Hotel, Travel Agent Business Suffer Loss due to Airfare Hike

TEMPO.CO, Jakarta - The surge of airfare for domestic flights since the end of 2018 is inflicting the tourism industry. The Indonesian Hotel and Restaurant Association (PHRI deputy head, Maulana Yusran, said two industries that mostly affected by the price hike of airline tickets were hotel and travel agent.

Maulana explained throughout January until April 2019, hotels faced a significant drop in the occupancy rate. “The occupancy rate declines by 20-40 percent,” said Maulana when met in Millenium Hotel, Kebon Sirih, Central Jakarta, on Wednesday, April 24.

When compared to the same period last year or year-on-year (yoy), the decrease only recorded at 10 percent during the low season. Hotels experiencing significant drop were those located in the area that lack of tourism destinations, such as Bengkulu and other cities in Sulawesi province.

Presently, hotels depend on the visit from official trips despite it provides a low contribution. Meanwhile, hotels situated in tourist regions including Bali and Lombok only depend on the visit of foreign tourists.

The Association of Indonesian Tours and Travel Agencies (ASITA) secretary-general, Titus Indrajaya, said a total of 350 travel agents decided to quit the association due to the business downfall following the airfare hike.

Titus explained travel agents experienced loss of business considering they averagely counted on the profit from flight ticket sales. “Some 60 percent of 7,000 members sell airline tickets,” he noted.

FRANCISCA CHRISTY ROSANA

Read: Domestic Airfare Costly; Indonesians Opt Traveling Overseas