Indonesian event operators are pivoting their strategies to keep corporate incentive travel on track, as a weakening rupiah and lingering global instability force clients to tighten travel budgets.
The currency’s recent slide toward historic lows against the US dollar, paired with fragile business sentiment worldwide, has made companies far more cautious with their event spending.
Anton Sumarli, director of Travelux Travel Services, said operators now need to stay flexible as corporate clients make more last-minute requests or changes.
Travelux has responded by adjusting itinerary designs, including building in more free time during trips to allow on-the-ground changes without disrupting the overall schedule.
“For example, on a five-day trip, free time that used to be just a few hours can now be extended to one or two days, depending on the budget. We have to stay creative and be ready when clients need us,” he added.
Pacto, meanwhile, is trying to stay competitive without sacrificing service quality.
Eni Susilowati, general manager of Pacto’s Jakarta office, said the company is helping clients adjust destinations and hotel categories, while using more in-house staff instead of freelance tour leaders to manage costs.
Pacto has also seen around 80 per cent of its outbound incentive trips cancelled since March, with the rest mostly postponed to next year.
Eni said that bidding invitations for 4Q have fallen sharply, and most inquiries now are for smaller groups travelling closer to home.
“In times like this, we believe working together with the client to find the best solution is better than just lowering the price,” Eni shared.
Eddy Efendy, director of Synergy Production Travel and Events, takes a more consultative approach, starting by understanding what the client wants and their budget. “We tailor the arrangement around that,” he told the Daily.
Richard Mulyanto, international events and incentive manager at Golden Rama Tours, believes that helping clients find the right destination has become just as important as planning the trip itself.
“If Europe is no longer within budget, we usually encourage clients to look at other destinations first. Australia and New Zealand have become good alternatives, while Japan and China continue to offer good value for clients to keep costs under control,” he said.
