Small and medium enterprises in Indonesia call on govt. to work with online travel agencies

Small and medium enterprises in Indonesia called on the government to work with online travel agencies (OTAs) to boost post-Covid-19 travel recovery recently. It said during this crucial recovery period, more private-public collaboration will boost travel confidence where the local government can draw on the private sector’s commercial expertise to spot and create new opportunities to improve the industry, businesses and lives impacted by the pandemic.

“The government can do more to engage the private sector especially around decision making and cooperative marketing.” – tour operator SME in Indonesia said in a report by the Pacific Asia Travel Association (PATA).

PATA’s research report entitled “The role of Online Travel Agencies (OTAs) in supporting Asia-Pacific SMEs in Recovery” aims to provide insights to benefit small and medium enterprises (SMEs) in the hospitality and tourism space that make up a large proportion of travel providers, as they pivot and adapt in the face of COVID-19.

“OTAs are providing a great service by promoting a range of existing and new destinations, all seasons and many different experiences. Given this we really need Government to support the development and management of infrastructure,” another hospitality SME in Malaysia said.

There in Malaysia, OTAs to some extent perform the function of ‘national marketer’, promoting more areas in Malaysia and the tourism products and experiences.

“We understand this is related to KPIs and what will generate the most revenue. Destinations like Langkawi and Penang have benefited quite a lot,” an industry player from Malaysia was quoted as saying.

Agoda MD of Global Affairs Greg Wong said successful hotel names use data and technology for price and marketing optimisation while some SME tourism enterprises up on the wrong end not knowing how to conduct complex data analysis and global marketing in-house.

“We are optimistic that the industry will eventually recover with governments and private sectors coming together to ensure that no one gets left behind. We look forward to working with our partners, such as Agoda, as we continue to hear from SME operators and how we can advance the discussion around the future of travel and tourism in the Asia Pacific region, one that is sustainable and inclusive for all,” Wong said.

He added OTA’s are technology partners that are able to provide SME’s with a comprehensive understanding of data insights that can help enhance businesses.

Some of the key findings from the report included the progression of relationships between OTA’s and SME’s in today’s market.

“OTA”s are being acknowledged and valued as a technology, data, and marketing partner. It is vital for SME hospitality providers to understand trends and reach new audiences during these times. Some of the benefits that SME’s can obtain from leveraging OTA’s include reducing the top-down investment for payment features, customer support, and marketing efforts,” it said. It also said OTA’s have expanded opportunities for destination diversification, which has helped drive tourism in second and third-tier cities.