Online Tourism Booking Value Grows, Traveloka and Tiket.com Hold Largest Market Share
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Research compiled by East Ventures, Katadata Insight Center (KIC), and PricewaterhouseCoopers (PwC) Indonesia, using Euromonitor data, shows growth in Indonesian tourism through digital bookings or online booking.
In 2017, the value of online bookings reached Rp99 trillion. However, after the COVID-19 pandemic hit Indonesia in 2020, this value plummeted to Rp52 trillion.
The tourism sector, one of the hardest hit during the pandemic, faced a challenging recovery. In 2022, the value of online bookings is estimated at Rp52 trillion.
However, the team anticipates a much brighter future for the sector, projecting a value of Rp128 trillion in 2023 and Rp202 trillion in 2027. Growth from 2017 to 2027 is estimated at 7%.
(See also: Transportation and Accommodation are the Biggest Supporters of Tourism)
Online booking is dominated by agencies or online travel agencies (OTAs) such as Traveloka and Tiket.com, which together control a significant market share of 72%.
"As a business strategy, Traveloka is developing a lifestyle app that offers various services beyond tourism, such as electricity payments and gold investments," the team wrote in their report.
In contrast, Tiket.com is collaborating with Blibli across platforms.
The team explains that the OTA market share is already concentrated among a few players, so opportunities for tourism technology development lie in areas beyond accommodation and transportation bookings.
"For example, room service via a mobile app developed by Izy.ai or the customer relationship management (CRM) platform for hotels and restaurants from Member.id," the research team wrote.
In 2017, the online booking market share reached Rp99 trillion. Traveloka contributed 38%, Tiket.com 10%, and other OTAs 52%.
The 2022 estimate is Rp97 trillion, with Traveloka contributing 51%, Tiket.com 21%, and other OTAs 28%.
(See also: Digital Wallets are the Most Widely Used Payment Method in Digital Applications)
"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."
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