India in top 3 markets for Indonesia

Pacto Indonesia expects India to jog past Japan by early 2018 to assume the number three spot as a source market, not just in Asia but worldwide, for Indonesia.

Indonesia-based Pacto Ltd in collaboration with its India partner, AHS India, recently concluded its annual two-city roadshow in Mumbai and New Delhi. The 22-member delegation of Pacto, representing 29 products, comprised various hotels and attractions, including some first-timers. This showed a huge interest in the Indonesian market to reach out to India, and for good reason.

According to Umberto Cadamuro, COO (Inbound), Pacto Ltd. Indonesia, this year, India might pip Japan, which is currently the number three source market, or at least by 2018. “Business coming from Asia is becoming more and more important for Indonesia. India specially has been showing a steady growth. My best guess will be that India will overtake Japan for the third overall spot. While Australia and China are still a long way ahead, it is reasonable to assume that Japan will be overtaken by India this year. If not this year, then definitely by 2018.” He attributes this to the increased airlifts by Malindo Air, Garuda Indonesia and AirAsia X.

Pacto, that celebrates its 50th anniversary this year, isn’t looking to add any more cities for the roadshow, but it is open to host trade members from other cities who are interested in attending through its representative office in India – the Gurugram-based AHS. The roadshow this year saw loyal as well as new participants, including an Indian restaurant and plenty of activities and attractions, apart from hotels, cruises, safaris and cultural shows. “The type of properties coming to India is also changing because of the type of airlifts. We are looking a lot more at aggressive pricing because of the low-cost carriers. There is very little knowledge about the rest of Indonesia in India, but we have started to feel that people want to learn more about Indonesia beyond Kuta and Ubud in South Bali. We are starting to see interest for North Bali and the outer islands specially Jogjakarta for its religious and historical links,” Cadamuro adds. Pacto currently handles over 40,000 Indian passengers per year. “Until some years ago we were basically a honeymoon destination, but now the MICE market is booming for us, specially incentive. My suggestion to the trade is: think in terms of a longer stay. Three nights is not enough to see Indonesia. You need five nights just for Bali and at least nine nights for Indonesia. With about 132,000 star-rated rooms, we can cater even to a lastminute market like India,” Cadamuro promises.