Indonesian online travel unicorn Traveloka makes 'significant impact'

A study from PwC has highlighted the contributions Jakarta-based travel company Traveloka has made in the tourism sector as well as in other areas such as agriculture and energy.

The study examines Traveloka’s contribution to Indonesia’s economy over a four-year period, from 2019 to 2022, during which the travel platform played what is described as “a crucial role” in boosting Indonesia’s gross value added by approximately $10 billion.

Out of this total, the tourism sector alone accounted for over $4.5 billion, making up 2.7% of the sector’s GDP. This contribution played a vital role in the post-lockdown recovery of the travel and tourism industry in the region.

“Our assesses the far-reaching impact of Traveloka’s operations on various sectors in the Southeast Asia region. It is heartening to see a tech unicorn not only succeed but also drive positive change in Southeast Asia,” said Julian Smith, director at PwC in Indonesia.

Traveloka is an online travel platform that offers a one-stop solution for users to book flights, hotels, and activities. The Jakarta-headquartered platform provides a user-friendly interface and diverse options, which helped in its successfully becoming the largest travel app in Southeast Asia.

PwC also emphasizes how the Indonesian travel firm has enabled its local partners to expand into global markets and diversify their revenue streams through innovation. An impressive 86% of the businesses surveyed by the consulting firm noted that partnering with Traveloka accelerated their growth, especially in sectors like travel and tourism, food and beverages, and lifestyle.

Businesses experienced substantial increases in sales following their partnerships with the Indonesian tech unicorn, with an average growth ranging from 50% to 75%.

Furthermore, 67% of businesses located in less-traveled destinations reported increased visits after partnering with Traveloka, with 77% acknowledging its role in promoting domestic tourism. A notable 62% believed that Traveloka had improved their competitiveness compared to businesses in other locations.

Among women-owned businesses, a remarkable 85% credited the travel company with assisting them in promoting their products, reaching a broader customer base, and achieving higher online sales revenue.

Caesar Indra, President of Traveloka, emphasized the company's dedication to serving its customers and creating a positive and sustainable impact on Indonesia’s economy as it continues to expand its presence both regionally and globally.

With air travel exploding back from Covid-19 pandemic lows, previously lesser-visited countries in Asia are keen on boosting their tourism appeal. Ingenious online campaigns is proving an increasingly effective way for these countries to punch above their weight in terms of size and budget.