Indonesia is set to overtake Thailand as Southeast Asia's largest travel market in 2026. The shift comes as a fuel shock from the U.S.-Iran War slows regional growth to 2%, reaching $64.1 billion. Higher fares and route cuts are pressuring airlines and leaving hotel bookings flat. Online bookings keep climbing, set to pass $50 billion by 2029, with OTAs capturing 42% of all bookings. Phocuswright's new report tracks the fallout.