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www.bricdata.com Emerging Opportunities and Growth Prospects in the Indonesian Travel Intermediaries Industry, Analyses and Forecasts to 2016 Industry Forecast Report Reference code: TT0017MR Published: May 2012 BRICdata John Carpenter House 7 Carmelite Street London EC4Y 0BS United Kingdom Tel: +44 (0) 20 7936 6400 Fax: +44 (0) 20 7336 6813 www.bricdata.com

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Page 1: Emerging Opportunities and Growth Prospects in …population and the rising number of inbound tourists. Indonesia has a favorable economic environment, making it an attractive destination

www.bricdata.com

Emerging Opportunities and

Growth Prospects in the

Indonesian Travel

Intermediaries Industry,

Analyses and Forecasts to 2016

Industry Forecast Report

Reference code: TT0017MR

Published: May 2012

BRICdata

John Carpenter House

7 Carmelite Street

London EC4Y 0BS

United Kingdom

Tel: +44 (0) 20 7936 6400

Fax: +44 (0) 20 7336 6813

www.bricdata.com

Page 2: Emerging Opportunities and Growth Prospects in …population and the rising number of inbound tourists. Indonesia has a favorable economic environment, making it an attractive destination

EXECUTIVE SUMMARY

Emerging Opportunities and Growth Prospects in the Indonesian Travel Intermediaries Industry Page 2

© BRICdata. This product is licensed and is not to be photocopied Published: May 2012

1 Executive Summary

Travel and tourism in Indonesia increased at a significant growth of X.X% rate during the review period (2007–2011) and

was supported by the country’s robust economic growth, which has facilitated the expansion of the middle-class

population and the rising number of inbound tourists. Indonesia has a favorable economic environment, making it an

attractive destination for international travel intermediaries to invest in. According to a survey, conducted by

huffingtonpost.com on January 12th

2012, the island of Bali was named one of the world’s nine most exotic honeymoon

locations. Some of the advantages of Indonesia as a destination for travel intermediaries are its large population and

potential customer base, its natural beauty, its prompt recovery from the global economic crisis and government policies to

encourage foreign direct investment (FDI).

Increasing volume of domestic and international tourism

The Indonesian travel intermediaries industry is expected to grow due to the growing number of tourism activities in the

country. Domestic tourism is expected to grow at a compound annual growth rate (CAGR) of X.XX% over the forecast

period (2012–2016), and primarily be driven by the country’s rising levels of disposable income coupled with government

incentives to modernize infrastructure. Indonesian inbound tourism is projected to grow at a CAGR of X.XX% over the

forecast period, which will be driven by promotional measures undertaken by the ministry of tourism. The Indonesian travel

intermediaries industry is expected to value IDRXXX.X trillion in 2016, registering a CAGR of X.XX% over the forecast

period.

Online travel intermediaries are changing the market dynamics

The value of Indonesian online travel agents (OTAs) grew at a CAGR of XX.XX% during the review period. Indonesia’s

OTAs are also projected to register significant growth over the forecast period, at a CAGR of X.XX%, to value IDRXX.X

trillion in 2016. The shift to purchasing travel products through the internet has been supported by the rapid development

of e-commerce in Indonesia.

Favorable government regulation will intensify competition

The Indonesian travel intermediaries industry will become increasingly competitive for both domestic and foreign

companies over the forecast period due to favorable government regulations. This will encourage more foreign companies

to provide travel services in Indonesia. In order to remain competitive, companies are developing expansion strategies

such as partnering with airline operators, hotels chains and car rental companies to provide attractive tour packages at

reduced prices.

Positive levels of business confidence and the increasing volume of business tourists will drive the market for

travel management solutions

The volume of business tourists in Indonesia is expected to grow significantly due to an increase in business activities and

high level of FDI. Consequently, there will be high demand from Indonesian corporations for new technology platforms and

travel management solutions to effectively monitor and control their traveling requirements. Both domestic and

international travel companies are offering automated tools that can streamline the overall travel management needs of

organizations. Antar Anda Tour & Travel, Panorama Sentrawisata and voltras.com are the leading travel management

companies offering travel management solutions, which can help organizations to optimize their overall booking and

reservation arrangements.

Growing internet penetration will drive the demand for online travel sites

With the increasing affordability of PCs, Indonesia is expected to have XX million internet users by the end of 2012. This

will create significant opportunities for the travel services market as the online travel site market is expected to grow at a

CAGR of X.XX% over the forecast period. The increasing demand for online travel sites will force offline travel agents and

tour operators to offer online capabilities to effectively compete.

Page 3: Emerging Opportunities and Growth Prospects in …population and the rising number of inbound tourists. Indonesia has a favorable economic environment, making it an attractive destination

TABLE OF CONTENTS

Emerging Opportunities and Growth Prospects in the Indonesian Travel Intermediaries Industry Page 3

© BRICdata. This product is licensed and is not to be photocopied Published: May 2012

TABLE OF CONTENTS

1 Executive Summary ............................................................................................................................ 2 2 Indonesia Travel Intermediaries Industry Market Environment ........................................................ 6

2.1 Macroeconomic Fundamentals .............................................................................................................. 6

2.2 Consumer Confidence ........................................................................................................................... 9

3 Market Size and Growth Potential of the Indonesian Travel Intermediaries Industry .................... 12

3.1 Travel Agents ...................................................................................................................................... 15

3.2 Tour Operators .................................................................................................................................... 20

3.3 Online Travel Sites .............................................................................................................................. 25

4 Key Demand Drivers for the Indonesian Travel Intermediaries Industry ........................................ 30

4.1 Overall Tourist Volume ........................................................................................................................ 32

4.2 Tourist Volume by Type of Tourist ....................................................................................................... 34

4.3 Spending Pattern of Domestic and International Tourists ..................................................................... 35

4.4 Total Internet Subscription ................................................................................................................... 37

5 Market Entry and Expansion Strategy for Indonesian Travel Intermediaries ................................. 38

5.1 Market Regulations ............................................................................................................................. 38

5.2 Market Entry Route ............................................................................................................................. 39

5.3 Expansion Strategy and Alliances ........................................................................................................ 40

6 Competitive Landscape of the Indonesian Travel Intermediaries Industry .................................... 41

6.1 Travel Agents Competitive Landscape ................................................................................................. 43

6.1.1 Antar Anda Indonesia .......................................................................................................................... 44

6.2 Tour Operators Competitive Landscape ............................................................................................... 45

6.2.1 Global Adventure Indonesia................................................................................................................. 46

6.2.2 Panorama Sentrawisata Tbk PT .......................................................................................................... 47

6.3 Online Travel Agent Competitive Landscape ....................................................................................... 49

6.3.1 Voltras.com ......................................................................................................................................... 49

7 Appendix............................................................................................................................................ 50

7.1 About BRICdata .................................................................................................................................. 50

7.2 Methodology ....................................................................................................................................... 51

7.3 Definitions ........................................................................................................................................... 52

7.4 Disclaimer ........................................................................................................................................... 53

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TABLE OF CONTENTS

Emerging Opportunities and Growth Prospects in the Indonesian Travel Intermediaries Industry Page 4

© BRICdata. This product is licensed and is not to be photocopied Published: May 2012

LIST OF FIGURES

Figure 1: Indonesian GDP Value at Constant Prices (US$ Billion), 2007–2016 (Base Year 2000) ................................................................... 6 Figure 2: Indonesian Inflation Rate (%), 2006–2016............................................................................................................................................ 7 Figure 3: Indonesian Annual Average Exchange Rate (US$–IDR), 2005–2011 ................................................................................................ 8 Figure 4: Indonesian Consumer Confidence Index, April 2011 – March 2012 ................................................................................................... 9 Figure 5: Indonesian Annual Disposable Income (US$ Billion), 2006–2016..................................................................................................... 10 Figure 6: Indonesian Unemployment Rate (%), 2006–2016 .............................................................................................................................. 11 Figure 7: Indonesia – Travel Intermediaries Market Size (IDR Billion), 2007–2011 ......................................................................................... 13 Figure 8: Indonesia – Travel Intermediaries Market Size (IDR Billion), 2012–2016 ......................................................................................... 14 Figure 9: Indonesia – Travel Agents Market Size (IDR Billion), 2007–2011 ..................................................................................................... 16 Figure 10: Indonesia – Travel Agents Market Size (IDR Billion), 2012–2016 ................................................................................................... 17 Figure 11: Indonesia – Travel Agents Market Size by Revenue Source (IDR Billion), 2007–2011 ................................................................. 18 Figure 12: Indonesia – Travel Agents Market Size by Revenue Source (IDR Billion), 2012–2016 ................................................................. 19 Figure 13: Indonesia – Tour Operators Market Size (IDR Billion), 2007–2011 ................................................................................................. 21 Figure 14: Indonesia – Tour Operators Market Size (IDR Billion), 2012–2016 ................................................................................................. 22 Figure 15: Indonesia – Tour Operators Market Size by Revenue Source (IDR Billion), 2007–2011 ............................................................... 23 Figure 16: Indonesia – Tour Operators Market Size by Revenue Source (IDR Billion), 2012–2016 ............................................................... 24 Figure 17: Indonesia – Online Travel Sites Total Market Size (IDR Billion), 2007–2011 ................................................................................. 26 Figure 18: Indonesia – Market Size of Online Travel Sites (IDR Billion), 2012–2016 ...................................................................................... 27 Figure 19: Indonesia – Online Travel Sites Market Size by Revenue Source (IDR Billion), 2007–2011 ......................................................... 28 Figure 20: Indonesia – Online Travel Sites Market Size by Revenue Source (IDR Billion), 2012–2016 ......................................................... 29 Figure 21: Indonesia – Travel Intermediaries Industry, Demand Drivers .......................................................................................................... 30 Figure 22: Indonesia – Total Tourist Volume (Million), 2007–2011 ................................................................................................................... 32 Figure 23: Indonesia – Total Tourist Volume (Million), 2012–2016 ................................................................................................................... 33 Figure 24: Indonesia – Tourist Volume by Type (in Million) Vs Travel Intermediaries Industry Size (IDR Billion), 2007–2016 ...................... 34 Figure 25: Indonesia – Total Spending Pattern of Domestic Tourists by Category (%), 2007–2016............................................................... 35 Figure 26: Indonesia – Total Spending Pattern of Inbound Tourists by Category (%), 2007–2016 ................................................................. 36 Figure 27: Indonesian Internet Subscriptions (Million), 2007–2016 .................................................................................................................. 37 Figure 28: Indonesia – Travel Intermediaries Industry Value by Market (IDR Billion), 2007–2016 ................................................................. 41 Figure 29: Indonesia – Performance Indicators of Online and Offline Travel Intermediaries (IDR Billion), 2007–2016 ................................. 42

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TABLE OF CONTENTS

Emerging Opportunities and Growth Prospects in the Indonesian Travel Intermediaries Industry Page 5

© BRICdata. This product is licensed and is not to be photocopied Published: May 2012

LIST OF TABLES

Table 1: Indonesian GDP Value at Constant Prices (US$ Billion), 2007–2016 (Base Year 2000) .................................................................... 6 Table 2: Indonesian Inflation Rate (%), 2006–2016 ............................................................................................................................................. 7 Table 3: Indonesian Annual Average Exchange Rate (US$–IDR), 2007–2011.................................................................................................. 8 Table 4: Indonesian Annual Disposable Income (US$ Billion), 2006–2016 ...................................................................................................... 10 Table 5: Indonesian Unemployment Rate (%), 2006–2016 ............................................................................................................................... 11 Table 6: Indonesia – Travel Intermediaries Total Market Size (IDR Billion), 2007–2011 ................................................................................. 13 Table 7: Indonesia – Travel Intermediaries Market Size (IDR Billion), 2012–2016 .......................................................................................... 14 Table 8: Indonesia – Travel Agents Market Size (IDR Billion), 2007–2011 ...................................................................................................... 16 Table 9: Indonesia – Travel Agents Market Size (IDR Billion), 2012–2016 ...................................................................................................... 17 Table 10: Indonesia – Travel Agents Market Size by Revenue Source (IDR Billion), 2007–2011................................................................... 18 Table 11: Indonesia – Travel Agents Market Size by Revenue Source (IDR Billion), 2012–2016................................................................... 19 Table 12: Indonesia – Tour Operators Market Size (IDR Billion), 2007–2011 .................................................................................................. 21 Table 13: Indonesia – Tour Operators Market Size (IDR Billion), 2012–2016 .................................................................................................. 22 Table 14: Indonesia – Tour Operators Market Size by Revenue Source (IDR Billion), 2007–2011 ................................................................ 23 Table 15: Indonesia – Tour Operators Market Size by Revenue Source (IDR Billion), 2012–2016 ................................................................ 24 Table 16: Indonesia – Online Travel Sites Market Size (IDR Billion), 2007–2011 ............................................................................................ 26 Table 17: Indonesia – Market Size of Online Travel Sites (IDR Billion), 2012–2016........................................................................................ 27 Table 18: Indonesia – Online Travel Sites Market Size by Revenue Source (IDR Billion), 2007–2011 .......................................................... 28 Table 19: Indonesia – Online Travel Sites Market Size by Revenue Source (IDR Billion), 2012–2016 .......................................................... 29 Table 20: Indonesia – Total Tourist Volume (Million), 2007–2011 .................................................................................................................... 32 Table 21: Indonesia – Total Tourist Volume (Million), 2012–2016 .................................................................................................................... 33 Table 22: Multinational Travel Intermediaries Operating in Indonesia .............................................................................................................. 39 Table 23: Antar Anda Indonesia, Key Facts ....................................................................................................................................................... 44 Table 24: Antar Anda Indonesia, Main Services ................................................................................................................................................ 44 Table 25: Global Adventure Indonesia, Key Facts ............................................................................................................................................. 46 Table 26: Global Adventure Indonesia, Main Services ...................................................................................................................................... 46 Table 27: Panorama Sentrawisata Tbk PT, Key Facts ...................................................................................................................................... 47 Table 28: Panorama Sentrawisata Tbk PT, Main Services ............................................................................................................................... 47 Table 29: Voltras.com, Key Facts ....................................................................................................................................................................... 49 Table 30: Voltras.com, Main Services ................................................................................................................................................................ 49 Table 31: Travel and Tourism Definitions ........................................................................................................................................................... 52

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INDONESIA TRAVEL INTERMEDIARIES INDUSTRY MARKET

ENVIRONMENT

Emerging Opportunities and Growth Prospects in the Indonesian Travel Intermediaries Industry Page 6

© BRICdata. This product is licensed and is not to be photocopied Published: May 2012

2 Indonesia Travel Intermediaries Industry Market Environment

2.1 Macroeconomic Fundamentals

There are considerable growth prospects for the Indonesian travel intermediaries industry over the forecast period due to

the country’s strong macroeconomic fundamentals, which will generate growth for both leisure and business tourism.

Indonesia is one of the fastest-growing emerging economies in the world. Such economic progress has been supported by

the expansion of the country’s manufacturing, service and agricultural sectors. According to the International Monetary

Fund (IMF), the country is projected to record a real GDP growth of X.X% in 2012 and X.X% in 2013.

The following sub-sections detail the macroeconomic trends using key indicators.

GDP at constant prices

Indonesia’s GDP at constant prices valued US$XXX.X billion in 2011, and achieved a CAGR of X.XX%

during the review period.

The country’s GDP is projected to increase at a CAGR of X.XX% over the forecast period, to reach

US$XXX.X billion by 2016.

The positive GDP growth will significantly increase the demand for travel intermediaries.

Table 1: Indonesian GDP Value at Constant Prices (US$ Billion), 2007–2016 (Base Year 2000)

2007 2008 2009 2010 2011

GDP XXX.X XXX.X XXX.X XXX.X XXX.X

2012 2013 2014 2015 2016

GDP XXX.X XXX.X XXX.X XXX.X XXX.X

Source: Central Bank of Indonesia and BRICdata analysis © BRICdata

Figure 1: Indonesian GDP Value at Constant Prices (US$ Billion), 2007–2016 (Base Year 2000)

Source: Central Bank of Indonesia and BRICdata analysis © BRICdata

0%

1%

2%

3%

4%

5%

6%

7%

8%

0

50

100

150

200

250

300

350

400

450

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

US

$ B

illio

n

Gross Domestic Product (US$ Billion) Growth Rate

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INDONESIA TRAVEL INTERMEDIARIES INDUSTRY MARKET

ENVIRONMENT

Emerging Opportunities and Growth Prospects in the Indonesian Travel Intermediaries Industry Page 7

© BRICdata. This product is licensed and is not to be photocopied Published: May 2012

2.2 Consumer Confidence

Consumer confidence details the buying behaviors of customers and is driven by a country’s level of disposable income

and rate of employment.

Indonesia consumer confidence index

The positive trend in consumer confidence is expected to increase the overall demand for travel intermediaries

and tour packages.

Figure 4: Indonesian Consumer Confidence Index, April 2011 – March 2012

Source: Central Bank of Indonesia and BRICdata analysis © BRICdata

106.9

105.3

109.0

111.8110.6

115.0116.2

114.3

116.6

119.2

111.7

107.3

Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12

Indonesian Consumer Confidence Index

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INDONESIA TRAVEL INTERMEDIARIES – MARKET ENTRY AND

EXPANSION STRATEGY

Emerging Opportunities and Growth Prospects in the Indonesian Travel Intermediaries Industry Page 8

© BRICdata. This product is licensed and is not to be photocopied Published: May 2012

3 Market Size and Growth Potential of the Indonesian Travel Intermediaries

Industry

Supported by strong levels of economic growth, Indonesia’s travel intermediaries industry increased from a value of

IDRXX.X trillion in 2007 to IDRXXX.X trillion in 2011, recording a CAGR of X.XX% during the review period. Revenues

declined in 2009 due to a decrease in tourist volumes due to the global financial crisis. However, the market rebounded in

2011 with a growth of X.X% due to a rise in tourist volume.

Of the total revenue generated by travel intermediaries in 2011, online travel sites accounted for the largest share of

XX.X% of the industry value, with revenues of IDRXX.X trillion. Travel agents accounted for the second-largest share of

XX.X% and generated revenues of IDRXX.X trillion. Online travel sites registered the largest CAGR of XX.XX% during the

review period, while tour operators registered the lowest CAGR of X.XX%. Tour operator revenues valued IDRXX.X trillion

in 2011, and accounted for the lowest share of XX.X%.

Table 6: Indonesia – Travel Intermediaries Total Market Size (IDR Billion), 2007–2011

Travel Intermediaries 2007 2008 2009 2010 2011 CAGR 2007–2011

Online travel sites XX,XXX.X XX,XXX.X XX,XXX.X XX,XXX.X XX,XXX.X XX.XX%

Travel agents XX,XXX.X XX,XXX.X XX,XXX.X XX,XXX.X XX,XXX.X X.XX%

Tour operator XX,XXX.X XX,XXX.X XX,XXX.X XX,XXX.X XX,XXX.X X.XX%

Total XX,XXX.X XXX,XXX.X XXX,XXX.X XXX,XXX.X XXX,XXX.X X.XX%

Source: BRICdata analysis © BRICdata

Figure 7: Indonesia – Travel Intermediaries Market Size (IDR Billion), 2007–2011

Source: BRICdata analysis © BRICdata

2007 2008 2009 2010 2011

IDR

Billio

n

Online travel sites Travel Agents Tour Operator

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INDONESIA TRAVEL INTERMEDIARIES – MARKET ENTRY AND

EXPANSION STRATEGY

Emerging Opportunities and Growth Prospects in the Indonesian Travel Intermediaries Industry Page 9

© BRICdata. This product is licensed and is not to be photocopied Published: May 2012

4 Key Demand Drivers for the Indonesian Travel Intermediaries Industry

The demand for travel intermediaries in Indonesia is primarily driven by four key components: the overall tourist volume,

leisure and business tourists, the spending pattern of domestic and inbound tourist and internet penetration levels.

The demand for tour operators and travel agents is primarily influenced by the volume of overall, business and leisure

tourist and their expenditure. The following section details each of the key demand drivers in detail.

Figure 21: Indonesia – Travel Intermediaries Industry, Demand Drivers

Source: BRICdata analysis © BRICdata

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INDONESIA TRAVEL INTERMEDIARIES – MARKET ENTRY AND

EXPANSION STRATEGY

Emerging Opportunities and Growth Prospects in the Indonesian Travel Intermediaries Industry Page 10

© BRICdata. This product is licensed and is not to be photocopied Published: May 2012

4.1 Overall Tourist Volume

The total number of tourists in Indonesia increased from XXX.X million in 2007 to XXX.X million in 2011, after growing at a

CAGR of X.XX% during the review period. The highest CAGR of X.X% and was recorded in 2010 and can be attributed to

an increase in Indonesian consumer confidence due to the country’s strong economic recovery following the global

financial crisis.

Table 20: Indonesia – Total Tourist Volume (Million), 2007–2011

Type of Tourist 2007 2008 2009 2010 2011 CAGR 2007–2011

Domestic XXX.X XXX.X XXX.X XXX.X XXX.X X.XX%

Inbound X.X X.X X.X X.X X.X X.XX%

Outbound X.X X.X X.X X.X X.X X.XX%

Overall XXX.X XXX.X XXX.X XXX.X XXX.X X.XX%

Source: BRICdata analysis © BRICdata

Figure 22: Indonesia – Total Tourist Volume (Million), 2007–2011

Source: BRICdata analysis © BRICdata

2007 2008 2009 2010 2011

To

uri

sts

vo

lum

e in

Millio

n

Domestic Inbound Outbound

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COMPETITIVE LANDSCAPE OF THE INDONESIAN TRAVEL

INTERMEDIARIES INDUSTRY

Emerging Opportunities and Growth Prospects in the Indonesian Travel Intermediaries Industry Page 11

© BRICdata. This product is licensed and is not to be photocopied Published: May 2012

5 Competitive Landscape of the Indonesian Travel Intermediaries Industry

During the review period Indonesia’s travel intermediaries industry registered a remarkable shift with an ever increasing

number of customers preferring to use online travel agents rather than traditional travel and tour operators. The

Indonesian online travel market grew at an impressive CAGR of XX.XX% during the review period, to value IDRXX.X

trillion in 2011. The travel agents market registered a CAGR of X.XX% during the review period and the tour operator

market recorded a CAGR of X.XX%. The shift to using online travel sites is primarily driven by the country’s rapidly

developing e-commerce sector, a growing number of internet subscribers and the adoption of technology. Over the

forecast period the online travel market value is expected to increase at a CAGR of X.XX%, while the travel agent market

is projected to register at a CAGR of X.XX% and the tour operator market will record a CAGR of X.XX%.

Figure 28: Indonesia – Travel Intermediaries Industry Value by Market (IDR Billion), 2007–2016

Source: BRICdata analysis © BRICdata

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

IDR

Billio

n

Online travel sites Travel Agents Tour Operator

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APPENDIX

Emerging Opportunities and Growth Prospects in the Indonesian Travel Intermediaries Industry Page 12

© BRICdata. This product is licensed and is not to be photocopied Published: May 2012

6 Appendix

6.1 About BRICdata

BRICdata publishes in-depth strategic intelligence reports that help its customers better understand opportunities in

emerging markets and industry sectors. Its reports provide an independent, expert view supported by primary research

and access to leading data and intelligence sources.

BRICdata is a comprehensive source of insights and analysis, and publishes a broad range of reports across a number of

different industry sectors, including consumer, retail, financial services, technology, telecoms and construction.

BRICdata is headquartered in London with research, analysis and account management teams based across Europe, the

US and Asia-Pacific. Its global research footprint is supported by a network of external associates, data partners and

industry experts to give the clearest possible perspective on emerging markets.

Areas of expertise

BRICdata operates a dedicated, multilingual team of in-house industry analysts with significant experience of global and

country-level research. BRICdata also maintains data and research partnerships with other research companies, industry

experts and trade associations, along with a network of independent industry consultants and former industry participants

contributing research and reports to bring additional insight and expertise in more specialist areas.

BRICdata’s research offering spans the following industry areas:

Construction

BRICdata publishes reports covering the entire construction value chain: construction materials, equipment, construction

services, architectural services and interior design. It also covers the main value sectors of construction activity:

commercial, infrastructure, industrial, institutional and residential.

This comprehensive view of the market enables BRICdata to detail key growth sectors and countries and identify the most

attractive industry opportunities.

Consumer

Covering a broad range of areas across the consumer goods marketplace, from interior products to FMCG, ingredients,

and packaging, BRICdata offers a comprehensive insight into key consumer sectors across fast-growing markets,

identifying key trends, future innovations and growth opportunities.

Comprehensive data sets including unique primary survey-driven research creates accurate market forecasts and

understanding of the factors driving consumption behavior.

Financial Services

Providing detailed insights into insurance and banking markets, BRICdata’s financial services reports identify key market

opportunities, emerging technologies and channel strategies. The reports provide unique data combined with local

examples of best practice and expert insights into the market.

Retail

BRICdata maintains a comprehensive database of forecasts of retail spending, along with a series of unique indicators

enabling a forward view of retailers’ prospects in emerging markets. The reports identify emerging concepts in retail,

including the nascent online and mobile retail sectors in the BRIC countries and other emerging markets.

Technology

BRICdata tracks key trends and innovations, emerging technologies and markets, and the key operators in both emerging

markets and technologies. Covering a range of emerging and disruptive technologies including telecoms, social media,

online and mobile retailing, and telemedicine, BRICdata examines strategies for success, the state of the competitive

landscape and the inherent threats and opportunities in the emerging technological economy.

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APPENDIX

Emerging Opportunities and Growth Prospects in the Indonesian Travel Intermediaries Industry Page 13

© BRICdata. This product is licensed and is not to be photocopied Published: May 2012

6.2 Methodology

All reports are rigorously sourced and created according to a comprehensive, two-stage methodology. This includes

internal audit and primary research.

A) Internal audit

Review of in-house databases to gather existing data:

o Historic market databases and reports

o Company database

o projects database

B) Primary research

Review of the latest company strategy and asset management trends

1) Research

A. Sources

Collection of the latest market-specific data from a wide variety of industry sources:

o Government statistics

o Industry associations

o Company filings

o Broker reports

o International organizations

B. Expert opinion

Collation of opinion taken from leading industry experts

Analysis of third-party opinion and forecasts:

o Broker reports

o Industry associations

o Official government sources

C. Data consolidation and verification

Consolidation of data and opinion to create historical datasets

Creation of models to benchmark data across sectors and geographies

2) Research Analysis

Market forecasts

Feed of forecast data into market models:

o Macroeconomic indicators

o Industry-specific drivers

Analysis of Market Databases to identify trends by sector:

o Latest trends

o Key drivers of the market

3) Report Writing

Analysis of market data

Discussion of company and industry trends and issues

Integration of survey results

Annual review of trends

Standardization of market definitions using recognized industry classifications

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APPENDIX

Emerging Opportunities and Growth Prospects in the Indonesian Travel Intermediaries Industry Page 14

© BRICdata. This product is licensed and is not to be photocopied Published: May 2012

4) Quality Control

A. Templates

Detailed process manuals

Standardized report templates and accompanying style guides

Complex forecasting tool used to ensure forecast methodologies are consistently applied

QC checklists

B. QC process

Peer review

Senior-level QC

Random spot checks on data integrity

Benchmark checks across databases

Market data cross-checked for consistency with accumulated data from company filings

6.3 Definitions

Table 31: Travel and Tourism Definitions

Terms Definition

Inbound tourist A tourist traveling to a different country from their country of residence. For instance, if a person

living in Canada travels to France, they would be an inbound tourist to France.

Outbound tourist A tourist visiting places outside of their country of residence. For instance, a person who lives in

France would be going outbound when they visit any place outside France.

Domestic tourists A tourist who spends time away from home, but within the country in which they live. For instance, a

person living in France traveling to different places within France.

Leisure tourist A tourist traveling for recreational purposes such as visiting friends or relatives, holiday or

entertainment. Generally, leisure trips are longer than business trips.

Business tourist A person traveling on business-related activities such as meetings, conferences and trade shows.

Generally, business tourists' expenses are paid by the organization they work for.

Health and wellness tourist

A person traveling within or outside the country to improve their health or wellbeing. Services sought

typically include elective procedures or complex specialized procedures such as cosmetic, dental,

cardiac and joint or knee replacement surgeries.

Spending pattern The total spending by a visitor on travel, lodging, food and beverages, sightseeing, entertainment,

shopping, health and wellness, and travel insurance during their visit.

Spending on travel and

transportation

Includes tourist spending on travel by air, road, rail or sea, such as flight or train tickets, and car

rentals.

Spending on lodging Tourist spending on accommodation, such as hotels, during their stay.

Travel insurance Insurance which covers travel-related losses such as delays, medical expenses, loss of personal

belongings and personal liability.

Travel agents

A business which sells travel-related products and services to both leisure and business customers

on behalf of suppliers. Products and services typically include package holidays, sightseeing tours,

airlines, hotels, cruise lines, car rentals, railways and travel insurance companies. Some travel

agents also serve as sales agents for international travel companies.

Tour operators

Businesses that combine two or more travel services, such as transport, sightseeing,

accommodation, food and entertainment, and sell them either directly to customers or through travel

agents as a single product, called a package tour, for one price.

Online travel sites

These sites provide online travel bookings, travel deals, hotel guides and related services. They

also offer holiday and tour packages with complete travel arrangements such as air/train/bus ticket

booking, hotel accommodation, car rental and other travel-related services.

Source: BRICdata analysis © BRICdata

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APPENDIX

Emerging Opportunities and Growth Prospects in the Indonesian Travel Intermediaries Industry Page 15

© BRICdata. This product is licensed and is not to be photocopied Published: May 2012

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