Harnessing the Momentum of Tourism Industry Revival

The Indonesian government officially lifted the COVID-19 pandemic status two years ago. Since then, societal behaviors have shifted significantly, particularly in how people approach travel and leisure. According to data from the Central Statistics Agency (BPS), international tourist arrivals in the first quarter of 2023 reached a cumulative 2.5 million, marking an impressive 508.87% increase compared to the same period in 2022.

This surge in tourism presents a tremendous economic opportunity for Indonesia. However, not all industry players have effectively adapted to the nuances of the post-pandemic era. Recognizing this, MarkPlus was surveyed in early 2023 to explore the evolving behaviors of domestic travelers and identify emerging trends since the pandemic status was lifted.

Paint Points

Understanding the challenges faced by potential consumers is essential for creating meaningful differentiation and meeting their needs. As shown in Figure 1, weather emerged as the most significant concern among travelers. Unfavorable weather conditions often disrupt travel plans, leading to irregular seasonal travel patterns. Travelers now prefer to book trips when confident of favorable weather at their destinations.

Figure 1 Consumer Pain Points in Travelling

In the post-pandemic era, several new concerns have emerged as critical “pain points,” including safety, facility cleanliness, and travel insurance. These factors are expected to become the latest hygiene standards in the tourism industry. Another key insight is that 46% of travelers reported exceeding their budgets during trips. Beyond offering discounts, industry players can address this by personalizing travel packages that align with consumers’ financial capacities, ensuring affordability without compromising the experience.

Preferred Type of Holiday

During the pandemic, trends like staycations and workations reshaped how Indonesians approached travel. These shifts have carried over into the post-pandemic era, influencing consumer preferences for travel models. As illustrated in Figure 2, there is a growing preference for destinations where all attractions are consolidated in one location. Travelers increasingly avoid itineraries requiring frequent mobility during their trips.

Figure 2 Preference Levels for Holiday Types

This trend poses both challenges and opportunities for destination managers. Multi-city or multi-country travel packages are becoming less attractive, underscoring the need for destinations to offer comprehensive, all-in-one experiences. Developing such integrated tourism hubs will be crucial for meeting the demands of modern travelers while fostering sustainable growth in the industry.