Travel Agent Not Suffer Loses due to Fuel Price Increase

DENPASAR

The Chairman of Indonesia Travel Association (Asita) Bali Province, KetutArdana, said that his members until now still not suffer loses yet due to increasing fuel (BBM) price.

“There is decline of profit up to 15 percent. But after checking, they didn’t suffer any loses and still be able to run contract with foreign people without increasing its price,” he said in Denpasar.

He stated that the impact of increasing fuel price not influence the travel agent short-term contract as they could adjust the price immediately.

“What could become a problem is when facing the long-term contract since the increasing fuel price is happening in the middle, so we can’t increase the cost as we had signed the contract,” he said.

Ardana added that the short-term contract could be three or six months. The short-term contract is usually preferred by travel agent and tourists from Asia. While the long-term one is valid for one year and coming generally from European and American tourists.

“Our members don’t suffer any loses yet since there is a good anticipation. The contract made previously had calculated inflation in the following year,” he said.

There is also agreement with clause mentioning that the price could change incidentally if there is any fuel price increase, earthquake, and other natural disasters.

Generally, he said, the travel agent in Bali is in the safe zone and no one cancel their visit, although some of them have adjusted their rate.

“The problem that quite disturb us is when many taxi drivers stop in front of the hotels,” said Ardana.

He said that the other important thing is travel agent in Bali is still preferred because it always offers interesting packages and takes the tourists to see and visits new attractions.

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