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In focus
- Traveloka’s profit before tax tanks despite rising revenue
- We take another look into the ambitions behind Traveloka’s move to Singapore
- Moonshot AI seeks US$5 billion through a potential Hong Kong IPO
Hello reader,
Thanks to travel apps, booking flights and hotels has become so effortless that we often take it for granted. Behind the scenes, though, these platforms face countless issues, often in the form of cancellations and refund requests.
Automating that work could help travel platforms grow without their service costs rising at the same pace. For Traveloka, in particular, the appeal seems easy to see.
Our latest SEA financials tracker shows that the traveltech unicorn’s revenue rose 17% to US$401 million in 2025. Yet its profit before tax fell 71% to US$11.9 million as gross margin narrowed and expenses – including tech and content expenses – increased.
In February 2026, Traveloka confirmed job cuts while saying it would continue hiring, particularly in AI, data, product, and engineering.
That brings a different set of costs into the equation. As explored in our recent piece about AI and travel, hiring AI talent, connecting old booking systems, and running the tech can be expensive.
Practical AI use cases already exist in some travel apps, such as AI agents that reconfirm hotel bookings and chase airline refunds. But getting more work done through this approach doesn’t necessarily mean spending less overall.
Traveloka’s rising tech and content expenses could hint at rising AI expenditure, though it doesn’t tell us what AI also contributed in savings. But these numbers make the company’s hiring priorities worth watching: Can the next round of tech investment help it keep more of the revenue it earns?
Glenn Kaonang, journalist
Top Story
SEA financials tracker: Traveloka profit drops 71% despite gains
Photo credit: Traveloka
Traveloka’s revenue rose 17% to US$401 million in 2025, but narrower gross margins and rising expenses cut its profit before tax down by 71%. The results show how growth can coexist with weakening profitability.
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