Travel options restricted by war, limited budgets to domestic, regional destinations, Klook said
By Beatriz Marie D. Cruz, Senior Journalist
THE FILIPINO travel industry remains strong, although many have shifted to domestic destinations and nearby Asian countries to cut costs, according to travel booking platform Klook.
“In the second half, we see a continued demand for travel. Filipinos still choose to travel but it has started to vary according to their budget,” said Klook Philippines General Manager Michelle Ho. BusinessWorld.
“Because of the uncertainty that is happening around the world, Filipinos are choosing to stay close to home,” he said.
The rise in oil prices due to the Middle East crisis has led to an increase in housing in Metro Manila and nearby provinces such as Pampanga and Tagaytay, said Ms. Ho.
Places like Palawan, Boracay and Cebu are also in demand this year, while there has been growing interest in Negros Island and the Cordillera Administrative Region.
Based on bookings made on the Klook platform, the top outbound destinations include Vietnam, Thailand and China, said Ms Ho.
The effects of the global oil shock on transportation and utility costs have eroded purchasing power, disrupting discretionary spending on items such as food, luxury retail, and tourism.
Although Filipinos have grown more budget-conscious when traveling, they are still willing to pay premiums for family-friendly experiences and activities at Klook, Ms. Ho said.
“The price has increased in importance for Filipinos,” he said. “What's interesting is that from experience, Filipinos choose to spend less money than usual.”
Since 2014, Klook has digitized travel services through its integrated portal for booking accommodation tickets, tours, public transport, and activities.
Ms. Ho noted that the Philippines is one of the top markets most influenced by travel-related content on social media platforms such as TikTok.
The company is looking to increase investment in its Klook Kreator Program – a network of travel content creators – which has more than 4,000 creators so far.
Klook has begun rolling out its Kreator Shop, a personal digital storefront that allows travel promoters and content creators to list their favorite hotels, tours, and activities while earning a commission.
This year, Klook is looking at double-digit growth in sales, similar to last year, driven by domestic and regional travel bookings.
“I think the biggest difference is the destinations. That has changed a lot since the crisis,” he said.
“Hong Kong and Japan were among the strongest areas last year. It's only this year that we've started to feel (the demand) for domestic properties growing,” Ms.
To spur growth, Klook is tapping into growing sports and music tourism, using high-demand events like the US Open and K-pop group BTS' world tour to drive stadium bookings, he added.
