The travel industry is a rather intricate environment for organizations to operate in due to numerous factors that affect customers’ preferences and choices. Expedia has been known as a travel aggregate site that contains a plethora of information concerning travel fares (“About Expedia,” n.d.). Thus, customers have been using the site to compare fees and define the most effective ways of traveling from one point to another. Entering the Indonesian market is going to be rather challenging for the company for several reasons, the key one concerning the language barrier and the hindrances in establishing a cross-cultural dialogue with its Indonesian partners.
The fact that the Indonesian economy is currently on the rise indicates that Expedia is bound to have a significant advantage in setting its business in the specified market. According to Kurniawan and Managi (2018), Indonesia has been advancing in the global economy quite surely, with the recent change in the country’s GDP indicating that the state economy is on the rise. The observed change will serve as the support for introducing Expedia to the Indonesian market and encouraging its development within the target setting. Similarly, the current alterations in the economic growth rates are likely to produce a positive impact on the demand for the provided services (Pujani, Yeni, Widiastuty, & Asmony, 2017). Therefore, it is expected that, with the economic advancement of the state, Indonesians will show the propensity toward more active traveling and, thus will use Expedia’s services more often.
Distributing the services that Expedia offers, in turn, is likely to be a challenge for the organization that is mostly unknown in the Indonesian market. Nonetheless, the goal of distributing Expedia’s services will become more attainable once online tools for advertising them are launched. A campaign geared toward Indonesian citizens will be necessary (Kurniawan & Managi, 2018). With the help of the virtual service distribution, the organization will be capable of targeting different types of customers, thus increasing its range of clients and appealing to a wider demographic.
Given the fact that Expedia provides digital services and offers an online substitution of similar organizations that are much slower and significantly less efficient, the company’s success hinges directly on the technological development of Indonesia. Luckily, the country has been experiencing a technological revival over the past few decades, with digital tools becoming increasingly popular among its citizens (Pujani et al., 2017). Therefore, it will be necessary to appeal to the demand of the Indonesian buyers that are technologically advanced (Spaan & Naerssen, 2018). Consequently, creating an elaborate Segmentation, Targeting, and Positioning (STP) framework for entering the Indonesian market should be Expedia’s current priority.
Due to culture- and language-related issues, as well as the presence of infrastructure-related challenges, Expedia is likely to encounter several large obstacles on its path to building a presence in the Indonesian market. However, by creating an elaborate digital environment and a successful promotion campaign, Expedia will succeed at building a presence in the Indonesian settings, thus attracting a large number of customers.
References
About Expedia. (n.d.). Web.
Kurniawan, R., & Managi, S. (2018). Economic growth and sustainable development in Indonesia: An assessment. Bulletin of Indonesian Economic Studies, 54(3), 339-361.
Pujani, V., Yeni, Y. H., Widiastuty, E., & Asmony, T. (2017). A study toward website adoption level among travel agencies in Indonesia using technology-organization-environment model. Advanced Science Letters, 23(1), 490-493.
Spaan, E., & Naerssen, T. V. (2018). Migration decision-making and migration industry in the Indonesia–Malaysia corridor. Journal of Ethnic and Migration Studies, 44(4), 680-695.