Travel & Tourism - Indonesia

  • Indonesia
  • Indonesia's Travel & Tourism market is expected to generate a revenue of US$8,324.00m by 2024.
  • The market is projected to grow at an annual growth rate (CAGR 2024-2029) of 7.79%, resulting in a market volume of US$12,110.00m by 2029.
  • The largest market in this market is the Hotels, which is expected to reach a market volume of US$4,634.00m in 2024.
  • In the Hotels market, the projected number of users is 48.18m users by 2029.
  • The user penetration rate is expected to increase from 13.2% in 2024 to 19.5% by 2029.
  • The projected average revenue per user (ARPU) is US$225.50.
  • By 2029, 77% of the total revenue in the Travel & Tourism market is expected to be generated through online sales.
  • In comparison to other countries, United States is expected to generate the highest revenue in the Travel & Tourism market, with a projected revenue of US$214bn in 2024.
  • Indonesia's Travel & Tourism sector is experiencing a rise in domestic tourism, driven by the growing middle class and improved infrastructure.

Key regions: Malaysia, Europe, Singapore, Vietnam, United States

 
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Analyst Opinion

Indonesia's Travel & Tourism market is experiencing significant growth and development.

Customer preferences:
Travelers in Indonesia are increasingly seeking unique and authentic experiences, driving the demand for off-the-beaten-path destinations and cultural immersion. Additionally, there is a growing interest in sustainable and eco-friendly tourism practices among Indonesian tourists.

Trends in the market:
One notable trend in Indonesia's Travel & Tourism market is the rise of digital platforms and online travel agencies, making it easier for travelers to book accommodations, activities, and transportation. The market is also witnessing a surge in domestic tourism, with more Indonesians exploring their own country due to increased disposable income and improved infrastructure.

Local special circumstances:
Indonesia's vast archipelago offers diverse landscapes, cultures, and attractions, making it a popular destination for both domestic and international tourists. The country's rich cultural heritage, stunning natural beauty, and warm hospitality contribute to its appeal as a top travel destination in Southeast Asia.

Underlying macroeconomic factors:
The growth of Indonesia's Travel & Tourism market can be attributed to several macroeconomic factors, including a rising middle class with higher purchasing power, government initiatives to promote tourism, and investments in infrastructure development. Additionally, the country's strategic location in the Asia-Pacific region and its visa policies have made it more accessible to travelers from around the world.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels, vacation rentals, cruises, package holidays, and camping.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.

Overview

  • Revenue
  • Sales Channels
  • Analyst Opinion
  • Users
  • Travel Behavior
  • Destination Shares
  • User Demographics
  • Global Comparison
  • Methodology
  • Key Market Indicators
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