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Locally Inspired Hotels Accelerate Growth Across Asia

A new Agoda report titled “Tailored to Win: Capture Asia’s Tourism Boom” highlights the key travel trends shaping Asia in 2025, with a strong focus on the rise of culturally tailored hotels. Properties that integrate local cultural elements are seeing clear performance advantages, with ninety-nine percent reporting higher guest satisfaction and ninety-one percent confirming that travelers are willing to pay premium rates for stays enriched with local character.

This shift is driven by changing expectations among Asian travelers, influenced by cultural identity, food preferences, language and the in-stay experience. Hotels that successfully adapt to these expectations gain a competitive edge by aligning with the cultural and linguistic preferences of the region’s travelers. However, while many properties are attempting to adopt local-cultural positioning, only one-third have implemented it effectively enough to personalize the entire guest journey. The main barriers include limited access to cultural data, with about fifty-five percent of hotel owners uncertain about their customers’ real preferences and forty-four percent struggling to measure return on investment.

Agoda’s 2026 Travel Outlook further underscores the rising interest in emerging destinations among Asia’s expanding middle class. Simplified visa policies and improved air connectivity continue to support regional travel growth. Affordability remains a major driver, with forty-three percent of respondents selecting lesser-known cities primarily for their cost advantages. Yet price is not the only motivator, as travelers are also seeking distinctive cultural experiences, exclusive offers and opportunities for outdoor adventure.

Many destinations described as “unfamiliar yet accessible” are seeing increased attention, particularly India at ninety-one percent, the Philippines at eighty-nine percent and Indonesia at eighty percent. Demand for secondary and less explored destinations is expanding, leading to greater diversity in accommodation options. At the same time, technology and data are reshaping how travelers plan and experience their trips, making personalized exploration easier and more seamless than ever.