Saturday, June 7, 2025

Asia Pacific (APAC) has seen a substantial rise in corporate travel as companies opt for extended stays and take advantage of reduced average daily rates (ADR). Destinations like Taiwan, Hong Kong, Tokyo, and Malaysia are gaining traction among business travelers, according to SilverDoor’s latest quarterly report on global travel and serviced apartment trends.

The growing preference for longer stays marks a shift in corporate travel behavior, where companies now prioritize cost-effective yet high-quality accommodation options. Taiwan, particularly Taipei, has experienced a significant increase in corporate bookings, while Hong Kong, Tokyo, and Malaysia remain attractive destinations for business travel, offering a balance of affordability and service excellence.

The most considerable decline in ADR across the APAC region is observed in Singapore, where the current ADR stands at S$243 (US$189), a 34% reduction compared to the previous year. This significant drop is part of a broader trend across the region, with several key markets experiencing similar reductions in ADR.

For comparison, the Americas recorded an ADR of US$193, down 10.9% year-over-year and 9.1% from the last quarter. In the EMEA (Europe, the Middle East, and Africa) region, ADR decreased slightly by 1.3%, holding at £148 (US$201).

The average length of stay in APAC remains stable, with an average of 62-night stays, which is just one night shorter than last year and one night longer compared to the previous quarter. This consistency highlights a continued preference for long-term accommodations, as businesses prioritize flexibility and cost savings.

In contrast, the Americas show a slightly longer average stay of 65 nights. In EMEA, the average length of stay has decreased by 17 nights compared to the previous quarter, likely reflecting businesses opting for shorter trips in response to ongoing geopolitical uncertainties.

Lead times—the gap between booking and travel—remain consistent across APAC, averaging 38 nights. This is one night shorter than the previous year and three nights shorter than last quarter, suggesting that businesses continue to plan travel well in advance, despite shifting market conditions.

In the Americas, lead times have dropped slightly to 48 nights, while EMEA saw an increase to 45 nights, reflecting the additional time needed to secure approvals for travel to higher-risk destinations.

April 2025 marked a positive period for the APAC hotel industry, with 10 out of 16 of the region’s largest countries showing improvements in occupancy, ADR, and revenue per available room (RevPAR). Most countries, except China, Singapore, and Thailand, reported increases in RevPAR, highlighting the resilience of the APAC hotel sector.

The influence of calendar shifts, particularly religious holidays like Ramadan and Easter, was noticeable, affecting travel patterns in April and contributing to the variations in performance.

Japan continues to dominate the APAC region in terms of ADR growth. The country reported its highest occupancy levels in the past 12 months in April, boosted by the cherry blossom season, which draws visitors globally. The favorable yen-to-dollar exchange rate further enhanced Japan’s attractiveness, though this benefit is starting to diminish. Additionally, Expo 2025, held in Osaka, is expected to continue benefiting Japan’s tourism and corporate travel market.

Taiwan and South Korea have seen impressive gains in ADR and occupancy. Taiwan, particularly Taipei, has become an increasingly popular destination for business travelers, with strong performance driven by higher occupancy rates. South Korea has also seen positive results, with key markets such as Seoul, Incheon, and Busan showing growth in both occupancy and ADR.

China, the largest market in APAC, has shown mixed results in April. While markets like Macau and Sanya experienced double-digit growth in RevPAR, other cities such as Beijing and Shanghai saw declines in performance due to lower ADR. The overall trend reflects a slowdown in occupancy, which can be attributed to rising hotel supply across the country.

In Central South Asia, countries like India, the Maldives, and Sri Lanka reported positive results in April, driven by increases in both ADR and occupancy. India, in particular, saw significant growth in key markets such as Mumbai, New Delhi, Bengaluru, and Rajasthan. The Maldives continued its upward trend, benefiting from its high ADR, while Sri Lanka showed positive performance for the first time in 2025.

April brought strong results for Australia and New Zealand, with both countries experiencing significant growth in RevPAR. In Australia, New South Wales posted double-digit increases, while New Zealand’s South Island markets performed well. Fiji also showed recovery in April, driven by the holiday calendar shift from Easter and Passover, which typically boosts leisure travel.

Southeast Asia showed a diverse performance, with countries like Vietnam and Indonesia posting positive results driven by higher ADR and occupancy. However, Malaysia and Singapore experienced mixed outcomes. Malaysia showed solid performance, while Singapore saw a slight decline in occupancy. The Philippines and Thailand experienced a drop in occupancy, which impacted overall RevPAR, although areas like Phuket showed growth due to higher ADR.

In conclusion, Asia Pacific is becoming an increasingly sought-after destination for corporate travel, with longer stays and reduced rates making it an appealing choice for businesses. Key markets such as Taiwan, Hong Kong, Tokyo, and Malaysia are driving this growth, while the region’s varied performance across different markets highlights its resilience and adaptability in the face of evolving global trends.