Surabaya Tops Asia’s Best Cheap Holiday Destinations for 2025: Inside Agoda’s Budget Travel Boom

Surabaya Leads Asia’s Most Affordable Holiday Destinations in 2025

In a year when value-driven travel is shaping the way millions plan their getaways, Surabaya, Indonesia, has emerged as Asia’s top cheap holiday destination according to digital travel platform Agoda. With average hotel room rates at just $35 per night, Surabaya is not only a haven for budget-conscious travelers but also a gateway to rich cultural experiences and natural wonders. The city’s rise to the top of Agoda’s rankings for 2025 reflects broader shifts in travel habits across Asia, where affordability, local flavor, and unique adventures are in high demand.

Surabaya’s recognition is part of a wider trend identified by Agoda, which analyzed booking data and average room rates across nine Asian countries to compile its list of the most budget-friendly summer destinations. The findings reveal a new landscape for travelers seeking to maximize their experiences without overspending, with cities like Kuching (Malaysia), Tirupati (India), and Hat Yai (Thailand) also making the cut.

What Makes Surabaya Stand Out?

Surabaya, Indonesia’s second-largest city, has long been overshadowed by the country’s more famous destinations such as Bali and Jakarta. However, its blend of urban energy, historical sites, and proximity to natural attractions is now drawing attention from travelers looking for both affordability and authenticity.

The city boasts a fascinating mix of Dutch colonial architecture, a sprawling Chinatown, and vibrant local markets. Surabaya’s location in East Java places it within a few hours’ drive of Borobudur, the world-renowned 9th-century Buddhist temple near Yogyakarta, and close to the majestic Mount Bromo, a volcano famous for its sunrise hikes and otherworldly landscapes. These features make Surabaya a strategic base for exploring both urban and natural attractions in Indonesia.

According to Matteo Frigerio, Chief Marketing Officer at Agoda,

“Summer is about making memories, and Agoda provides deals that allow travelers to enjoy more while spending less.”

This philosophy is embodied in Surabaya’s appeal, where travelers can immerse themselves in local culture, cuisine, and adventure without breaking the bank.

Agoda’s Top Budget Destinations in Asia for 2025

Agoda’s 2025 list of the most affordable summer destinations is based on average nightly room rates in the ten most popular cities across nine Asian markets. Here are the top contenders and their average nightly rates:

• Surabaya, Indonesia – $35
• Tirupati, India – $37
• Hat Yai, Thailand – $39
• Dalat, Vietnam – $45
• Iloilo, Philippines – $47
• Kuching, Malaysia – $53
• Nagoya, Japan – $90
• Kaohsiung, Taiwan – $90
• Daejeon, South Korea – $93

These destinations offer a diverse mix of experiences, from spiritual journeys in Tirupati to culinary adventures in Hat Yai, and from the cool highlands of Dalat to the cultural richness of Kuching.

Why Are Travelers Prioritizing Affordability?

The surge in demand for affordable travel is being driven by younger generations, particularly millennials and Gen Z. According to Agoda’s research, more than half of Gen Z travelers (56%) aim to keep their nightly accommodation costs below $50 per person. Millennials share this preference, with 44% seeking similar price points. This value-driven mindset is not just about saving money—it’s about maximizing experiences and making travel accessible to a broader audience.

Andrew Smith, Senior Vice President of Supply at Agoda, explains,

“Today’s travelers are increasingly prioritizing value-driven experiences, particularly among younger, price-conscious demographics. 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.”

Affordability is also influencing the types of experiences travelers seek. Many are looking for destinations that offer more than just a place to sleep—culinary tours, cultural excursions, and adventure activities are increasingly bundled with accommodation to enhance value and satisfaction.

Spotlight on Kuching, Hat Yai, and Other Rising Stars

While Surabaya leads the pack, other cities on Agoda’s list are also gaining attention for their unique offerings and wallet-friendly prices.

Kuching, Malaysia

Kuching, the capital of Sarawak on the island of Borneo, is a cultural gem with a rich heritage and easy access to natural wonders like Bako National Park. With average room rates at $53 per night, Kuching offers travelers a chance to explore indigenous cultures, sample local delicacies, and embark on wildlife adventures without overspending.

Hat Yai, Thailand

Hat Yai has become Thailand’s top budget destination, favored by tourists from Malaysia and Singapore. Known for its bustling markets, street food, and proximity to beaches and islands, Hat Yai offers a vibrant mix of activity and relaxation. Its affordability has secured its place among Asia’s top three budget-friendly destinations for two consecutive years.

Other Notable Destinations

Dalat in Vietnam is renowned for its cool climate, French colonial architecture, and scenic landscapes, making it a favorite among travelers seeking a refreshing escape. Iloilo in the Philippines charms visitors with historical landmarks, beautiful beaches, and a thriving food scene. Nagoya in Japan, Kaohsiung in Taiwan, and Daejeon in South Korea round out the list, each offering a blend of modern attractions and cultural experiences at competitive prices.

How Agoda’s Data Is Shaping Travel Trends

Agoda’s extensive platform, featuring over 6 million holiday properties, 130,000 flight routes, and 300,000 activities, provides a unique vantage point for observing travel trends across Asia. The company’s data-driven approach allows hoteliers and tourism operators to respond to changing traveler preferences, such as the growing demand for affordable, experience-rich packages.

For example, hoteliers are encouraged to create budget packages that combine accommodation with curated local experiences, such as food tours or cultural excursions. Flexible cancellation policies and diverse payment options are also becoming standard, catering to the expectations of digitally savvy travelers who value convenience and flexibility.

Agoda’s insights also highlight the rise of solo travel and culinary tourism. Women from Hong Kong and Thailand are leading the trend for independent adventures, while travelers from South Korea, Japan, Thailand, and Taiwan consistently rank food among their top travel motivators. By bundling culinary experiences with affordable stays, destinations can attract a broader range of visitors seeking meaningful, value-driven journeys.

Micro-Travel and Slow Travel: New Ways to Explore Asia

Beyond affordability, new travel styles are gaining traction in Asia. Micro-travel—short trips lasting a day or an overnight stay—has surged in popularity as busy professionals and families seek quick getaways that fit into tight schedules. Agoda’s data shows cities like Kuala Lumpur, Seoul, Taipei, Manila, and Surabaya are among the top micro-travel destinations, offering rich experiences even for travelers with limited time.

Slow travel is another emerging trend, with destinations like Rayong (Thailand), Kalegowa (Indonesia), and Nha Trang (Vietnam) attracting visitors who prefer to linger and immerse themselves in local culture. This approach allows travelers to form deeper connections with the places they visit, savoring the journey rather than rushing through a checklist of sights.

Comparing Popularity: Most Booked vs. Most Affordable

While Surabaya and other cities top the list for affordability, the most booked destinations in Asia for the first half of 2025 remain the region’s iconic metropolises. According to Agoda’s booking data, Tokyo, Bangkok, Osaka, Seoul, and Kuala Lumpur are the five most popular cities, drawing travelers with their blend of culture, cuisine, and urban excitement.

This contrast highlights a key point: affordability and popularity do not always go hand in hand. While major cities attract large numbers of visitors, emerging destinations like Surabaya and Hat Yai are carving out a niche among travelers who prioritize value and unique experiences over mainstream appeal.

How the Travel Industry Is Responding

The rise of value-driven travel is prompting hotels, airlines, and tourism operators to rethink their strategies. Dynamic pricing, targeted marketing, and the bundling of value-added services are becoming essential tools for attracting budget-conscious travelers. Agoda’s platform enables partners to capitalize on these trends, turning demand for affordable destinations into higher yields and stronger guest loyalty.

For travelers, this means more options, better deals, and the ability to customize trips according to personal interests and budgets. Whether seeking a quick micro-trip, a slow travel experience, or a classic city adventure, Asia’s evolving travel landscape offers something for everyone.

In Summary

• Surabaya, Indonesia, is ranked Asia’s most affordable holiday destination for 2025 by Agoda, with average room rates at $35 per night.
• Other top budget destinations include Tirupati (India), Hat Yai (Thailand), Dalat (Vietnam), Iloilo (Philippines), Kuching (Malaysia), Nagoya (Japan), Kaohsiung (Taiwan), and Daejeon (South Korea).
• The trend toward value-driven travel is especially strong among millennials and Gen Z, who prioritize affordability and meaningful experiences.
• Micro-travel and slow travel are emerging as popular styles, allowing travelers to enjoy short, spontaneous trips or immersive, extended stays.
• Agoda’s data-driven approach is helping the travel industry adapt, offering more flexible, experience-rich, and affordable options for modern travelers.