Travel & Tourism - Indonesia

Indonesia

Indonesia's Travel & Tourism market is expected to generate a revenue of US$8,971.00m by 2024.
The market is projected to grow at an annual growth rate (CAGR 2024-2028) of 5.04%, resulting in a market volume of US$10,920.00m by 2028.
The largest market in this market is the Hotels, which is expected to reach a market volume of US$5,029.00m in 2024.
In the Hotels market, the projected number of users is 30.88m users by 2028.
The user penetration rate is expected to increase from 13.8% in 2024 to 15.0% by 2028.
The projected average revenue per user (ARPU) is US$232.00.
By 2028, 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$199bn 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

Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

Structure:

The market consists of five further markets.

The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
The Hotels market includes stays in hotels and professionally run guest houses.
The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

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Market

Region

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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.