By Beatriz Marie D. Cruz, Senior Reporter
THE FILIPINO appetite for travel remains strong, though many have shifted their focus to domestic destinations and nearby Asian countries to limit spending, according to travel booking platform Klook.
“For the second half, we do see sustained demand for travel. Filipinos are still choosing to travel but it has started to vary depending on their budget,” Klook Philippines General Manager Michelle Ho told BusinessWorld.
“Because of the uncertainty that’s happening all over the world, Filipinos are choosing to travel closer to home,” she said.
Rising oil prices as a result of the Middle East crisis have led to an increase in staycations in Metro Manila and nearby provinces like Pampanga and Tagaytay, Ms. Ho said.
Destinations like Palawan, Boracay and Cebu also remain in demand this year, while there has been a growing interest in Negros island and the Cordillera Administrative Region.
Based on bookings made on the Klook platform, top outbound destinations include Vietnam, Thailand and China, Ms. Ho said.
The effects of the global oil shock on transport and utility costs have eroded purchasing power, affecting discretionary spending for items like dining, luxury retail, and tourism.
While Filipinos have grown more budget-conscious when traveling, they are still willing to pay a premium for experiences and family-friendly activities on Klook, Ms. Ho said.
“Price has increased in terms of importance amongst Filipinos,” she noted. “What’s interesting is that for experiences, Filipinos are choosing to spend a little bit more than usual.”
Since 2014, Klook has leveraged digitalization of travel services with its unified portal for booking tickets for accommodations, tours, public transport, and activities.
Ms. Ho noted that the Philippines is one of the top markets strongly influenced by travel-related content on social media platforms like TikTok.
The company is looking to increase investment in its Klook Kreator Program — its network of travel content creators — which numbers over 4,000 creators to date.
Klook has begun rolling out its Kreator Shop, a personalized digital storefront that allows travel influencers and content creators to list their favorite hotels, tours, and activities while earning a commission.
For this year, Klook is targeting double-digit growth in sales, similar to last year, driven by bookings for domestic and regional outbound travel.
“I think what really is the big difference is the destinations. That has changed a lot since the crisis,” she said.
“Hong Kong and Japan were among the strongest destinations last year. It’s only this year that we started to feel (demand for) domestic destinations growing,” Ms. Ho noted.
To fuel growth, Klook is tapping into the rise of sports and music tourism, leveraging high-demand events like the US Open and the world tour of K-pop group BTS to drive platform bookings, she added.
