The value sales declines recorded in experiential luxury as the COVID-19 pandemic took hold of the country were among the most severe seen across the entire Indonesian luxury goods industry. One of the main factors behind this performance was the government-mandated closure of all hotels, restaurants, leisure centres, and entertainment facilities during the initial stages of the pandemic.
One of the major casualties of the COVID-19 pandemic was the global travel and tourism industry. Luxury travel was hit harder than Indonesia’s overall travel and tourism industry as the uncertain economic environment placed substantial pressure on discretionary spending.
While leisure travel faced falling demand in Indonesia during the pandemic, the situation was even worse in business travel, a major pillar of luxury accommodation. Indeed, international business travel ground to a halt as Indonesia’s borders were closed to foreign visitors and most commercial flights were grounded early in the pandemic as key measures to control the spread of the COVID-19 virus.
In the next couple of years, the performance of experiential luxury is anticipated to continue to register double-digit retail value growth, albeit not as large as the negative growth recorded in the first year of the pandemic. The full recovery of the category is expected to be delayed due to the lingering negative impacts of the COVID-19 situation.
The forecast period is expected see major changes in consumer behaviours due to the experiences gained from the COVID-19 situation. For example, consumers may opt to stay closer to home when travelling, particularly during the early forecast period when they are still afraid of contracting the virus.
One factor which could prove instrumental in the recovery of experiential luxury in Indonesia is a shift towards greater digitalisation. Many players in luxury travel and tourism are already making strong moves in this direction, specifically via the introduction of online bookings for luxury hotels and the offer of more immersive virtual reality experiences.
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Understand the latest market trends and future growth opportunities for the Experiential Luxury industry in Indonesia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Experiential Luxury industry in Indonesia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This is an aggregation of Luxury Hotels and Luxury Foodservice.
This report originates from Passport, our Experiential Luxury research and analysis database.
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