Working in Market - Malaysia

Distribution system

The travel distribution landscape in Malaysia has historically been fragmented, though it has seen some consolidation since the pandemic. The top five travel brands represent 30% of air ticket sales to Australia, up from 22% in 2019. This shift suggests that larger travel brands have strengthened their market positions, and this could make it more challenging for smaller agencies to compete.  

Consumers in Malaysia are using multiple sources to plan travel. Recommendations from friends and relatives are highly influential in shaping and inspiring holidays plans.  

Online bookings are growing rapidly in Malaysia amongst the Free and Independent Traveller (FIT) segment, particularly for flights. The online environment is providing consumers with extensive destination information, and the ability to conduct price comparisons. While YouTube, Facebook and Google reviews are prominent online sources, consumers also canvass multiple websites. Accelerating technological innovation in personalised content will amplify the pivotal role of online sources in travel planning. 

Planning travel to Australia demands significant time and financial investment given its diversity of destinations and varied climate. This prompts meticulous planning ahead of the trip. Almost 80% of travellers plan most details ahead of their trip, including ground transport, places to visit and accommodation. 

Wholesalers/large agents

Commission level: up to 15%

• There is no formal distinction between wholesalers and retail agencies. A few large travel agencies such as Apple Vacations, Forever Travel, Corporate Information Travel, Sedunia Travel, Golden Deluxe, Golden Tourworld, Holiday Tours and Travel, Malaysian Harmony and Parlo Tours take reservations from consumers through their retail network whilst at the same time distribute their packages through smaller travel agencies. 
• GD (Golden Destinations) is a Core Brand from ICE Holidays, they are the leading B2B Travel Wholesaler in Malaysia. GD offer their ready-made products and packages, with advertisements and promotions support to smaller travel agencies which have limited access to inbound tour operators and do not undertake consumer advertisement. 

Retail agents

Commission level: up to 10%

• Retail travel agencies usually have a shop front and offer travel advice to consumers. There are approximately 2,000 outbound travel agencies registered with the Malaysian Association of Tour and Travel Agents (MATTA) and Malaysian Chinese Tourism Association (MCTA). 
• With increasing interest from the Free and Independent Traveller (FIT), more travel agencies are organising their own tour packages to meet customers’ demands, rather than relying solely on packages developed by the larger agencies or wholesalers.  

Online travel agents

• All major retail agencies have an online presence, and their online business is growing. However, the number of direct consumer enquiries and visits to offline agents remain.  
• Key Online Travel Agencies in Malaysia include Trip.com, Traveloka, Agoda.com, Booking.com, Airbnb, Klook, Expedia, hotels.com and KKday. 
• Airline websites are increasing in popularity for flight and accommodation bookings, especially those with popular services to Australia such as Malaysia Airlines, Air Asia X, Batik Air, Singapore Airlines, Scoot, Qantas and Jetstar. 

Aussie Specialists

• The Aussie Specialist Program is the primary platform for Tourism Australia to train and develop front line travel sellers to best promote Australia. 
• There are over 1,100 qualified Aussie Specialists in Malaysia. This includes 30 ‘Premier Aussie Specialists’, recognised with Premier status for their extensive knowledge of the destination, commitment to selling Australia and ongoing learning via the Aussie Specialist Program. 

Inbound Tour Operators

Commission level: up to 20%

• Inbound tour operators (ITOs) remain a key link in the distribution of products in the Malaysian marketplace. However, there is a noticeable trend in direct deals with hoteliers and operators, for accommodation and day tours. ITOs also handle a large proportion of FIT, incentive groups and non-group itineraries. 

Trends

Distribution

• Malaysian travellers visiting Australia increased by 15% year-on-year (203K) as of December 2024, with more than 80% being repeat visitors. Total spend reached AUD$901 million, with the average spend per trip at AUD$4,964. This market is consistently growing, and there is demand from Malaysians who are keen to return to Australia for more. 
• The top factors driving destination decisions for Malaysians are how easy the destination is to get to, value for money, safety and if the destination is family friendly. Malaysians often travel in family or small groups.  
• The structure and function of distribution channels in this market is complex and changes rapidly. Consumers tend to use a combination of traditional distribution partners and online options to research and book travel. 
• Whilst FIT is a significant business for Australia, Group travel is expected to be a vital sector for safety conscious consumers. 
• Most FIT consumers book flight and accommodation online, while some are using FIT specialised agents.  
• Groups tend to travel during peak season when the major holidays occur such as school holidays, Chinese New Year, Hari Raya, Christmas and New Year’s Eve. The booking lead time is three to six weeks prior to the peak season. FITs travel more during the off-peak months and have a shorter lead time than group travellers. 
• Weekends combined with public holiday are the most in demand travel pattern. Malaysian consumers also tend to take frequent short break holidays. 
• Cruising companies are aggressively working on gaining market share offering competitive promotion for intra-region and fly-cruise packages to capture outbound travel market share. Increased trade activities such as training, roadshow and famils ensure cruise holidays are top of mind.  
• Major consumer travel fairs are organised by the Malaysian Association of Tour and Travel Agents (MATTA) and Malaysian Chinese Tourism Association (MCTA), usually occurring in March/April (Kuala Lumpur, Ipoh, and Penang), April (Johor), July (Penang), August/September (Kuala Lumpur, Ipoh, and Johor). 
• Specialty tours for international sports such as marathons, golfing, cycling and major events such as Vivid Sydney, Melbourne Cup, Food & Wine Festival, and music concerts are growing for Malaysia visitors. 
• Klang Valley (Kuala Lumpur, Selangor and its surrounds) is the main source market for Australia. The city has the highest concentration of people who can afford to travel, as well as the best connectivity with both direct services and one stop services to Australia. 
• Penang is the second-largest city and a developing market for Australia. The market is more traditional than Klang Valley and prefer to travel in groups. However Free Independent Travel (FIT) segment is also growing. 

Planning and purchasing travel

• Malaysia is a mature market, and many consumers have a solid knowledge of Australia. Most travellers prefer to plan itineraries and pre-book all/most activities prior to travel.  
• Out of region travellers from Malaysia are split evenly across gender and spread across all age groups, with a good spread also seen across regions. Three in ten are high yield travellers. 
• Travel has become part of the Malaysian lifestyle with an average 2-3 short haul and 1-2 mid to long haul holidays per year. 
• Malaysian travellers think ahead for OOR travel, with three quarters suggesting that every or most details of their trips are planned in advance. When deciding the best time of year to travel, good deals/promotions and the weather conditions at the destination are key considerations. 
• Airlines observed robust demand in premium travel segment throughout 2024 despite operation setback and 18% reductions in flight capacity. This indicates a sustained interest among Malaysian travellers in higher end travel experiences. 
• Malaysian travellers have either booked or considered a destination based on the influence of tv shows or movies.  
• Malaysian travellers are increasingly relying on digital platforms and social media for travel inspiration and planning. Platforms like TikTok are influencing travel decisions, with trends such as “grocery store tourism” gaining popularity among user seeking unique experiences 
• Consumers in Malaysia are value conscious and actively review a range of destinations and information sources, seeking favourable deals before making travel purchases. 
• Travel search engines are important information sources for consumers as they expand search options beyond flights and hotels to packages and car hire. These travel search engines are also partnering with user-review sites and affiliating content to major internet portals and media sites. 
• When buying travel products consumers tend to refer to a mix of information sources, this includes general internet search, reference to guidebooks, visiting travel agents or NTO websites and brochures. 

Planning a visit to market

Top tips for sales calls

• Malaysian travel trade partners value personal relationships and loyalty. Persistent visits and contact can assist in this process. 
• Tourism Australia has an office in Kuala Lumpur. Make your first call to the Tourism Australia office to receive the latest market information and provide a product update. 
• Avoid sales calls on a Monday and the week prior or during major holidays, school holidays and travel fairs. 
• Plan and combine visits that are in the same geographical area so you can maximize the number of sales calls and minimize commuting times. 
• The best time of year for sales calls is after Chinese New Year, April and mid-June to August and October. 
• Sales calls should focus on agents in Klang Valley at least twice a year, and in the secondary cities of Penang, Ipoh, and Johor at least once a year. 
• Value-add or competitive pricing offers during the low season travel period (March to August) are useful to trigger tactical campaigns with travel agents in particular consumer travel fairs in March/April. 
• For more general information on sales calls and planning a visit to market, please see Tourism Australia’s 'Tourism Export Toolkit'.