Seeing the Future of the Umrah Marketplace in Indonesia

According to data from the Ministry of Religion, the number of pilgrims who have departed and performed Umrah was around 1,1 million people in 2018 and is predicted to continue to rise this year. Umrah worship, according to its provisions, must be facilitated by a travel agent registered with the Ministry of Religion and the Saudi Arabian Embassy and joined in the Umrah Travel Organizing Organization (PPIU),

In accordance with the times, OTA marketplaces began to emerge (online travel agents) which facilitates the online purchase of Umrah packages. As a marketplace, they do not create their own packages and agencies.

In percentage terms, the number facilitated through the marketplace is still relatively small, but seeing the trend of young people who are increasingly interested in Umrah tourism, the potential is actually quite interesting in the future.

The Ministry of Communication and Information recently invited two popular unicorn startups, Traveloka and Tokopedia, to make it easier to purchase Umrah packages from agents online. Although there was a polemic, the two of them did not directly take care of this activity.

PR Director Traveloka Sufintri Rahayu said, "The purpose of this initiative is to help make it easier for more Indonesians to perform Umrah. We hope that in the future, with the convenience of digitizing Umrah travel, more Indonesians will be able to perform Umrah. "

Both Tokopedia and Traveloka will coordinate with the Ministry of Religion and the Ministry of Communication and Information.

"Of course, in carrying out this discussion, the relevant team will also work together and partner with the PPIU as a member of the PPIU stakeholder The main goal of the Umrah travel business is as good as possible in order to create an easy and comfortable Umrah experience for the people of Indonesia," Sufintri continued.

Synergy and competition

Umrah marketplace services that are already present in Indonesia, such as: go on a trip, Umrah and Umrah.com welcomes the entry of Tokopedia and Traveloka into the realm of business that they are already running. Nevertheless, there are some things that are expected to be a concern for competition and collaboration in the future.

According to Umroh.com Commercial Manager Lia Firdausy, the current millennial technology and market are opportunities that are increasingly being looked at by similar players. No wonder Traveloka and Tokopedia try to offer similar services. One day, these millennials will become the most Umrah participants.

"The millennial era cannot be separated from the development of digitalization, as will the Umrah industry later. Like it or not, all must be able to synergize with each other. But keep in mind, it is not easy to adapt an industry that has a large market and players into the digital industry such as Umrah. Policies are needed that benefits both parties."

Meanwhile, the COO of Perugiumroh Abul Almaujudy said that the marketplace could position itself as a partner for consumers travel agent who have joined the PPIU. If the service presents its own product, it is less likely to be able to launch the service independently. Marketplace can provide a more comfortable experience for those who are used to doing online transactions. The offline market that has been widely practiced so far travel agent keep running as usual.

"Even though by law, the Umrah marketplace doesn't have a place yet. ya the industry stakeholders should sit down together to formulate the rules of the game. Digital is a necessity, it can't be stopped."

He added, whatever form of service that Tokopedia and Traveloka would provide, Periumroh would still welcome any initiatives whose goal is to make Umrah more accessible to more and more people safely, comfortably, and promote the spirit of collaboration.

A big name for a unicorn startup was also mentioned by CMO Kitaumroh Eka Ananda Mumpuni as a positive thing for the online-based Umrah service industry in the future. The presence of these two unicorns is predicted to further spur competition. Thus the marketplace services become more competitive.

"We believe that this competition will make us more innovative and continue to try to create added value for prospective pilgrims so that they can compete and provide the best experience for prospective pilgrims who want to perform Umrah."

Challenge

The difficulty of running an Umrah business is one of the reasons why the online marketplace is not yet time to compete with other players. According to Lia, travel agent conventional ones can still survive the onslaught of OTAs, because many are packaged via email Wholesale (wholesale) has a low price because it has a room allotment to be allocated for a year.

"I see that in the next three years the Umrah marketplace will still have many challenges. [...] Still have to gain trust from the public for online payments, especially after the fraud case some time ago. Online platforms are also often only used as a forum for comparison and seeking information. In the end more people are transacting offline."

One of the efforts made is to foster trust among the community and present various worship packages at affordable prices. Given that the funds used for worship are not small, building trust is the toughest and most important challenge.

Eka said the same thing. According to him, trust is a very crucial factor in the religious industry. Another factor is a good product and answer the needs of the community which will impact on loyalty. Customer loyalty will be manifested into many user base, an essential metric for startups.

"Marketing activities are also mandatory to pay attention to. Trends marketing currently undergoing a transition to marketing creative. Even with relatively limited resources [but] with the right marketing method, then exposure massive ones can be obtained, so touchpoints to customers will increase."

The more mature consumers, in terms of technology adoption, is enough to help the Umrah marketplace players offer their services.

In order to excel, one of the offers that can be launched is to provide a variety of product options, for example bundling with other travel and various financing schemes.

"I see that currently the public's understanding and trust is increasing in number regarding the purchase of Umrah packages through the marketplace. When asked about the possibility, can reach 20% of transactions through the marketplace within the next three years, then the answer is very possible and possible," concluded Almaujudy.