Indonesia’s MG Bedbank is spreading its wings in South-east Asia by opening offices in Singapore, Kuala Lumpur, Bangkok, Manila and Vietnam this year.
Raymond Djani, founder of MG Holiday Group, said: “We have been successful in establishing our Indonesia domestic bedbank and now we need to expand.
“Globalisation has allowed international players to (set up) business here in Indonesia. If we do not (step up to the) next level and become a player on the regional level, we will be left behind.”
According to Djani, the company started penetrating these markets in late 2016 by appointing representatives, and business has picked since.
“Indonesia is the second biggest market for Singapore after China, and Orchard Road is a popular stretch where Indonesians like to stay. This gives us a competitive edge to grab the market.”
In newer markets like the Philippines, MG Bedbank saw a higher growth rate than in Singapore and Malaysia, although the market is still small in terms of volume.
“The market opportunity is huge. We are not only talking about Indonesians buying hotels overseas with us, but also regional or international travel companies buying international products.
“Although we are an online company, having physical presence in the market is important to build trust with the business partners,” Djani added.
He shared that the representatives in these offices are currently focussing on contacting with hotels, but would soon recruit sales and marketing staff to work with travel companies in each country.
As part of activities to promote regional hotels, MG Bedbank recently organised its first table top session in Jakarta that brought hotels in South-east Asia and Hong Kong together with outbound travel companies in Indonesia.
“We are planning to organise similar events once a year to allow travel companies and suppliers to communicate and get updates on each other,” Raymond said.