Caesar Indra, President of Traveloka, Southeast Asia’s leading travel platform, recently shared his perspective on the state of tourism in Southeast Asia and the evolving travel demands of consumers post-pandemic.
In an exclusive interview with BusinessToday, Indra discussed how Traveloka is supporting the recovery of the travel industry and its commitment to promoting sustainable practices. He also highlighted the latest travel trends and initiatives taken by Traveloka to elevate sustainable tourism in the region.
Travelers’ Changing Preferences towards Sustainability
According to Indra, travelers in Southeast Asia are increasingly incorporating sustainability considerations into their travel plans. They are prioritising accommodations and activities that support the environment and local communities.
Internal data from Traveloka reveals that 80% of surveyed travelers in Indonesia are more likely to choose accommodations with sustainability practices. This shift towards sustainable travel is prompting the region to move away from mass tourism and embrace ecotourism, emphasising nature and culture preservation.
Traveloka’s Efforts to Promote Sustainable Tourism
To meet the growing demand for sustainable travel, Traveloka joined the Global Sustainable Tourism Council (GSTC) in 2022. The company has committed to sponsoring training programs for its hotel partners in Indonesia, Vietnam, and Malaysia, providing in-depth knowledge of the GSTC Criteria, the global standard for sustainability in travel and tourism.
These initiatives aim to empower hotel partners to implement sustainable practices and develop actionable tourism policies.
Assessment of the Tourism Landscape in Southeast Asia
Indra noted that tourism recovery in Southeast Asia has been strong, with total flight bookings on Traveloka’s platform growing by more than 20% between January and May 2023 compared to the same period in the previous year.
While international travel growth has been significant, domestic travel remains a key driver in the region’s tourism recovery. Staycations and local weekend destinations have gained popularity, indicating that travelers are exploring their own countries.
Facilitating Digital Payments in the Travel Business
As a fintech company, Traveloka has been at the forefront of facilitating digital payments in the travel industry. Indra explained that digital payment options were introduced to make travel more convenient and accessible, especially for consumers with limited access to traditional banking facilities.
Around 30% of Traveloka’s consumers used digital payments through the platform in 2022, highlighting the potential for integrated financial services in the travel sector.
The Reshaping of Travel Tech and Future Trends
According to Indra, travel tech is evolving to meet the changing needs of tech-savvy travelers. The pandemic has accelerated the demand for convenient and seamless travel experiences.
Artificial intelligence (AI) and technologies like generative AI are set to play a crucial role in transforming the industry, improving productivity, and providing personalised services.
Indra emphasised the importance of leveraging technology to deliver a connected experience, especially for millennials and Gen Z travelers.
The Future of the Travel and Tourism Industry in Southeast Asia
Indra predicted that the travel industry in Southeast Asia will experience a green wave, with a strong focus on sustainability. Businesses and travelers alike are becoming more committed to prioritising the environment, and consumers are willing to pay more for sustainable experiences.
Indra highlighted the industry’s resilience and the need for ongoing collaboration to drive sustainable tourism forward.
Traveloka’s Sustainable Initiatives
In line with its commitment to sustainability, Traveloka joined the GSTC and sponsored training programs for hotel partners. The company aims to play a strategic role in supporting environmental agendas across its operating regions.
Indra shared that Traveloka’s latest campaigns in Malaysia, such as the International Travel Fiesta and the partnership with Malaysia Airlines, are designed to promote travel and offer attractive deals to consumers.
