While the economic downturn has affected Indonesian consumer purchasing power, outbound travel continues to thrive, with demand shifting rather than declining.
According to industry experts interviewed by TTG Asia, travellers are adjusting their spending habits by seeking out better deals, choosing destinations more carefully, and prioritising value over extra luxuries.
Pauline Suharno, president of The Indonesian Travel Agents Association (ASTINDO), stated that flexibility was key to sustaining demand.
“People aren’t giving up on travel; they’re simply being more mindful of their choices. As long as the industry offers a variety of options that suit different budgets, demand will persist,” she said.
To support this trend, ASTINDO broadened its offerings at their ASTINDO Travel Fair 2025, held at ICE BSD in February. The event showcased a diverse selection of travel packages, from budget-friendly group tours to premium luxury getaways, ensuring accessibility for all market segments.
A key factor sustaining travel demand is the rise of new competitively priced destinations, driven by increased flight availability and aggressive tourism campaigns, such as those in China and Vietnam.
TX Travel owner Anton Tedhy shared an example: “With a budget of less than US$650, travellers can enjoy a week-long trip to China, with new and exciting destinations continuously being introduced.”
As for Vietnam, the destination is experiencing a surge in demand, particularly among social media-driven travellers.
“Many Indonesian tourists are drawn to Vietnam after seeing it on their feeds. It’s affordable, visually stunning, and perfect for short getaways,” Teddy added.
While mid-to-lower segments are adjusting their spending, Agustinus Pake Seko, president director of Bayu Buana Travel Services, highlighted that affluent travellers continue to prioritise exclusivity and experience, even as they explore new destinations.
“Northern Europe has become a standout choice, with demand rising by 30 to 35 per cent this year,” he said, adding that Russia is also gaining interest among Indonesia’s premium travellers.
Hellen Xu, CEO of Panorama JTB Tours Indonesia, observed that demand remains steady across all travel segments. To cater to evolving consumer preferences, Panorama introduced “super deal” packages for Europe and Turkey during Ramadan, priced 50 per cent lower than those offered for Hari Raya holiday departures.
“Seeing positive sales volume up to March, we remain optimistic about achieving up to 30 per cent growth this year compared to 2024,” she added.
