Surabaya tops the list for value-driven travelers based on the lowest average room rates across Asia's top destinations

SINGAPORE, July 24, 2025 /PRNewswire/ -- With value-driven travel gaining momentum across Asia, digital travel platform Agoda revealed its rankings of Asia's most affordable summer destinations led by Surabaya, Indonesia where average room rates are $35 per night*. This presents hoteliers with new opportunities to capture sustained demand and maximize returns even when offering competitive deals.

Other top-value destinations include Tirupati (India), Hat Yai (Thailand), Dalat (Vietnam), Iloilo (Philippines), Kuching (Malaysia), Nagoya (Japan), Kaohsiung (Taiwan), and Daejeon (South Korea).

Affordability is shaping summer travel choices

This value-driven mindset is especially pronounced among millennials and Gen Z, who are increasingly prioritizing affordability in their summer travel plans. Both demographics share similar habits when it comes to budgeting for travel, particularly for accommodation. More than half of Gen Z travelers (56%) aim to keep their nightly stay below USD 50 per person, a preference that's also common among millennials, though at a slightly lower rate (44%). Beyond price, these younger travelers are also seeking experiences that offer meaningful value, making affordable yet enriching destinations especially appealing.

Yield management opportunities accommodation partners can benefit from

Affordability doesn't necessarily mean lower yields. Using Agoda's dynamic pricing and tech solutions, hoteliers can look to capitalize on different types of traveler demand as well as upsell local experiences and bundle value-added services. For example, partners can create summer budget packages that combine multi-location room rates with curated activities such as food tours or cultural excursions, increasing both booking value and guest satisfaction. Offering flexible cancellation policies and diverse payment options can better position hoteliers to meet the expectations of today's digitally savvy travelers. This approach is likely to become increasingly relevant as online sales are projected to account for 75% of Asia's travel revenue by 2029, according to Statista. 

Alongside catering to budget travel, hoteliers and accommodation partners can turn Agoda's data-driven insights into tangible strategies that boost bookings and drive revenue by tapping into other key motivators – culinary experiences and solo adventures:

• Capitalizing on culinary demand with value driven packages: Travelers from South Korea, Japan, Thailand, and Taiwan consistently rank food among their top travel motivators. Hoteliers can tap into this by collaborating with local chefs, launching seasonal menus, or hosting pop-up dining experiences. Bundling these culinary offerings with affordable room rates and curated local activities adds experiential value, ideal for budget-conscious travelers seeking more than just a place to stay.
• Capturing the rise of solo travelers with budget-friendly and short-lead promotions: Solo travel is also trending, with Agoda's Women Travel Trends survey showing Hong Kong and Thai women lead among Asian women in seeking independent adventures. Younger demographics, in particular, tend to book last minute and are often looking for affordable options, as reported in Agoda's Gen Z travel trends survey. This presents a timely opportunity for hoteliers to launch targeted, time-sensitive promotions during peak departure months (July to October), tailored to single travelers seeking spontaneous getaways. By offering special solo rates, value-added perks or last minute booking packages, hoteliers can further entice budget-conscious solo travelers.

"Today's travelers are increasingly prioritizing value-driven experiences, particularly among younger, price-conscious demographics," said Andrew Smith, Senior Vice President of Supply, Agoda. "For hotels and airlines, this presents a powerful opportunity to engage guests across the full travel journey by delivering personalized, data-informed value that drives both loyalty and repeat bookings."

Agoda's data-driven approach gives accommodation partners the tools to move beyond simply offering the "best deals." Offering dynamic pricing, packaging, and targeted marketing on the Agoda platform can help partners turn demand for affordable destinations into higher yields and stronger guest loyalty. With over 5 million holiday properties, more than 130,000 flight routes, and over 300,000 activities, Agoda provides endless possibilities for creating unforgettable travel experiences. 

For more insights on how to optimize strategic hotel initiatives this summer, visit https://partnerhub.agoda.com/.

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