The sector is set to grow by 24% by 2024, driven by a 400% increase in spending by overseas travelers.
This post is part of the e-Conomy SEA 2024 blog series, bringing you key insights from Indonesia’s dynamic digital landscape. Indonesia’s online travel market is experiencing a strong resurgence, fueled by growing demand for both domestic and international tourism. After a challenging period during the pandemic, the sector has shown impressive signs of recovery, supported by the country’s diverse travel offerings and an increasing number of digital-savvy travelers.
In 2024, the Gross Merchandise Value (GMV) of Indonesia’s online travel sector is expected to reach nearly $9 billion (USD), growing 24% YoY. This significant development follows the revival of travel demand, as consumers become more confident and normalcy returns post-pandemic. Travelers are again interested in visiting various domestic and international destinations, making digital platforms play a crucial role in facilitating travel bookings and planning. With the increasing number of users of such platforms, Indonesia’s online travel market is expected to strengthen as one of the main drivers of digital economic growth.
Based on data from Visa on spending patterns by outbound travel spend in Indonesia has increased drastically by 400% since 2020, with many Indonesians traveling abroad. The main categories of outbound travel spending include product spending, which is 53%, followed by health (15%) and food (14%).
The e-Conomy SEA 2024 report, jointly prepared by Google, Temasek, and Bain & Company, highlights the importance of the online travel sector as a pillar of Indonesia’s digital economy revival. With consumer confidence recovering and the desire to explore increasing, the online travel industry is poised for sustained growth. Supported by the increasing number of Indonesians using digital tools to plan their trips, the sector is expected to play a significant role in shaping the future of Indonesian tourism.
Click to explore the e-Conomy SEA 2024 blog series.
