Iloilo Named Among Asia’s Most Affordable Summer Spots

Iloilo has been ranked one of Asia’s most affordable summer travel destinations, according to a new report released by digital travel platform Agoda.

The Philippine city joins the likes of Surabaya, Indonesia – which topped the list with average room rates of $35 per night – as well as Tirupati (India), Hat Yai (Thailand), Dalat (Vietnam), Kuching (Malaysia), Nagoya (Japan), Kaohsiung (Taiwan), and Daejeon (South Korea).

Agoda’s rankings reflect a rising trend among millennials and Gen Z travelers who are seeking budget-friendly accommodations without sacrificing travel experiences.

“Today’s travelers are increasingly prioritizing value-driven experiences, particularly among younger, price-conscious demographics,” said Andrew Smith, senior vice president of supply at Agoda.

Data from Agoda show that 56 percent of Gen Z travelers aim to keep nightly stays under USD 50 per person, with 44 percent of millennials expressing similar preferences.

This growing preference for affordability presents new opportunities for hotel operators, especially in emerging secondary cities like Iloilo, to increase occupancy while offering competitive rates.

“Affordability doesn’t necessarily mean lower yields,” Smith said. “For hotels and airlines, this presents a powerful opportunity to engage guests across the full travel journey by delivering personalized, data-informed value that drives both loyalty and repeat bookings.”

Agoda is urging hoteliers to adopt yield management strategies, such as dynamic pricing and value-added service bundles, to better cater to this evolving market.

Suggested initiatives include budget summer packages that combine low-cost room rates with curated local experiences—such as food tours or cultural excursions—to boost booking value and guest satisfaction.

Iloilo, with its blend of heritage architecture, regional cuisine, and coastal attractions, is well-positioned to attract this value-conscious demographic.

Hospitality experts are also being encouraged to offer flexible cancellation policies and multiple payment options to align with the expectations of digitally savvy travelers.

Statista projects that online travel sales will account for 75 percent of Asia’s travel revenue by 2029, highlighting the importance of digital engagement and pricing adaptability.

The rise of solo travel, particularly among women from Hong Kong and Thailand, adds another dimension to this trend, prompting Agoda to recommend short-lead, budget-friendly promotions targeting single travelers.

By bundling special solo rates, last-minute deals, or perks such as local experiences, hotels in cities like Iloilo can tap into this spontaneous and growing market segment.

In addition to affordability, culinary demand remains a powerful motivator, especially among travelers from South Korea, Japan, Thailand, and Taiwan.

Agoda suggests hoteliers can collaborate with local chefs or offer seasonal dining experiences to further enhance their value proposition.

“With over 5 million holiday properties, more than 130,000 flight routes, and over 300,000 activities, Agoda provides endless possibilities for creating unforgettable travel experiences,” the company stated.

For more strategic insights, Agoda recommends visiting its Partner Hub at https://partnerhub.agoda.com.