
Digital and Its Impact on Vacation & Leisure Planning
11 June 2024
In recent years, consumer behavior in planning vacations and leisure activities has significantly changed, especially with the widespread use of digital technology and social media. According to data from the Indonesian Internet Service Providers Association (APJII), internet users in Indonesia reached 221 million people in 2024, with 95% of them active on social media — and this number is still increasing. Survey results also show that internet penetration in Indonesia has reached 79.5%, experiencing a 14% increase. This indicates the substantial influence of digital technology in daily life, including in the process of planning vacations and leisure activities. Digital platforms not only facilitate access to information but also offer various conveniences in finding inspiration, comparing options, and making bookings. Let's delve deeper into how the digital world shapes the way Indonesians plan their vacations and leisure!
Social Media and Sources of Vacation and Leisure Inspiration
Statistics on Indonesian Social Media Users on Various Platforms 2024, Slice)
Looking at the data on the number of social media users in Indonesia, it is clear that social media plays an important role in life, including as a source of travel and leisure inspiration. Platforms like YouTube, TikTok, Facebook, and Instagram can be the primary places for users to find new destination ideas and vacation activities. Influencers or travel content creators often share interesting content in photos and videos that significantly influence the choice of tourist destinations among their followers. For example, travel content by influencers on Instagram can increase visits to certain destinations by up to 70%. Moreover, the social phenomenon of Fear of Missing Out (FOMO) arising from social media posts also supports the increase in tourist visits.
Unsurprisingly, user-generated content such as reviews, photos, and videos from other users, along with the social phenomena it creates, becomes very important in shaping vacation perceptions and decisions. Research shows that 92% of consumers trust content created by others more than conventional advertisements. In Indonesia, this is highly relevant as many travelers rely on online reviews — such as through Google Maps reviews or returning to review content on social media — before deciding on destinations or vacation and leisure services. A study by TripAdvisor found that 86% of travelers read online reviews before booking accommodation or tourist activities. More than that, many travelers agree that uncomfortable accommodation can ruin their vacation.
Potential conditions that can ruin the vacation atmosphere:
(Tripadvisor Travel Beats Report 8/22, N=2,764; AU, IT, JP, SG, UK, US)
This condition underscores the strong influence of user-generated content in the travel and tourism industry. Therefore, travel influencers and content creators also have a significant impact on vacation decisions. They not only provide destination recommendations but also often offer detailed guides on places to visit, restaurants to try, and activities not to be missed. For instance, influencers like Marischka Prudence, Kadek Arini, and Anggey Anggraini (@her_journey) have thousands of followers who trust their travel advice. The content they post on Instagram, and even YouTube, often boosts the popularity of certain destinations, demonstrating that social media functions not only as a platform for sharing travel experiences but also as a highly effective marketing tool for tourist destinations.
The Influence of Online Booking Platforms
Traveloka, Tiket.com, and Agoda as online booking platforms or Online Travel Agencies (OTA) are very popular in Indonesia — as their presence facilitates consumers in planning and booking all their travel needs. According to katadata.co.id, online ticket transactions reached USD 5 billion in 2015 and are estimated to reach USD 25 billion by 2025. In Berita Satu and Antara News, Traveloka, one of the largest OTAs in Indonesia, reported more than 40 million app downloads — with over 40 million active users. The popularity of these platforms demonstrates how easy access and the various options offered by OTAs have transformed the way Indonesian consumers plan their vacations.
One of the main features that make OTAs very attractive is their ability to provide personalized recommendations. Artificial Intelligence (AI) used by platforms like Traveloka and Tiket.com can analyze user data, including search and booking history, to provide destination and activity recommendations tailored to individual preferences. A study by McKinsey shows that effective personalization can increase revenue by up to 15% and marketing efficiency by up to 30%. In Indonesia, Traveloka uses AI technology to recommend hotels, flights, and activities based on user preferences and behavior, which has proven to increase customer satisfaction and loyalty.
The effectiveness of personalized recommendations on local platforms can also be seen in case studies showing significant increases in sales conversions. Many OTAs report experiencing more than a 5% increase in booking conversion rates after implementing AI-based recommendation systems. These algorithms not only help users find the best deals but also ensure that every recommendation is relevant to their interests and needs. Thus, the ability of OTAs to provide personalized services has been a key factor in their success in the Indonesian market, providing significant added value for consumers seeking more planned and organized travel experiences
The Future of the Tourism Industry
The presence of digital services simplifies vacation planning and execution by combining various features into one platform. The use of all-in-one platforms allows travelers to plan their entire trip — from departure tickets, and accommodation to activities — all within one app, as is the case with various OTAs currently available in Indonesia. According to Statista, the use of travel apps increased by 30% in 2021 compared to the previous year and is expected to continue to rise. According to reports from Google and Temasek, the OTA market in Southeast Asia is projected to reach USD 43 billion by 2025, with Indonesia as one of the main contributors. This is also supported by other reports stating that Indonesia will rank in the top four in the world for tourism by 2035. This reflects the high demand for convenience and efficiency in vacation planning.
For tourism industry players, it is important to leverage these digital trends to attract more customers. Some tips and strategies that can be implemented include: first, increasing online presence and activity through responsive social media and websites — encouraging user interaction can enhance the visibility and attractiveness of destinations. Second, offering personalized experiences using data analytics to understand customer preferences — which can start with conducting market research with Clove Research & Marketing Analytics. Third, collaborating with influencers and travel communities to promote destinations and services.
With the increasing adoption of technology and awareness of the importance of sustainability, Indonesia's tourism industry has great opportunities to grow and meet the needs of modern travelers. Continuous innovation and service integration will be key to a better and more responsible future for tourism. Clove Research & Marketing Analytics is ready to support you in achieving all of this!