21/08/2026

LYFE

LYFE FRIDAY | AUG 21, 2026

21 Local travel market sees high AI adoption, insurance uptake

M ALAYSIAN travellers rank first in East Asia for embracing artificial intelligence (AI) and digital tools faster than regional peers, transforming how they research, compare and manage their travel plans, signalling a new era of digitally assisted travel behaviour, according to the Holiday Barometer 2026 report presented by Redion (formerly Europ Assistance). This growing digital enthusiasm is matched by rising caution around safety as evidenced by strong insurance uptake and a more risk aware approach to travel planning. For the travel insurance and assistance industries, these trends signal a dual opportunity to meet the rising demand for solutions that combine AI-assisted tools with trusted protection, into every stage of the journey. AI reshapes travel planning, but human decision-making stays crucial Malaysia recorded the highest AI adoption rate in East Asia, with more than half (54%) of Malaysians using AI tools to plan or book a holiday, a significant increase from the previous year. Its primary use was as an all-in-one platform to research destinations, compare options and manage itineraries. However, this enthusiasm has not translated to full control: Usage stays concentrated at the planning stage, held back by concerns over data privacy, accuracy and booking errors. Similarly, a sizeable number of users (56%) expect to use AI to compare coverage in future and 57% would consider purchasing coverage policies through AI tools or agents. An early indication of how future travel behaviours may evolve, with technology and AI becoming a powerful enabler of travel decisions, but works best as a complement to A recent report has found that Southeast Asian travellers are not just travelling more, but travelling better. Tourists from the region are venturing further afield, staying longer and channelling spend into richer experiences on the ground. Southeast Asia’s own coastline was the region’s quiet powerhouse this quarter, as people flocked to Vietnam’s islands, Thailand’s beaches and Malaysia’s shores. Outbound demand stayed strong, led by East Asia and China’s second cities. The data was presented in the inaugural edition of the Traveloka SEA Index, a quarterly read on how the region actually travels, built entirely on the platform’s own first-party booking and search data across Indonesia, Malaysia, Singapore, Thailand and Vietnam. The index is a quarterly, retrospective barometer of Southeast Asian travel, drawn entirely from first party data across the region’s five largest markets. Rather than forecasting what travellers might do, it reports what they actually did, scoring every destination with a Demand Score (0–100) that ranks how fast its bookings grew against every other destination in that market. Key findings 1. Southeast Asia’s own coastline is a breakout star The quarter’s powerhouse was the region’s own beaches.

o Malaysian travellers combine digital convenience with focus on protection, peace of mind

already intend to take.

human expertise, not a replacement for it. Safety concerns influence travel have not reduced demand, but increased take-up on coverage Cost pressures and inflation continue to shape how Malaysians budget for travel, with safety becoming just as central to the travel and destination decision. Armed conflict, terrorism, natural disasters, health hazards and personal safety all weigh on travel decisions. Yet, these concerns are not dampening Malaysians’ appetite for travel. Travel intentions remain evenly split between domestic (43%) and international (46%), a sign of resilience despite the uncertainty. Most Malaysians (89%) still express strong enthusiasm for travel, driven by relaxation and escape. True to the Malaysians’ deep love for culinary experiences, trying new foods and local cuisines rank among the top three favourite aspects of leisure travel. This reinforces that risk-awareness is not travel fatigue and the opportunity for the industry lies not in persuasion, but in providing the reassurance, support and protection that provides safety conscious travellers with the confidence to say yes to the trips they

Strong adoption highlights growing demand for protection and assistance As Malaysians become more intentional and conscious of their travel decisions, nearly three quarters (74%) are increasingly opting to travel with some form of protection and insurance coverage on their leisure trips, ranking among the highest in the region and globally. Close to seven in 10 insured hold annual policies, while temporary coverage remains widely adopted (nearly nine in 10), indicating a market that increasingly views protection as an essential part of their travel planning. The risks travellers feel most exposed to – transportation accidents, health problems while travelling and loss of personal belongings – are driving demand toward more comprehensive, multi-risk policies rather than narrow, single-risk cover. For insurers, the opportunity is less about driving penetration than deepening their seamless engagement throughout the purchase journey where they are present from digital comparison to real time 24/7 access and visibility through mobile apps and their insurance

Despite growing global uncertainty, Malaysians are eager to travel both domestically and internationally, with stronger demand for safety, protection and travel assistance. – 123RFPIC

Singapore where travellers continue to prioritise leisure travel while becoming more intentional in how they plan, budget and make decisions. Inflation continues to influence travel spending priorities, and use of digital tools and services, while AI is increasingly helping travellers make faster and more informed choices while planning and during their trips. Now in its 25th edition, the study surveyed 26,000 respondents across 26 countries using a consistent global methodology, enabling credible year on-year comparisons of traveller behaviour and emerging trends. and Japan,

assistance services.

Desire to travel remains strong, but travellers paying closer attention to choices Despite ongoing geopolitical uncertainty and economic pressures, the desire to travel remains strong, with nearly eight in 10 people worldwide expressing enthusiasm for travel this year. Following record levels last year, travel intentions have stabilised at a high level in 2026, remaining well above those observed in 2022 and 2023. This resilience is also reflected across East Asia, including Hong Kong, Malaysia,

Southeast Asians booking longer stays, region’s own beaches win big

Beaches such as Phuket are popular tourist attractions. – PICS FROM 123RF

Qingdao has unexpectedly been a tourist draw this year.

2. Travellers are going deeper, not just further Across markets, the index shows longer, richer trips rather than simply more of them. Malaysian travellers stretched their Bali stays from 2.3 to 2.7 nights and travelled in larger, family-sized groups. Da Nang drew the region’s biggest travel parties at 2.23 people per booking and Vietnamese stays in Bangkok lengthened from 3.2 to 3.6 nights. Where travellers took fewer or shorter flights, they redirected that spend into accommodation and experiences. A quarter defined by making each trip count. 3. East Asia is the biggest draw

abroad and four cities won in every category Among outbound destinations, four grew faster than their market average in all five Southeast Asian source markets: Osaka, Seoul, Shanghai and Taipei. They were the only destinations to do so and every one is in East Asia. It remains the region’s strongest outbound pull, even as the freshest energy sits one rung down. 4. China’s second cities are the breakout obsession Beyond the headline names, Chengdu, Shenzhen, Kunming and Chongqing grew at roughly two to four times the market’s pace across multiple source markets, the fastest rising cluster on the Index.

The momentum is underpinned by expanding access: Mutual visa-free arrangements between China and Singapore, Malaysia and Thailand, and China’s unilateral visa-waiver programme, extended through end 2026. 5. Wildcard: Qingdao Each edition of the index closes with one surprising anomaly. This quarter, it is Qingdao, a Chinese coastal city whose combined bookings from four Southeast Asian markets rose roughly nine-fold year on-year, off a small but unmistakable base. The likely trigger is a rapid expansion of direct flights linking Qingdao to Southeast Asia, including new services to Ho Chi Minh City and Penang in early 2026.

In Vietnam, a homegrown coastal sweep put Phu Quoc (Demand 100, bookings +86% year-on-year), Con Dao, Hoi An and Da Nang at the top of the momentum table, with Da Nang’s flagship Ba Na Hills attraction up 132%. Thailand’s Krabi was Malaysia’s fastest-growing destination, booking at roughly five times last year’s pace. Malaysia’s east-coast gateway of Kuala Terengganu, the springboard for Redang and the Perhentian Islands, more than doubled year-on-year, and Bali matured into a longer, do-it proper holiday, with Malaysian bookings doubling and stays lengthening. Southeast Asia is not only sending travellers out – its own coast is pulling them in.