-1-1920x1281.jpg&w=3840&q=75)
The Indonesian Association of Travel Agents (ASITA) has welcomed the government’s move to reduce domestic flight ticket prices by up to 10% for the 2024/2025 Christmas and New Year period. However, Deputy Chairman Budi Ardiansjah expressed concerns about the timing of the policy. He suggested it might be too late to have a significant impact.
Ardiansjah acknowledged the government's effort but mentioned that the policy comes at a time when most people have already purchased their tickets months in advance, making it less effective for travelers who planned early for the peak season.
He pointed out that the end of year is a peak period with high travel demand, and a price reduction at this stage seemed somewhat out of place. He emphasized that such measures would have been more beneficial if implemented consistently after the holiday season.
Advocating for affordable travel costs
Ardiansjah also stressed that the price reduction should not be a one-time action but should continue beyond the holiday period. He argued that sustained efforts in lowering prices could provide more long-term benefits for the tourism sector.
Despite the potential limitations of the timing, ASITA remains hopeful that the reduction in ticket prices will still benefit the tourism industry. More affordable flights could encourage more people to travel to domestic destinations, making them a more attractive option for travelers.
The government introduced the ticket price reduction as part of its broader efforts to stimulate the air transport and tourism industries, which continue to face challenges. Officials estimate that the measure could save up to IDR 472.5 billion during the New Year period.
The Ministry of Coordinating Affairs for Infrastructure and Regional Development outlined that the price cut would be supported by several measures, including a 50% discount on airport service charges, a 5.3% reduction in aviation fuel prices, and an 8% cut in fuel surcharges for jet engines.
These interventions are expected to reduce ticket prices by up to 9.9%, with an average savings of IDR 157,500 per ticket.