Localization Key to Success in Asia’s Booming Hospitality Sector

A report from digital travel platform Agoda highlights the significant advantages of localization in the hospitality industry across Asia. Hotels that have embraced culturally fluent strategies are outperforming their peers by 59%, underscoring the importance of tailoring experiences to meet travelers’ diverse cultural, linguistic, and behavioral preferences.

Localization as a Competitive Advantage

Agoda’s report, “Tailored to Win: Capturing Asia’s Tourism Boom,” reveals that hotels adopting advanced localization strategies have seen a marked improvement in guest satisfaction and loyalty. Specifically, 99% of these hotels reported higher satisfaction scores, and 91% noted that guests are willing to pay more per room. This trend is particularly significant as Asia emerges as the world’s fastest-growing travel market, with over 2 billion middle-class consumers driving the demand for more personalized travel experiences.

Growth in Regional Travel

Asia’s share of global international arrivals has increased significantly, rising from 9% in 2022 to nearly 28% by early 2025. This growth is primarily attributed to rising incomes, improved connectivity, and government-led tourism initiatives. However, this growth brings increased complexity to traveler expectations. The concept of the “Asian traveler” is evolving, with diverse cultural, culinary, linguistic, and payment preferences that hotels must accommodate to remain competitive.

Key Insights from the Report

The report identifies five key insights that define the current phase of regional tourism:

1. Localization as a Competitive Edge: Hotels that culturally and linguistically adapt to guests from neighboring markets, such as China, Japan, South Korea, and Singapore, are witnessing stronger demand.

2. Varied Localization Depth: While many hotels have implemented basic language and payment adaptations, only about one-third have achieved “integrated tailoring,” where personalization extends across marketing, booking, and on-site experiences.

3. Sophistication Yields Returns: Hotels at advanced localization stages report a 59% stronger RevPAR impact, with increased satisfaction, repeat bookings, and guest willingness to pay a premium.

4. Data Gaps: A significant number of hoteliers (55%) cite limited awareness of guest cultural preferences, and 44% express uncertainty about ROI, hindering targeted localization investments.

5. Role of Online Travel Agencies: OTAs like Agoda are crucial in bridging capability gaps, with nearly 80% of advanced localizers relying on them for guest insights, cultural data, and digital tools for multilingual and multi-currency engagement.

Andrew Smith, Senior Vice President of Supply at Agoda, emphasizes the importance of understanding the nuances of each market. He states that hotels advancing their localization strategies see up to 95% higher repeat bookings and stronger guest satisfaction. Agoda supports its partners by providing multilingual access, local payment support, and data-driven programs to help hoteliers connect authentically with travelers worldwide.

Future Opportunities

As intra-Asia travel continues to grow, hotels’ opportunity lies in transitioning from standardization to true localization. This involves designing experiences that are familiar, seamless, and culturally authentic for every guest. Agoda’s report encourages hoteliers and accommodation partners to audit their guest mix, invest in multilingual and culturally trained staff, and collaborate with digital platforms that offer the insights and tools necessary to deliver personalized, data-driven experiences at scale.