Ticket Sales GIAA Targeted Up Two Digits

JAKARTA - Garuda Indonesia's main airline is optimistic that profits through ticket sales will grow 12.6 percent this year to US $ 2.9 billion.

Director of Marketing & Information Technology Nina Sulistyowati said the revenue increase will be vacated by domestic and international flight ticket sales.

Throughout last year, revenue from ticket sales broke through US $ 2.6 billion with details of revenues from domestic ticket of US $ 2.6 billion with details of revenues from domestic ticket of US $ 1.98 billion and International amounting to US $ 0.62 billion.

"Now [2018] we are targeting [break] US $ 2.93 billion," he said on Monday (2/4).

This year, he targets revenues from domestic tickets exceeding US $ 2.1 billion while from international ticket sales worth US $ 0.8 billion.

To increase ticket sales, Garuda maintains customer service. "Therefore, it differentiates Garuda Indonesia from other airlines," he explained.

He added flight safety and timeliness (OTP) are also a major concern for national airlines. Moreover, Garuda is an airline that sells services.

Unfortunately, the level of airline OTP in 2017 reached 88.5%, or decreased compared to the year 2016 of 89.5%. It is claimed to be caused by the impact of Mount Agung eruption disaster at the end of last year.

Nina explains the marketing of ticket sales not only for one flight route, but rather will form a network of connectivity. For the Tokyo-Jakarta route, he quotes his team aside from selling round-trip tickets as well as directing a continuing flight to nearby destinations.

On the other hand, issuers with GIAA code actively cooperate with domestic companies, both private and state-owned. In fact, the development of such efforts will be made to overseas companies. "We will develop more cooperation with foreign companies," he said.

He also continues to increase the utilization of aircraft that is currently claimed to have reached 10 hours per day. The increase in aircraft utilization depends on airport management, such as the opening of new airports or the addition of hours of operation.

In addition to ticket revenues, Nina explained that revenue also contributes to earnings also contributes to additional revenue or additional revenues outside the core business that reached US $ 54 million throughout 2018.

According to him, the target of additional revenue this year increased significantly compared to the achievement of 2017 which is only US $ 38 million.

Nina stressed that revenue growth from inorganic businesses is the highest in the company. The realization of additional revenue in 2017 is claimed to grow 63% compared to 2016.

He stressed that the inorganic business income of the GIAA code company is largely contributed from the business of baggage claim management and Garudamiles, additional revenue is contributed from advertising services to Garuda Shop.

Commercial Director - International Passenger & Cargo Garuda Sigit Muhartono said international airline ticket sales revenue growth will continue to grow to offset domestic routes.

Currently, revenue from international route ticket sales is still inferior to domestic routes. In addition, most of the operating routes are domestic. "Hope his future could be 50:50," he said.

Last year, the revenue ratio of domestic and international ticket sales was 76:24, or well below that expectation.

Currently, he continued, Garuda has 68 domestic routes, while international routes are 22 routes. Favorite destinations for international routes are Singapore, while high growth destinations, China and Japan.

He will review a number of international routes that have a low passenger seat (load load factor), so it can be transferred to favorite routes.

"We are still reviewing the basic performance, because the behavior of tourists will continue to shift, for example, the Chinese market is now growing big, not yet like this," he said.