Distribution system

Whilst there are several channels available to Indonesian consumers for planning and booking travel, most consumers book through traditional retail travel agencies and via intermediary websites (OTA). The Consumer Travel Fair, a renowned B2B2C travel sales event (offline and online), is one of the preferred channels for Indonesian consumers researching the best deals, therefore, the Free and Independent Travel (FIT) segment is also growing in the Indonesian market.

Wholesalers/large agents

Commission level: 10% - 15%

• There are more than 1,000 travel agencies across Indonesia, a few larger travel agents/wholesalers such as Avia Tour, Antavaya Tour, Bayu Buana Tour, Dwidaya Tour, Golden Rama Tour, Smailing Tour, Panorama Tour, and Wita Tour in Jakarta As well as Celindo Tour, Monas Tour and Haryono Tour in Surabaya have developed their own packages to promote Australia. 
• These wholesalers handle both leisure and business events. The relationship between Australian wholesale operators and specialised travel agents is becoming closer, as online channels and the request for custom FITs are forcing operators to become more specialized and knowledgeable.
• The travel trade in Indonesia continues to operate under the traditional retail system, although the larger retail agents often take on the role of wholesalers. These retail agents market their own programs with links to inbound tour operators (ITOs), on-selling to smaller agencies.

Retail agents 

Commission level: 10% - 15%

• Most retail agencies handle both leisure and business events in a highly competitive market. However, there are a few agencies that solely concentrate on incentive business.
• Preferred relationships between retail and wholesale operators are focused on product and destination training, sales tools, shared technology, marketing support, networking and familiarisation opportunities.

Online

• Anecdotally, a large percentage of Indonesian consumers use the internet to search for information on holiday destinations (69% do trip research on mobile phones and others on laptop/iPad). However, the top booking channels are through travel agents, (in-person and online), and the Consumer Travel Fair.
• Likewise, the internet is primarily used by travel agencies as a source of information and communication, not for making bookings. Agents generally prefer to make reservations via traditional computer reservation systems, wholesalers and ITOs.
• Major retail agencies in Indonesia are ramping up their online presence including ensuring their website is e-commerce ready for direct bookings on accommodations, flight ticket, attraction entries, and experiences.
• Key online travel agency including Traveloka and Tiket.com.

Aussie Specialists

• The Aussie Specialist Program (ASP) is the primary platform for Tourism Australia to train and develop front line travel sellers to best sell Australia.
• There are over 700 qualified Aussie Specialists in Germany.

Inbound Tour Operators

Commission level: ITOs will usually offer a net rate to agents

• ITOs are still responsible for the vast majority of group holiday business into Australia, including incentive bookings from agents.
• Major players in the market are H2Oz Travel, PTC Express Travel, Xceptional Tours Australia, Dream Tours and Incentives Management, Blue Travel, Valentino Holidays, Australia & Beyond Holidays, and Australian Tours Management. 

Trends

• Indonesia’s High Yielding Traveller (HYT) is growing, with ​52 million young, inspirational and middle-class population with rising disposable income​.
• The total trip spend on leisure travel to Australia by Indonesians was AUD$579 million in 2023, growing by 129% compared to 2022, while the average trip spend was AUD$42,867, growing by 14% compared to 2022 (Source: IVS 2023).
  
• There is a shift towards the FIT segment, with many consumers still choosing to book flights through agents but making fewer bookings for accommodation prior to departure.
• 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 that are 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 in Indonesia and a developing market city for Australia. The market is more traditional than Jakarta with a preference for group tours.
• Online Travel Agencies (OTA) have grown their market share amongst Indonesian consumers. They have increased their international travel offerings and are actively providing the best deal to various destinations, including Australia.
• Indonesian travellers are increasingly booking tickets during consumer travel fairs to get good promotional fares and other benefits from the banks (cash rebate, double loyalty program points rewards, shopping voucher, and souvenirs). Travel agencies also give special offers and large discounts for hotels, tour series packages and FIT packages.

Planning and purchasing travel

• Indonesian travellers are typically last-minute travellers. FIT travellers tend to book one to two months in advance for low seasons. While in high seasons period, they will start to plan four months in advance at a minimum.
• Group travellers will need a minimum of two to three months in advance to plan and book their travel. The majority of group departures are during high seasons period (Hari Raya Eid Al Fitr period & Christmas and New Year Holiday)

Planning a visit to market

Top tips for sales calls

• Avoid sales calls in the peak seasons (April – June: Hari Raya Eid Al Fitr period and school holiday season, and Christmas holidays) and during consumer travel fairs (February – March, August – September). The best time for sales calls is January to early February and late July to early August.
• It is common to leverage events in market for pre or post sales calls, especially around the Australia Marketplace held in South East Asia region.  
• 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'.