Travel Agencies Are Getting On The Edge Of The Horn

Photo by Mantas Hesthaven on Unsplash

JAKARTA - The fate of the travel agency is currently on the line. Let alone facing the COVID-19 pandemic. Far back, they have also been battered by applications for booking travel tickets or hotels.

Behind the ease with which we buy and find tickets and lodging through our devices, there is a serious threat to many travel agencies. They are threatened because of the ease with which people can access them online. Moreover, during the Corona virus pandemic, travel agencies were getting worse, because of the lack of bookings.

This complaint was conveyed by a member of Commission X DPR RI, Rano Karno during a virtual meeting of the Commission X Tourism Recovery Working Committee (Panja) of the DPR RI, Monday, July 13. The complaint refers to his experience of running a hajj and umrah travel agency business.

"I myself implement directly this tourism. In the past I had a travel agency for Hajj and Umrah. With the arrival of the application, the world of tourism has started to shift. In the past, travel agencies lived off discounts. Now there are no more discounts, because I can order tickets online. Booking hotels through travel agencies, now you can directly use the online application, "said Rano as quoted from the official website of the DPR.

According to data from the International Air Transport Association (IATA), the volume of flight ticket sales fell by more than almost 95 percent in the period from January 26 to April 24, 2020. The airlines made a massive reduction in flight frequency. Currently, many airlines are in debt to travel agents.

"This condition not only disrupts the travel agent's cash flow, it is also dangerous for consumers. Corporate or government clients who have a credit period with travel agents are generally reluctant to pay for refunded plane tickets. Meanwhile, travel agents have to process refunds to airlines which take approximately 2 years. -3 months, "explained Chairman of the Jakarta Chamber of Commerce and Industry (Kadin) Tourism Standing Committee, Amien Balubaid.

As reported by Tempo, Deputy Chairman of the Association of Travel Companies, aka Asita Budijanto Ardiansjah, said that currently 98 percent of the company members of his association have temporarily closed following the outbreak of the Corona Virus aka COVID-19. There are three reasons for travel agency companies not to operate in this condition.

"First, we comply with the government's advice regarding working from home, then the current condition has zero transactions, and the last reason is for efficiency," said Budijanto.

The number of Asita members is currently around 7,000 companies with a total number of employees of around 60 thousand people throughout Indonesia. Those who are still able to operate, apply the picket system. However, if until the end of this month the situation does not change much, it is estimated that they will also temporarily close their business.