Indonesian outbound business events players are reporting that more corporate incentive trips to Europe are being postponed or rerouted as the Middle East conflict disrupts transit routes and raises safety concerns.
Vidya Hermanto, CEO of Panorama JTB Tours Indonesia, said the impact has evolved gradually rather than through sudden cancellations.
“In the first week of airspace closures, there were no cancellations. By the second week, some corporates started postponing, especially those using Middle Eastern carriers. By the third week, postponements continued even after flight schedules had returned to normal,” she said.
Some companies are proceeding with their plans but switching destinations, with Japan as the leading alternative followed by Australia and New Zealand, according to Vidya.
Despite the decline in Europe-bound trips, Vidya shared that overall demand remains higher than last year. “In 1Q2025, we had about 150 groups, while this year it’s around 200. But since there are fewer Europe trips, margins have come down,” she said.
Edhi Sutadarma, director of Golden Rama Tours and Travel, is also seeing postponements, with trips scheduled for April and May being pushed to September and October as companies wait for conditions to stabilise.
“Most corporates are now avoiding Middle Eastern carriers or routes passing through the region, with decisions driven primarily by internal risk assessments,” Edhi said.
In some cases, companies are choosing not to reroute at all, instead canceling trips and replacing them with cash rewards.
“Postponing creates timing challenges when the next programme is already coming up, so some companies choose to give cash rewards instead,” said Pauline Suharno, chairman of The Association of Indonesian Travel Agents (ASTINDO).
However, she added that a bigger concern lies in forward demand, with many clients holding back on new bookings to Europe. “With ongoing global uncertainty and the domestic economy slowing, incentive trips to Europe could decline by more than 10 per cent in 2026,” Pauline said.
Meanwhile, Harry Dwi Nugraha, CEO of Ego Global Asia, said clients are likely to focus more on domestic and regional trips in 2026.
“With tighter budgets, companies are not only looking for unique destinations, but also new and creative activities to make trips more meaningful,” he said.
