Working in Market:
Indonesia
DISTRIBUTION SYSTEM
Whilst there are a number of channels available to Indonesian consumers for planning and booking travel, most consumers book through traditional retail travel agencies. The internet is primarily used as a research tool, with many Indonesian travelers not yet comfortable with booking online. The Free and Independent Travel (FIT) segment is also growing in the Indonesian market.
Trends
Planning and purchasing travel |
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> Most consumers book through traditional retail travel agencies. The internet is primarily used as a research tool, while consumer generally purchase through travel agents, as they seek assurance that someone will take responsibility for their purchase should there be any issues. > Indonesian are increasingly booking tickets during consumer travel fairs to get good promotional fares and other benefits from the banks (cash back, double points rewards, Shopping voucher, Souvenirs). Travel agencies also give special offers and large discounts for Hotels, Tour series packages and FIT packages. > There is a shift towards Free Independent and Travel (FIT), with many consumers still choosing to book flights through agents, but making fewer bookings for accommodation prior to departure. > Groups tend to travel during peak season when the major holidays such as school holiday, Lebaran and Christmas occur. The lead time is three to four weeks prior to the peak season. FITs travel more during the off peak months and have a shorter lead time than group travelers. > There are two consumer segments in Indonesia. One segment is price driven and more inclined to switch travel agents to get a better deal. The other consists of affluent consumers who stay loyal to travel agencies who provide a customised service. > Jakarta is the main source market for Australia. The city has the highest concentration of people able to afford travel, as well as the best connectivity with both non-stop services and direct services to Australia. > Surabaya is the second largest city to developing market for Australia. The market is more traditional than Jakarta with a preference for group tours.
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PLANNING A VISIT TO MARKET
TOP TIPS FOR SALES CALLS
> Avoid sales calls in the peak seasons (June – July school holiday season, Lebaran and Christmas holidays) and during consumer travel fairs (March – April, September – November). The best time for sales calls is January to early March and late July to early September.
> Trust and relationship management is important in the Indonesian market as it helps to build loyalty.
> The key market for sales calls is Jakarta. Due to heavy traffic conditions, plan a realistic program.
> Plan and combine visits that are in the same geographical area so you can maximize the number of sales calls and minimize commuting times.
> For more general information on sales calls and planning a visit to market, please see Tourism Australia’s 'Tourism Export Toolkit'.
Key Distribution Partners
Tourism Australia is a partnership marketing organisation and works closely with airlines and travel companies on cooperative marketing to drive conversion in all priority markets.
These targeted travel companies, including wholesalers, retail and online travel agencies, form Tourism Australia’s Key Distribution Partner (KDP) program with the intention to increase total booking value of visitors to Australia.
Each KDP is selected based on the fit with Tourism Australia’s market strategy, a shared target customer profile, shared funding of marketing activity, a commitment to training their frontline sales team through the Aussie Specialist Program and a commitment to selling quality Australian product and experiences.
Below are a selection of Key Distribution Partners that Tourism Australia is partnering with from Indonesia for the 2017/2018 financial year.
- Australia Centre
- Avia Tour
- Celindo Tour Surabaya
- Dwidaya Tour
- Golden Rama Express
- Haryono Travel
- Monas Tour Surabaya
- Panen Tour
- Smailing Tour
- Wita Tour
- YUK Travel
CANADA
CANADA
CANADA
CANADA
CANADA
WHERE TO FIND MORE INFORMATION
Tourism Australia’s activities in Indonesia are managed from its Singapore office. For more information visit Tourism Australia’s corporate website at www.tourism.australia.com.
Australian State and Territory Tourism Organisations operating in Indonesia include: Tourism & Events Queensland and Tourism Western Australia.
Also see:
- An overview on the travel distribution system
- A quick reference on key booking and travel periods for markets
- Indonesia Country Brief published by the Department of Foreign Affairs and Trade at www.dfat.gov.au/geo
- For additional statistical reports refer to the ABS and TRA websites, www.abs.gov.au and www.tra.gov.au