For Filipinos bitten by the travel bug, rising prices may change the destination, shrink the budget or shorten the itinerary—but they are not necessarily canceling the trip.
As peak travel season approaches, higher airfares and fuel surcharges are pushing travelers to rethink their plans and seek destinations where their pesos can stretch further, according to Philippine Travel Agencies Association (PTAA) President Jaison Yang.
“Tourism activity will continue, although we anticipate softer demand compared with 2025,” Yang said in an interview.
Rather than abandon travel altogether, some Filipinos are postponing vacations or switching to more affordable destinations as they weigh the cost of getting there against the price of accommodation, food and activities.
Japan is expected to remain a favorite among outbound travelers, helped by an attractive yen exchange rate that makes daily expenses more manageable despite higher airfares.
Interest is also growing in less conventional destinations, including Kazakhstan, Uzbekistan, Georgia and Armenia. Yang said these countries appeal to travelers seeking cultural experiences, affordability and relatively accessible visa policies.
Meanwhile, expensive long-haul destinations such as Europe and the United States could face softer demand as travelers reconsider the full cost of their trips. Japan, China, Vietnam and parts of Central Asia may prove more resilient because lower on-the-ground expenses can help offset the cost of flights.
The same budget-conscious approach is reshaping domestic travel.
Yang flagged Bohol as a growing concern amid noticeable increases in travel costs, potentially encouraging tourists to consider more affordable alternatives such as Dinagat Islands, Samar and Leyte.
But cheaper destinations must also be accessible. Limited transport connections, infrastructure gaps and underdeveloped tourism facilities can make reaching less-visited places more complicated, potentially eroding the savings travelers hope to gain.
Inbound tourism, meanwhile, could provide a lift toward year-end. Yang remains cautiously optimistic that the Philippines can attract 6.8 million foreign visitors, with the December holidays potentially drawing more tourists from the United States and Europe.
For travel agencies, however, 2026 has been a difficult year. Yang described it as “a period of survival,” as rising costs and economic pressures force customers to reconsider their travel budgets.
Still, postponed trips are not necessarily lost business. Demand could strengthen if oil prices ease and travelers regain confidence in their spending power.
“If the industry managed to endure the pandemic, the current combination of rising travel costs and economic pressures presents another serious challenge,” Yang said.
The travel bug appears, for now, to be holding its ground. Filipinos may trade Europe for Asia, an expensive resort for a quieter island, or a lengthy holiday for a shorter escape. The desire to travel remains, but the destination increasingly depends on what the wallet can afford. (Irma Isip)
