Singapore – Travel demand in Asia Pacific is shifting rather than simply rebounding, with travellers becoming more deliberate in their decisions and booking journeys growing increasingly complex, according to a new report by Criteo.
New data from Criteo shows APAC travel demand remained resilient heading into the spring season, with hotel traffic rising and a late spike of nearly 30% year-on-year, even as OTA conversion rates softened 10% year-on-year in Q1.
The report found that while overall demand remains steady, travellers are becoming more selective about how and where they travel. Air traffic in the region fell 17% year-on-year in Q1 2026, as tensions in the Middle East prompted some travellers to reconsider long-haul plans. However, demand has largely shifted toward nearer destinations rather than declined.
In April, air bookings rose 1.0% for short-haul and 1.8% for medium-haul travel year-on-year, while long-haul bookings fell 2.8%, signalling a continued pivot to regional travel. Rather than a broad pullback, the data points to a recalibration in demand, creating opportunities for destination marketers and online travel agencies focused on shorter-haul routes.
Criteo also found that APAC travellers are spending more time researching and comparing options before booking. On average, travellers browse around 25 hotel listings before booking, while 66% cite reviews as a key decision factor. For travel brands in the region, the challenge has shifted from attracting interest to closing bookings.
This longer consideration period is also reflected in APAC’s extended booking season compared to other regions. Travel bookings outpaced retail sales week-on-week from early July through mid-October 2025, longer than in both EMEA and the Americas. The trend signals an extended activation window for marketers, supporting always-on campaign strategies over short, peak-driven bursts.
At the same time, travellers are increasingly turning to AI tools for planning, with APAC leading adoption. The report found that full-trip AI planning is most common in the region, with 45% of Japanese travellers and 47% of South Korean travellers using AI for end-to-end trip planning, versus a global average of 30%.
AI is also emerging as a key channel in the travel journey. In March 2026, ChatGPT accounted for a higher share of travel booking page visits than traditional search by 13 percentage points, while 72% of Criteo’s travel clients recorded at least one booking from ChatGPT referrals.
Criteo said the shift underscores the need to identify high-intent travellers rather than focus on volume. In partnership with the company, Skyscanner shifted its mid-funnel success metric from clicks to “Engaged Search Sessions”, defined as sessions where users did not bounce and completed at least one search for flights, hotels or car hire. Campaigns optimised on this metric in India and Canada delivered up to a 67% lift in ROI and an 80% increase in engaged search sessions.
As travellers navigate a more cost-conscious and complex environment, Criteo said brands that best convert will be those using real-time commerce data, AI-driven targeting, intent-based strategies and full-funnel activation to engage travellers throughout the booking journey.
“In Japan and South Korea, nearly half of travellers are now turning to AI in their trip planning, a strong signal for the rest of APAC. How a hotel, airline, or destination is surfaced and described by AI now matters as much as how it’s advertised,” said Szi Wei Lo, Executive Managing Director, APAC, Criteo.
“Travel brands no longer win simply by outbidding competitors — they win by making it easier for travellers to understand, compare and choose their offering. The travel brands that pull ahead will be those treating content and product data as the driver of discovery, not a back-end concern.”
