relaxing holidays overseas, the Association of Thai Travel Agents (ATTA) notes “significant anxieties regarding near-term bookings” among consumers.
Rising travel expenses, spurred by increased fuel costs and subsequent airfare hikes, are a primary deterrent, observed Adith Chairattananon, honorary secretary-general of ATTA.
More pressingly, over the past one to two days, the Thai travel industry has been grappling with severe operational disruptions.
Adith said: “Recent data indicates that approximately 30 per cent of flights overall are facing sudden, near-term cancellations. Beyond the deterrent of rising airfares, the sheer unpredictability of sudden flight cancellations leaves consumers unable to prepare, severely crippling their confidence to finalise travel plans.
“Initially expected to resolve in one or two months, the conflict has dragged on, leaving no clear timeline for when the global situation will stabilise. With no immediate resolution in sight, we anticipate a significant slowdown in long-lead leisure travel demand as consumers await a more stabilised global landscape.”
He expects muted travel confidence in 2H2026 for Thailand, and estimates that the number of people firmly planning to travel is currently around 30 per cent. Thai residents are largely adopting a wait-and-see approach due to global geopolitical instability, specifically the prolonged Gulf war.
A Traveloka spokesperson told TTG Asia that outbound appetite among South-east Asian consumers “remains resilient”. While outbound searches on the Traveloka app are up across over March and April compared to January and February, transactions in the two recent months have declined slightly.
The spokesperson added: “Interest in travel is evidently still high, but factors like price and more limited schedules are impacting conversion.”
The travel tech firm observes that destination China has shown significant growth, with an increase in both searches and transactions.
“The country’s popularity as an alternative mid-haul destination is rising, with flights to the southern cities of Shenzhen and Guangzhou showing 30 per cent spikes,” said the spokesperson, adding that Malaysia has also seen a marginal increase in searches and transactions.
Book smart
With airlines having to continually reassess flight schedules amid ongoing fuel shocks, travel consultants say consumers should plan their trips wisely and rely on trusted travel agencies.
Trip.com’s Ong advised flexible travel options that allow for changes and cancellation, so that travellers can easily adjust their itineraries and alter their routings where needed. He also recommended regional destinations and reliance on trusted platforms. Trip.com assists travellers affected by flight disruptions with full refunds or complimentary rebooking on the next available flight, subject to individual airline policies.
Traveloka has also strengthened its ability to respond quickly by working closely with its travel and tourism partners to provide flexible policies for refunds and rescheduling.
The current uncertainties in travel provide a strong case for consumers to rely on experienced travel advisers, opined Adam.
He explained that travel advisers not only manage expectations, but also provide practical and flexible solutions to minimise disruption.
Suka Travel & Tours’ consultants help identify and recommend alternative flight routes where direct options may no longer be available, and advise clients on alternative travel dates to align with available capacity. The company also prioritises securing group seat allocations early to avoid last-minute shortages.
To reduce reliance on constrained air capacity, Suka Travel & Tours is diversifying its range of travel products, with greater emphasis on land arrangements and cruise packages.
Suharno said travel intermediaries have a crucial role to play in supporting travellers during such trying times.
“Many trips to Europe for the Lebaran (Eid) holidays were cancelled, leading to further cancellation of entire packages. The outcome (of refunds) depends on our negotiations with suppliers,” she reflected.
“While airlines generally provide refunds, many hotels in Europe apply non-refundable policies because they cannot resell the rooms at short notice. This applies to ferries, attractions and visa,” she said, adding that the risk of loss for customers is higher when bookings are made for special accommodation that must be paid for far in advance.
She told TTG Asia that strong relationships with suppliers may create room for credit or rescheduling options.
To cope with restrictions and disruptions, ATTA is actively pushing commercial aviation authorities to address compensation issues.
He said: “When abrupt cancellations occur, airlines currently only refund the flight costs, refusing liability for cascading financial damages such as non-refundable hotels and pre-paid land itineraries. ATTA is actively working to establish fairer compensation protocols to protect both the consumer and the travel trade from these compounding losses.”
Meanwhile, he advises travel agencies to focus on strategic long-term planning for the next six months.
“Agencies must prioritise robust cash flow management to navigate a potentially shrinking market, while remaining agile enough to rapidly assess and capitalise on short-term market opportunities,” he concluded. – Additional reporting by Anne Somanas, S Puvaneswary, Mimi Hudoyo
