Hospitality Market in Indonesia by Service and Type of Tourists - Forecast and Analysis 2022-2026

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: 

• Service - Food service and accommodation
• Type of tourists - Domestic and international

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.

What will the Hospitality Market Size in Indonesia be During the Forecast Period?

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Hospitality Market in Indonesia: Key Drivers, Trends, and Challenges

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.

Parent Market Analysis

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.

Who are the Major Hospitality Market in Indonesia Vendors?

The report analyzes the market's competitive landscape and 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
• Xotels Ltd.

 

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.

Hospitality Market in Indonesia Value Chain Analysis

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:

• Inputs
• Inbound logistics
• Operations
• Services
• Marketing and sales
• Support activities
• Innovation

The report has further elucidated on other innovative approaches being followed by service providers to ensure a sustainable market presence.

What are the Revenue-generating Service Segments in the Hospitality Market in Indonesia?

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The hospitality market share growth in Indonesia by the food service segment will be significant during the forecast period. The rising preference for cheese, frozen foods, beef, fruits, pork, wine, and tree nut products by travelers are spurring the growth of the food service sector. The country also has a number of high-end hotels and restaurants that serve local and international cuisine, besides fast food outlets, cafés and bars, bakeries, and small low-end restaurants, street-side restaurants known as warungs, and vendors that sell food to customers on the street (street food). All these different types of food attract several domestic and international tourists, which is fueling the food service segment.

This report provides an accurate prediction of the contribution of all the segments to the growth of the hospitality market size in Indonesia and actionable market insights on post COVID-19 impact on each segment.

 

Hospitality Market Scope in Indonesia
Report Coverage	Details
Page number	120
Base year	2021
Forecast period	2022-2026
Growth momentum & CAGR	Accelerate at a CAGR of 12.03%
Market growth 2022-2026	$ 16.87 billion
Market structure	Fragmented
YoY growth (%)	6.09
Regional analysis	Indonesia
Competitive landscape	Leading companies, Competitive strategies, Consumer engagement scope
Key companies profiled	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.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Hospitality Market Report in Indonesia?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive hospitality market growth in Indonesia during the next five years
• Precise estimation of the hospitality market size in Indonesia and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the hospitality industry in Indonesia across Indonesia
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of hospitality market vendors in Indonesia

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