Digitalization and AI: Catalysts for Quality Tourism in Southeast Asia

This article is published in collaboration with the Expedia Group.

Southeast Asia has strong reasons to be optimistic about the future of its tourism sector as it welcomes the new year. 2025 is projected to be yet another landmark year for tourism if the trends of the last 5 years continue their current trajectory. The latest data from six of Southeast Asia’s largest economies indicate up to a 30% increase in visitor arrivals for 2024 compared with 2023 (see Exhibit A).

Global search trends also point to a favorable outlook for ASEAN member countries that depend on tourism as a key growth sector. First-party data from Expedia Group reveals that the Asia–Pacific region is leading globally in search volume growth, with a 25% quarter-on-quarter (QoQ) rise and a 35% year-over-year (YoY) increase in searches. Latest travel trends also highlight a preference for short-term trip planning, with a 15% QoQ growth in searches for trips within a 0–6-day window. ASEAN is in a prime position to capitalize on this demand, particularly from markets within a 6-hour flight radius, including Australia, India, Japan, and the Republic of Korea. Destinations like Singapore and Bangkok continue to rank among the top 10 most-searched global destinations, reinforcing their role as key gateways to the region.

 Exhibit A: % Change in Visitor Arrivals in Southeast Asia-6

Source: Published statistics on official sites

Beyond the growth in visitor arrivals, Southeast Asian countries are also garnering greater international acclaim. For example, Indonesia’s tourism sector has gained recognition for its quality improvements, climbing 10 spots to 22nd out of 119 countries in the World Economic Forum’s Travel and Tourism Development Index, making it the second-best performer in ASEAN. Singapore took second place on Accor’s 2025 list of top 20 trending destinations, right behind New York City, and Thailand had ascended to the top of the global tourism ladder, surpassing London and Istanbul as the world’s most visited city.

These achievements highlight meaningful progress for Southeast Asia, yet significant opportunities remain as ASEAN charts its path for the next decade of growth. For instance, Southeast Asia's tourism sector has yet to recover to pre-pandemic levels, in part due to slower outbound from the People's Republic of China. Meanwhile, the push for sustainable growth has intensified across the region, driven by growing concerns over the impacts of overtourism. Factors contributing to a state of a permacrisis following COVID-19, such as climate change, economic volatility, and geopolitical tensions, are also likely to endure.

A thorough review of tourism strategies, including the need to accelerate sector transformation to overcome challenges and bolster resilience is therefore timely. One promising direction is adopting a quality tourism growth model.

Quality tourism goes beyond simply attracting affluent travelers. It takes into consideration several other factors that contribute toward a nuanced, multi-dimensional vision of sustainable growth (refer to Exhibit B below for illustrative reference). However, countries must establish a shared understanding of what “quality tourism” means within their specific context to ensure that it aligns with their national priorities, distinct value propositions, and unique operating environments. Achieving this will be complex, but technology offers a viable pathway forward.

Exhibit B: Quality Tourism

Technology’s Transformative Impact Potential

For decades, technology has revolutionized the travel industry, but the rapid evolution of artificial intelligence (AI) promises to accelerate this transformation. AI-powered tools are already reshaping how travelers plan and experience trips today. They offer personalized recommendations tailored to travelers’ preferences, which enhance traveler engagement, improve the travel planning process, and empower travelers to adapt more effectively to unexpected circumstances during their trips. For example, AI chatbots or virtual assistants can guide travelers during unforeseen disruptions, such as flight cancellations or sudden weather changes. They provide real-time updates, alternative travel options, or emergency contacts, helping travelers adapt without undue stress.

In the pursuit of “quality tourism,” AI and related technologies offer transformative opportunities to advance a country’s tourism vision. Innovative partnerships between ministries and public agencies of tourism in ASEAN, and online travel platforms can drive mutually beneficial outcomes. These platforms not only provide access to a diverse global audience but also empower tourism authorities with advanced tools to strategically target high-value visitor segments. By focusing on travelers who have the propensity to spend more, stay longer, and seek distinctive cultural or sustainable experiences, such collaborations can elevate the overall impact quality of tourism promotion initiatives.

Advanced targeting tools and AI-driven creative content studios that online travel platforms are developing can also help optimize the allocation of marketing resources while elevating destination storytelling. For example, these tools can highlight eco-friendly accommodations to environmentally conscious travelers or promote cultural festivals to profiles with a demonstrated interest in heritage tourism. Such capabilities take segment marketing to the next level, ensuring ASEAN connects with travelers whose interests align with its vision for quality tourism, and ultimately drive better returns in tourism for every capital deployed.

Addressing overtourism risks. Since 2022, the surge in tourists to key destinations has reignited concerns around overtourism globally, with locals complaining about unruly behavior and etiquette breaches. ASEAN is no exception. One possible solution lies in redistributing the tourism load, an area where online travel platforms can play a pivotal role. By analyzing search data, platforms can identify traveler interests and use these insights to promote alternative destinations such as in tier 2 or 3 cities that offer similar experiences. This could help with tourism dispersal, redirecting traffic to lesser-known destinations while still preserving strong interest in the region.

The good news is that consumer trends are already shifting toward these lesser-known destinations. According to Expedia’s Unpack’25 travel trends report, 63% of travelers are likely to visit quieter, less-crowded destinations. This aligns with the rise of “detour destinations," where travelers add side trips to popular regions. For example, tourists are now visiting Krabi instead of Phuket. It is a win-win for all. By using major destinations as gateways to lesser-explored areas, travelers can escape the crowds, secure better accommodation deals, and uncover hidden gems before they become overcrowded. This not only enhances the travel experience but also helps mitigate the risks of overtourism.

Promote greener travel, more responsible journeys. Technology also plays a pivotal role in promoting sustainability. With 90% of travelers seeking eco-friendly options (according to Expedia Group's 2022 Sustainable Travel Study), online travel platforms are already doing its part by integrating features that highlight sustainable choices. For instance, eco-certifications for hotels and filters for electric vehicle chargers at accommodations see gaining traction on booking platforms. These innovations empower travelers to make informed decisions and reduce their environmental impact.

Improving accessibility, boosting inclusive travel. Persons with disabilities are one of the most underserved communities in the tourism sector. Today, 15% of the global population lives with a disability. Between 2018 and 2019, US travelers with disabilities spent nearly $59 billion on travel and took a total of 81 million trips. At the same time, less than 55% of people report seeing travel options accessible to all abilities or inclusive of all traveler groups. 

Online travel platforms are uniquely positioned to serve this segment meaningfully by addressing their key needs through technology and advanced capabilities in user experience design. Supported by extensive research and a vast set of first party data points, incorporating digital accessibility considerations into each step of the online travel platform’s product life cycle can now be executed at unprecedented speed. Their extensive reach with a global consumer base and suppliers directly (e.g. hotels, vacation rental properties, car rental companies, airlines etc.) will also allow for an effective roll-out at scale. In 2022, Expedia Group launched the Lodging Accessibility Guide, an easy to understand guide on embedding accessibility best practices into lodging accommodations. Expedia Group lodging partners can find advice for how to adapt and market properties appropriately to deliver the best, most accessible traveler experiences.

But these efforts can only go so far. The advanced work of many online travel technology platforms operating globally in such areas can have a compounded impact for countries in ASEAN if their insights, learnings and experiences are transformed into practical toolkits and playbooks for public agencies of tourism across the region. Equipping the staff of such agencies with the latest knowledge in areas such as sustainability, customer service, inclusive travel, cultural sensitivity, and industry best practices would empower them to lead industry development efforts that advance quality tourism and help drive progress.

Collaboration is Key

Achieving impact at scale requires strong collaboration between the public and private sectors. 

Continuous dialogue and the exchange of insights will enable smarter allocation of resources and more impactful initiatives. Partnerships with technology leaders can help Southeast Asia harness cutting-edge solutions to drive sustainable, inclusive tourism growth.

ASEAN stands at a pivotal moment in its tourism journey. By embracing technology through partnerships, the region can take the lead in redefining what good looks like for the tourism sector, delivering not just numbers but meaningful, sustainable growth that benefits all. Together, we can ensure that ASEAN’s tourism sector becomes a regional benchmark for quality and innovation.