Foreign Travel Agencies Expanding into Yogyakarta
In this article (4)
The competition in travel agency business is getting stiffer in the wake of the free trade agreement of ASEAN Economic Community (AEC). The free trade agreement implementation has seen foreign travel agencies competing directly with local agencies, including in Yogyakarta.
“Foreign travel agencies have been expanding into Yogya in the past two years,” said Edwin Ismedi Himna, Counsellor of Asita Associatoin of The Indonesia Tour & Travel Agencies (Asita) Yogyakarta.
He said that the foreign travel agencies are originated from Korea, Japan, the United States and France.
The free trade agreement implementation will see foreign travel agencies handle both domestic and overseas vacation packages. “Local agencies are being left behind despite efforts [to compete] by setting competitive or cheaper prices,” Edwin said.
According to Edwin, of 190ish current member travel agencies incorporated in Asita Yogyakarta, only 30 percent are still handling European and American tourists. “Most agencies prefer to keep targeting Asian tourists that are deemed to have more potential by exploiting short-haul destination programs,” he said.
Questions & Answers
Q.What impact has the free trade agreement had on the travel agency business in Yogyakarta?
What impact has the free trade agreement had on the travel agency business in Yogyakarta?
The free trade agreement has increased competition, with foreign travel agencies directly competing with local ones. It has also enabled these foreign agencies to handle both domestic and overseas vacation packages.
Q.Which countries are the foreign travel agencies expanding into Yogyakarta from?
Which countries are the foreign travel agencies expanding into Yogyakarta from?
The foreign travel agencies expanding into Yogyakarta are originating from Korea, Japan, the United States, and France. This expansion has been observed over the past two years.
Q.How are local travel agencies in Yogyakarta adjusting their business strategy?
How are local travel agencies in Yogyakarta adjusting their business strategy?
Most local agencies now prefer to target Asian tourists, seeing more potential there through short-haul destination programs. Only about 30 percent of Asita Yogyakarta members still handle European and American tourists.
Reader pulse
Is Yogyakarta's travel market now too competitive?
23,505 votes so far