Incentive travel trends among Indonesian corporates are shifting in response to economic pressures, with companies opting for more frequent, smaller-scale trips to closer destinations.
Several outbound travel companies in Indonesia that TTGmice spoke to noted that while the overall number of incentive trips was up, budgets have been significantly reduced, sometimes by up to 20 per cent. Group sizes have also shrunk.
Vidya Hermanto, CEO at Panorama JTB Tours Indonesia, said: “We are handling more groups this year than last, however, they are seeking shorter durations and destinations to fit tighter budgets.”
She noted a significant drop in demand for Europe, and virtually no interest in the US. In contrast, China is booming in popularity, and Japan remains a favourite.
Vidya said that companies were sending fewer achievers. For example, a company that sent 40 staff last year might only send 25 now.
Anton Thedy, managing director of TX Travel, shares a similar view, as well as a growing number of inquiries for 2026.
He shared: “When business slows down, companies often motivate their sales teams by lowering targets and increasing the number of incentive trips, but to more economical destinations.
“One of my clients who normally runs two large trips in a year has now increased their trips to six smaller ones to motivate their team.”
Anton is also seeing a lack of demand for the US and Europe, while Malaysia, Thailand, and in particular China were popular, budget-friendly choices.
“China has products that fit the low, mid, and top tier achievers,” he said.
Some luxury-focused trips are still happening, according to Richard Mulyanto, international events and incentive manager at Golden Rama Tours & Travel.
He sent several high-end groups to Europe and the UK, but observed that clients who had not met their targets either postponed their trips or redirected them to Asia and Australia.
Stephanus Sumarli, owner of Xpert Indonesia, also confirmed that short-term programmes were being postponed or rerouted.
“The main challenge for us now is securing new programmes as clients are in a ‘wait and see’ mode,” he said.
Despite the reduced budgets, travel companies are committed to maintaining a high standard of experience.
Even when a destination was switched from Europe to Asia, the service level, including the hotel category, remains consistent, stated Stephanus.
Meanwhile, Richard emphasised it was important to offer new and unique activities to keep trips memorable. For instance, Golden Rama has included special experiences in their itineraries, such as a Yakatabune Dinner Cruise in Tokyo and a spectacular show in Chongqing, to ensure the trips remain exceptional despite the budget constraints.
