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 and via intermediary websites (OTA). Consumer Travel Fair (Offline and Online) is one of 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%
- 11 Active wholesalers have developed their own packages to promote Australia Jakarta: Avia Tour, Antavaya Tour, Bayu Buana Tour, Dwidaya Tour, Golden Rama Tour, Smailing Tour, Panorama Tour, Wita Tour. Surabaya: Celindo Tour, Monas Tour and Haryono Tour.
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
Aussie Specialists
- The Aussie Specialist Program (ASP) is the primary platform for Tourism Australia to train and develop ASP agent’s capability to sell Australia through our workshops, training, and familiarisation program.
- As of November 2021, there is 511 Active Qualified Aussie Specialist agents in Indonesia.
Online
- Anecdotally, a large percentage of Indonesian consumers use the the internet to search for information on holiday destinations (69% do trip research on mobile phones and others on laptop/Ipad). However, The top 2 booking channels are through Travel Agents & OTA, and 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.
- Recently, some of Top 10 travel agents in Jakarta and Airlines have increased their emphasis on internet bookings.
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. There are several ITOs which specialist in the servicing the Australian market. These include, Experience Tours Australia (ETA), Blue Travel Pty Ltd, Valentino Holidays Pty Ltd, Australia and Beyond Holidays Pty Ltd, and Tour East.
Trends
- Online Travel Agent (OTA) have grown their market share amongst Indonesian consumers and increased their international travel offerings and actively to provide best deal to various destination including Australia. Key OTAs include Traveloka and Tiket.com.
- Indonesian travellers 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.
- 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.
Planning and purchasing travel
- Indonesian travellers are typically a last-minute travellers, for FIT travellers, they do book 1 to 2 months in advance for low seasons. While in high seasons period, they will start to plan min 4 months in advance.
- Group Travellers will need minimum 2 to 3 months in advance to plan and book their travel. The majority 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 (May – July: Hari Raya Eid Al Fitr period and school holiday season, 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.
- 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'.
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 the Indonesia:
Jakarta:
Surabaya
