Travel spending is staying robust as Millennials and Gen Z keep budgets steady into 2026, according to the latest Klook Travel Pulse report.
Budget plans show little pullback despite cost pressures
The survey finds 88 % of global travelers intend to keep or raise their travel budgets next year. In the Asia Pacific region, the intention to spend more is about 50 % higher than in Europe or the United States, reinforcing the area’s role as a growth engine.
International trips remain a priority, with nine in ten respondents expecting to travel abroad in 2026. Of those, 61 % aim for the first half of the year, up from 50 % a year earlier.
“Travel has remained resilient despite the rising cost of living,” said Marcus Yong, Vice President of Global Marketing at Klook. “What we are witnessing is a fundamental shift in how travelers evaluate value.”
When faced with higher expenses, many are trimming shopping and material purchases rather than cutting back on activities. This pattern shows strongest in the Asia Pacific market, where travelers are almost twice as likely as their Western peers to increase spending on experiences.
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Asia Pacific travelers are also willing to pay more across categories such as tours, dining and local transport, positioning the region as a leading driver of experience‑first travel.
Multi‑stop itineraries replace single‑city trips
Two‑thirds of respondents now plan to visit several destinations on a single journey, signaling a move away from one‑stop trips. Major cities are increasingly viewed as gateways rather than final stops.
Gen Z travelers from the region favor fast‑paced, densely packed itineraries that venture beyond mainstream hotspots. They are showing stronger intent to discover lesser‑known locales.
Japan remains a top consideration, but interest is spreading to secondary cities like Yokohama, Hiroshima and Nagoya, where cultural depth and breathing room are more abundant.
Across markets, the top motivations for exploring off‑the‑beaten‑path spots include authentic local experiences (42%), the opportunity to discover hidden gems (39%) and affordability (37%).
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Emerging destinations such as Cairns and Hobart in Australia, Baix Llobregat and Tromsø in Europe, and Sharjah and Hurghada in the Middle East are gaining traction among those seeking differentiation over repetition.
Social media and AI shape how trips are discovered and booked
Travel discovery and planning are now powered by social media inspiration and the practicality of artificial intelligence, which helps travelers filter options by cost, accessibility and time.
For the people on the ground, this means more choices that fit tighter wallets while still delivering richer moments. Families and solo adventurers alike can now stretch a single budget across several stops, gaining varied experiences without inflating costs.
Overall, the data suggest that the travel sector’s resilience is tied to a smarter allocation of funds rather than a simple increase in spending. Travelers are prioritizing depth over breadth, leveraging digital tools to make each dollar count.