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According to Technavio's analyst, the hospitality market share in Indonesia is expected to be valued at USD 16.87 billion by 2026 with a progressing CAGR of 12.03%.
The hospitality market in Indonesia has been broadly categorized into the following demographic segmentations:
This hospitality market in Indonesia research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. The hospitality market report in Indonesia offers information on several market vendors, including Archipelago International, OSO GROUP, PT Garuda Indonesia (Persero) Tbk., PT Kakaban Tour and Travel Services, PT PEGADAIAN, PT Pertamina Patra Niaga, PT Singarajaputra Tbk, PT. Golden Rama Express, SAHID HOTELS and RESORTS, and Xotels Ltd. among others.
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The shifting preference for local and authentic experiences is notably driving the hospitality market growth in Indonesia, although factors such as difficulties in implementing tourism policies may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the hospitality industry in Indonesia. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Hospitality Market Driver in Indonesia
One of the key factors driving growth in the Indonesia hospitality market is the shifting preference for local and authentic experiences. Some tourists are focusing more on exploring local communities and their cultures, which are considered to be one of the most important aspects of the hospitality market in Indonesia. These tourists prefer buying local products instead of souvenirs; undertaking adventure trips in public transport instead of taxis; and having dinner in a restaurant that uses zero-kilometer ingredients, including local, low-impact primary ingredients, such as meat, cheese, and honey. This new form of tourism is expected to become popular among tourists as they are becoming more aware of the environmental impact of tourism. This will fuel the growth of the market in focus during the forecast period.
Key Hospitality Market Trend in Indonesia
One of the key Indonesia hospitality market trends fueling the market growth is the increase in internet access and online testimonials. Technological advances with respect to Internet access and smartphones have disrupted the overall travel and tourism industry, which is expected to optimize the entire traveling process by making it more convenient for travelers to plan their vacations or trips. The Internet provides consumers with all the essential information related to travel besides customer-generated reviews through testimonials. These facilities enable travelers to plan their vacations in advance using the information available on the Internet. The Internet provides direct access to destination images and videos, reviews, weather reports, and maps and guides. Online testimonials are expected to garner more attention as they help travelers plan their visits and related itinerary. This is expected to have a positive impact on the Indonesia hospitality market during the forecast period.
Key Hospitality Market Challenge in Indonesia
The difficulties in implementing tourism policies will be a major challenge for the Indonesia hospitality market during the forecast period. The implementation of sustainable and effective policies, including those that promote the conservation of natural resources, safeguard local/national economic interests and encourage local heritage tours, faces difficulties when governments change or national budgets come under pressure. For instance, the government of Indonesia has established the National Master Plan, which was agreed upon in 2010 and runs until 2025. The implementation of this plan is mainly aimed at providing a sustainable tourism destination, which stimulates widespread regional development and improves the welfare of all Indonesians. However, there are several challenges that hamper the National master plan in the country, such as the lack of a well-trained workforce for the tourism sector; marketing issues which include the promotional activity for implementing an effective tourism industry in the country. These factors are expected to pose a threat to the growth of the Indonesia hospitality market.
This hospitality market in Indonesia analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
Technavio categorizes the hospitality market in Indonesia as a part of the global hotels, restaurants, and leisure market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the hospitality market in Indonesia during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the hospitality market in Indonesia encompasses successful business strategies deployed by the key vendors. The hospitality market in Indonesia is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The hospitality market in Indonesia forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the hospitality market in Indonesia, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chains is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
The value chain of the hotels, restaurants, and leisure market includes the following core components:
The report has further elucidated on other innovative approaches being followed by service providers to ensure a sustainable market presence.
Executive Summary
Market Landscape
Market Sizing
Five Forces Analysis
Market Segmentation by Service
Market Segmentation by Type of tourists
Vendor Landscape
Vendor Analysis
Appendix
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