Indonesian Travel & Tourism Background

Tourism as the second largest Enhance equitable

national income development to all remote area

Prosperity and social media Digital Transformation forming

drive the tourism industry Digital Travel Vendor all travel
development & tourism stake holder
 Indonesia Travel & Tourism - Challenge

No Comprehensive Travel & Limited capability for digital

Tourism Marketplace distribution – Limited API Out

Limited Standardization, Technology remain expensive

Certification and Identification for certain travel & tourism
player
Stake Holder

Ministry of Tourism Indonesia Tourism Board Airliners Hotelier

Restaurant Tourism Object and Attraction Travel Agent & Local Transportations companies
Land Operator
 Benefit for Government

 Government Travel & Tourism Market Place

 Travel & Tourism Data Banks for further analysis

 Generate a standard format of information from all province

 Extensive digital travel data collection

 Identification and Certification platform for Indonesia Travel & Tourism

industry
 Recent developments and the
size of the industry
 The authorities aim to reach 20 million foreign visitors by 2019.
 Most of the recent increase has originated from Asian countries.
 Chinese tourists became the largest source market in 2017, surpassing
Malaysia, Singapore and Australia.

 The tourism product portfolio is mostly culture and nature related,

accounting for 95% (60% and 35%, respectively) of survey respondents’
purpose of visit (Teguh, 2017).
 Only a small share of tourism is related to sport or business events
(5%). Within culture, “culinary/gastronomy or shopping” represents the
largest share (45%) of responses, followed by “city and village tourism”
(35%). Nature-based tourism is focused on ecotourism (45%) and
marine tourism (35%).
 Recent developments and the
size of the industry
 April 2019
Parliamentary and presidential elections were held. It was the first time
in the country's history that the president, the vice president, members
of the People's Representative Council (DPR), members of the People's
Consultative Assembly and members of local legislative bodies were
elected on the same day. Both candidates, Joko 'Jokowi' Widodo and
Prabowo Subianto, promoted a mix of business-friendly, populist and
protectionist policies.

 May 2019
On May 21, 2019, the General Elections Commission declared Joko
Widodo victorious in the presidential election, with more than 55% of
the vote. Widodo's Indonesian Democratic Party of Struggle finished
first in the DPR election, with 19.33% votes, followed by Prabowo's
Gerindra with 12.57% and Golkar Party with 12.31% votes.
 Recent developments and the
size of the industry
 August 2019
 The government revealed Borneo as the proposed site for the new
capital of the country. Indonesia was seeking to move its capital away
from the flood prone city of Jakarta, parts of which had permanently
sunk in water due to constant flooding. The new capital was estimated
to cost upwards of USD33 billion to build and an Indonesian unit of the
management consulting company McKinsey had been appointed to do
feasibility studies including exact funding needs and transportation
linkages with nearby cities.
 Recent developments and the
size of the industry

 Revenue in the Travel & Tourism market amounts to US$6,992m in

2019.
 Revenue is expected to show an annual growth rate (CAGR 2019-2023)
of 4.4%, resulting in a market volume of US$8,311m by 2023.
 The market's largest segment is Hotels with a market volume of
US$4,133m in 2019.
 In global comparison, most revenue is generated in the United States
(US$156,266m in 2019).
Recent developments and the
size of the industry
 Recent developments and the
size of the industry

 Although Indonesia’s travel industry was traditionally a brick and

mortar business, it is quickly being replaced by technology. A study by
Travelport reveals that 68% of Indonesian travelers use smartphones to
plan their trip, making them the third most digitally dependent traveler
nations in the world. According to Statista, the annual growth rate will
increase by 16.45% by 2020, with most bookings done for hotels,
package holidays, and accommodations.
 Recent developments and the
size of the industry

 Apart from the convenience that OTAs offer to its customers to book
flight tickets, hotels, and packages online, it also provides a
personalized experience to the customer that they perhaps may not
have experienced offline. OTA offers customized travel options based
on the customer’s demands and budget.

 As the OTAs grapple with the issue of creating micro-moments and

reducing churn, two of the foremost companies, Tiket.com and
Traveloka have successfully managed to combat this challenge with
their digital-first approach.
 Traveloka

 Traveloka: Traveloka, one of the first unicorns in Indonesia,

demonstrated a steady growth strategy right from the beginning. From
creating dedicated landing pages for each of their search results to
offering cheap air tickets and hotel discounts, Traveloka grew rapidly
within a few years. To personalize the experience, Traveloka relied on
email marketing campaigns to drive customers to make a purchase.
 Tiket.com

 Tiket.com: Tiket.com has become a household name due to its unique

digital marketing strategies. From making videos as the core of their
marketing campaign, to using smart audience targeting solutions to
target only those audience who were interested in traveling and being
with the customer at every stage of the customer’s purchase journey—
the digital-first approach of Tiket.com increased the purchase intent by
16.7% and improved the search interest and favorability by 28.5% and
18.8% respectively.
 Tiket.com

 Tiket.com: Tiket.com has become a household name due to its unique

digital marketing strategies. From making videos as the core of their
marketing campaign, to using smart audience targeting solutions to
target only those audience who were interested in traveling and being
with the customer at every stage of the customer’s purchase journey—
the digital-first approach of Tiket.com increased the purchase intent by
16.7% and improved the search interest and favorability by 28.5% and
18.8% respectively.