KUALA LUMPUR: Traveloka is banking on double-digit inbound momentum and domestic recovery to unlock fresh commercial upside in 2026 as the country ramps up its tourism push.
Its vice-president for commercial, Charles Wong, said forward indicators across the platform point to sustained demand expansion, underpinned by a broader international rebound and policy support tied to Visit Malaysia 2026.
“For international inbound travel, we are seeing a solid rebound in bookings from markets outside Southeast Asia, with growth well into double-digit territory year-on-year,” he told SunBiz in an exclusive interview.
“Regional demand is also improving, though at a slightly more moderate pace compared to long-haul markets.”
Wong said domestic travel, which softened last year, is expected to turn the corner, supported by tax relief measures and nationwide promotional efforts encouraging Malaysians to rediscover local destinations.
“All signs point to continued growth in inbound demand and a rebound in domestic travel throughout 2026, supported by government-backed initiatives,” he said.
From a source market perspective, Indonesia continues to dominate as Malaysia’s top inbound driver on the platform, with both flight searches and hotel spend trending higher year-on-year. Wong noted that while Indonesia’s affinity for Malaysia is well established, recent gains suggest that targeted promotions are translating into measurable booking growth.
Singapore, meanwhile, is emerging as a high-growth contributor, outperforming 2024-2025 averages and expanding beyond traditional travel corridors.
“We are seeing a pronounced uptick in both flight and accommodation bookings from Singapore. Travellers are increasingly venturing beyond Kuala Lumpur and Johor to explore more of the country,” Wong said, adding that both Indonesia and Singapore are lifting the overall inbound outlook in 2026.
Beyond Peninsular Malaysia, Sabah and Sarawak are registering some of the fastest growth rates on the platform, signalling a structural shift in traveller preferences toward nature- and experience-led destinations.
“Kota Kinabalu has seen the value of flight bookings rise about 50% year-on-year, with transaction volumes up roughly 30%. It now accounts for nearly a fifth of all domestic flight searches,” Wong said. “Kuching is on an even steeper trajectory, with booking value roughly doubling and hotel spend rising close to 60%.”
He added that this momentum reflects growing appetite for destinations such as Kota Kinabalu and Kuching, aided by improving connectivity and targeted promotional campaigns.
On the domestic front, Wong highlighted the Malaysian-Chinese segment as one of the fastest-growing user cohorts on Traveloka, with booking activity accelerating sharply in the second half of 2025.
“This segment now represents a significant share of our domestic booking volume and is a key driver of overall growth. Its strong digital engagement and distinct travel patterns provide valuable insights into how we tailor our offerings,” he said.
While demand is strengthening, pricing strategy remains a key focus for accommodation partners navigating regional competition. Wong said Traveloka is leaning into data analytics to help operators optimise average daily rates without sacrificing competitiveness.
“Our role is to provide partners with visibility into market trends, customer preferences and segment-level performance, enabling more informed pricing and distribution decisions while maintaining value for guests,” he added.
Wong sees Visit Malaysia 2026 as a catalyst not just for visitor growth, but for deeper ecosystem partnerships, particularly among small and medium-sized tourism operators.
“The campaign opens up opportunities to collaborate more closely with government agencies and tourism boards, while also empowering SMEs and community-based operators to reach a wider Southeast Asian audience through our platform,” he said.
He added that a packed calendar of cultural, sports and lifestyle events, alongside a stronger spotlight on emerging destinations such as Perak, Pahang and Terengganu, will encourage longer stays and repeat visits.
Strategically, Traveloka aims to differentiate itself from other online travel agencies through its regional data capabilities and localised supply network.
“We have a deep understanding of Southeast Asian traveller behaviour, and we are aligning closely with national tourism priorities to champion lesser-known destinations. At the same time, we are expanding partnerships to offer more comprehensive access to transport, accommodation and attractions,” Wong said.
Separately, Traveloka is exploring a collaboration with Resorts World Genting to tap Indonesian outbound demand through bundled, app-based travel packages combining flights, hotels and attractions.
“The goal is to deliver a seamless, integrated booking experience for travellers seeking convenient short getaways. Details are still being finalised and will be announced in due course,” Wong said.
He added that discussions on potential familiarisation trips and media initiatives tied to the partnership are ongoing.
With inbound demand strengthening, domestic travel poised for recovery and digital platforms playing a bigger role in distribution, Wong said 2026 could mark a pivotal year for Malaysia’s tourism economy.
“The fundamentals are in place for sustained growth, and we see significant headroom across both inbound and domestic segments as Malaysia builds on its position as a leading destination in the region,” he said.
