SKIFT TAKE
The Asia-Pacific region has become the epicenter of new luxury demand — faster-growing, more diversified, and far more sustainable.
The Asia-Pacific region has been the fastest-growing destination in travel post-pandemic, surpassing every other region and anticipating strong growth ahead. Indeed, according to Skift Research, the Asia-Pacific region outperformed all other global regions across industry sectors in Q3 2025.
Of course, any market-level analysis has nuances, and within the overall performance across APAC is a deeper trend that will have significant implications for the future of the global industry. Specifically, luxury travel in APAC has not only grown the fastest, but also has held its profitability better than the wider market. In other words, APAC is not only rebounding — it’s redefining what luxury performance looks like.
SkiftX spoke with Tony Wagner, chief commercial officer, Onyx CenterSource, to take a deeper dive into the numbers, explore what this evolving landscape means for hotel distribution, and identify actionable strategies for constructive and productive partnerships between suppliers and travel management companies in the new environment.
SkiftX: Onyx data shows that luxury travel room nights in APAC have grown by more than 90% since 2022. How does this compare to other regions?
Tony Wagner: The growth in Asia Pacific isn’t just strong — it’s transformational. Luxury room nights have increased by more than 90% since 2022, outpacing every other region and even doubling APAC’s own pre-pandemic trajectory. While Europe and North America remain steady, their luxury markets have matured and flattened. APAC, on the other hand, has become the epicenter of new luxury demand. It’s faster-growing, more diversified, and far more sustainable.
It’s the first time in recent memory that luxury travel has overtaken mainstream travel growth in Asia, signaling a realignment of global travel economics. For decades, luxury travel was anchored in Western corridors such as Parisian boutiques, Amalfi villas, or Caribbean resorts. Today, it’s Bangkok rooftops, Kyoto ryokans, and the Maldives’ private atolls commanding both the traveler’s wallet and the industry’s attention.
What are the key drivers behind this surge, and what is the impact it’s having on the travel distribution ecosystem, such as hotels, agencies, GDS, corporate travel, etc.?
What makes this surge so compelling is who’s driving it and how the industry is responding. A new generation of affluent travelers across India, Thailand, Indonesia, and Japan is seeking authenticity, exclusivity, and cultural immersion rather than opulence. They’re willing to pay more but expect higher precision in service, and that extends to how hotels engage with agencies.
Hotels in the region have redefined their partnerships. Rather than focusing on volume, they’re building performance-based commission models that reward reliability, conversion, and client retention. Large TMCs and independent luxury advisors are being brought into preferred-supplier programs designed around trust and efficiency.
The impact is clear in the data: Luxury travel yields have held steady, while standard travel yields have declined. In short, APAC’s luxury ecosystem is proving that smarter collaboration pays off.
How does this growth compare to other sectors in APAC, and why is that delta so significant?
The difference between luxury and mainstream travel is where the real story lies. While overall travel volumes have recovered, luxury yields have remained stable, even as hotels have raised ADRs and tightened commission structures elsewhere. The yield for wider-market travel has dropped by almost a full percentage point since 2022, showing that hotels are becoming more selective about which business they incentivize.
Luxury bookings, with longer stays and higher reliability, are being rewarded, not because they bring volume, but because they bring value. This stability tells us that APAC’s luxury market is more than a rebound — it’s now the region’s economic backbone for travel profitability.
How are these trends in luxury travel in APAC setting a new standard for hospitality demand?
Luxury travel is redefining what success looks like in hotel distribution. The conversation has shifted from chasing occupancy to building operational excellence. Hotels that pay faster, communicate clearly, and align incentives with agencies and independent contractors are becoming the new gold standard.
It’s also reshaping expectations around trust. In today’s market, commission transparency and payment speed are as much part of the guest experience as a concierge or spa service. That’s the new definition of premium: not just elevated design, but elevated dependability.
Can you share any specific examples of destinations, sectors (e.g., leisure, corporate), property types (e.g., resort, urban), etc., where this shift has been most pronounced?
The top five markets, which include Australia, India, Japan, Thailand, and Indonesia, tell a fascinating story.
- Japan and Thailand are leading luxury performance with strong ADR premiums and robust payment reliability.
- India’s domestic luxury travel has surged, narrowing the gap with Australia’s mature market share.
- In Indonesia and the Maldives, resort stays are longer, and ADRs are hitting record highs as travelers seek secluded, high-end experiences.
Each market is proving that “luxury” in Asia is no longer niche. It’s mainstreaming into the way high-value travel is designed, booked, and paid for.
What are the implications for distribution partnerships, i.e., between hotels and travel management companies/online travel agencies?
If there’s one takeaway, it’s this: Trust is the foundation for all parties to benefit from in the luxury sector.
For hotels, that means doubling down on transparency for faster reconciliations, accurate commission data, and consistent agency communication. For agencies and TMCs, this means prioritizing partners who deliver on payment reliability and yield stability, rather than just focusing on headline rates.
At Onyx, we see this play out every day through OnyxInsights. When both sides operate from the same data and trust the flow of commissions, they can identify where performance is strongest and where opportunities still lie. In a region where luxury travel has grown by more than 90%, the brands that thrive won’t be those that sell the most rooms, but those that build the most dependable partnerships.
Since 2024, Skift and Onyx CenterSource have partnered to deliver “The Data Snap,” a recurring article series that paints a clearer picture of the dynamic hotel booking landscape, empowering hotels and agencies to make data-driven decisions that help them build productive partner relationships and drive more revenue.
OnyxInsights offers a comprehensive view of the industry landscape, enabling hotels and TMCs to make well-informed decisions and better serve their clients and partners. Onyx CenterSource processes over 100 million transactions annually on behalf of 200,000 agencies and 150,000 hotels globally, representing nearly $2.1 billion in hotel commission payments. Visit onyxcentersource.com to learn more.
This content was created collaboratively by Onyx CenterSource and Skift’s branded content studio, SkiftX.
