Pegipegi Officially Closes Its Services

After almost 12 years of operating as an Online Travel Agent (OTA) service in Indonesia, Pegipegi as of December 11 2023 has officially stopped its operations. This was conveyed by the company via official site. Pegipegi Services at website and the application can no longer be used.

Pegipegi last accepted orders on December 10, 2023. Even though it is closed, the company ensures that customers who made previous purchases can still take advantage of tickets or voucher which has been purchased. Pegipegi CS via email is also still activated if a request is needed refund, reschedule, or complain.

DailySocial.id I have tried to contact Pegipegi to ask for further information, but have not received a response.

Since 2018 Pegipegi's business has been acquired by Traveloka. According to reports uploaded to the regulator, as quoted by Alternatives.PE, the acquisition value reached $210 million.

The Covid-19 pandemic that has occurred since 2020 has devastated the OTA business. However, according to management, including Pegipegi, in Q1 2021 their business has started to recover. VP Commercial Pegipegi said at that time that in that period the combined recovery in its two main businesses was 51%.

Signals of weakening Pegipegi's business have also been detected since the resignation of Serlina Wijaya (CEO) at the beginning of this year. This is accompanied by the quantity of promotional activities which has decreased significantly this year. However, the company did not explicitly convey the key reasons behind this closure decision.

Traveloka itself is in the middle streamlining its business this year. They have closed a number of secondary services in the application, such as bill payments, logistics, delivery, etc Grocery. This is done so that the company focuses on its core business and can better increase profitability.

With Pegipegi's resignation, currently the local OTA market is dominated by two services unicorn The main ones, namely Traveloka and Tiket.com.

The online travel business itself is a big contributor to the digital economy in Indonesia. According to the e-Conomy SEA 2023 report, this year the sector's contribution is projected to reach $6 billion, up 68% yoy.