STUDY ABOUT AIRLINE SERVICES USAGE IN INDONESIABY DI-MARKETING (www.di-onlinesurvey.com)

Dec, 2016

2

SCOPE OF WORK

This survey was conducted to study about airline usage and attitude of Indonesian toward airline services in Indonesia

Methodology: Online survey

Fieldwork time: 5 days (07/11/2016 to 11/11/2016)

Sample size: N = 650

Geography: Nationwide

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KEY FINDINGS

• Garuda Indonesia, Lion Air and Air Asia are top 3 well-known airline brands in Indonesia

• TV ads (61%) and web, forum ads (52%) are the best channels to gain brand awareness

• Garuda Indonesia prevails Indonesia airline service market with 32% share, followed by Lion Air with

20%

• Competitive ticket price (41%) and good service (37%) are top airline brand choice reasons

• 78% customers are satisfied and 48% are loyal with their airline brand

• Top 2 dissatisfaction points: Frequent flight delay (21%) and non-complimentary in-flight

meals/magazines (15%)

• 38% of respondents spend from $51 to $150 for each time using airline service

• 74% customers prefer Indonesia airlines

• 44% book ticket on online websites

4

KEY FINDING VIETNAM INDONESIA

Most well-known brands Vietnam Airlines, VietJet Air, Jet Star

Garuda Indonesia, Lion Air, Air Asia

Market leaders Vietnam Airlines (50%) Garuda Indonesia (32%)

Main source of brand awareness

TV ads (66%) and newspaper/magazines ads (59%)

TV ads (61%) and web, forum ads (52%)

Top brand choice criteria

Good service (51%), competitive ticket price (46%)

Competitive ticket price (41%) and good service (37%)

Top dissatisfaction point

High excess baggage fee (21%) Frequent flight delay (21%)

Key booking ticket channel

Online websites (58%) Online websites (44%)

Expenditure per each usage

53% spend $51-$150 38% spend $51-$150

VIETNAM VS. INDONESIA

5

N = 650

DEMOGRAPHIC INFORMATION

GenderAge

OccupationLiving Place

Over 35

31-35

26-30

18-25

Under 18

8%

12%

30%

39%

11%

Male

Female

42%

58%

Others

Makassar

Medan

Surabaya

Bodetabek

Jakarta

37%

3%

4%

13%

20%

23%

Others

Job seeker/Retired

Engineer/Doctor/Teacher

Factory Worker

Student

Self-employed

Housewife

Officer

1%

5%

8%

9%

13%

19%

20%

24%

6

Others

EVA Air

Kalstar Aviation

Cathay Pacific

Jetstar

Korean Air

Tiger Air

Emirates

Singapore Airlines

Batik Air

Citilink

Sriwijaya Air

Air Asia

Lion Air

Garuda Indonesia

1%

7%

9%

16%

16%

17%

17%

33%

41%

54%

64%

65%

74%

75%

81%

Total

GARUDA INDONESIA, LION AIR AND AIR ASIA ARE TOP 3 WELL-KNOWN AIRLINE BRANDS IN INDONESIA

Do you know any of these brands listed below? (By age)

N = 650 N = 70 N = 255 N = 195 N = 75

0%

3%

9%

3%

9%

6%

6%

19%

20%

29%

40%

27%

44%

47%

47%

Under 18

2%

7%

11%

11%

18%

20%

18%

31%

42%

56%

65%

68%

76%

78%

83%

18-25

2%

8%

9%

14%

17%

16%

19%

38%

41%

57%

68%

72%

80%

80%

85%

26-30

0%

7%

5%

23%

21%

19%

23%

36%

49%

59%

71%

68%

80%

80%

87%

31-35

0%

13%

11%

47%

11%

16%

13%

40%

53%

60%

64%

67%

69%

73%

93%

Over 35

N = 55

7

Others

Through SMS/Email advertising

Through blog, facebook … of famous people

I see the appplications of these brands on App stores (Google play,..)

Friends/relatives' suggestion

Newspaper, magazines ads

Facebook ads

Out of home ads

Web, forum ads

TV ads

1%

20%

25%

28%

33%

33%

35%

35%

52%

61%

Total

TV ADS AND WEB, FORUM ADS ARE THE BEST CHANNELS TO GAIN BRAND AWARENESS

How do you know these brands? (By age)

0%

20%

24%

21%

16%

20%

29%

31%

36%

34%

Under 18

1%

20%

26%

30%

35%

36%

38%

35%

57%

64%

18-25

4%

16%

17%

21%

45%

33%

24%

37%

48%

55%

31-35

0%

20%

24%

27%

36%

35%

33%

47%

44%

64%

Over 35

0%

22%

28%

31%

30%

33%

38%

32%

56%

68%

26-30

N = 650 N = 70 N = 255 N = 195 N = 75 N = 55

8

66% OF RESPONDENTS HAVE USED AIRLINES SERVICES IN PAST 6 MONTHS

Have you used airline services in the last 6 months? (By age)

Total Under 18 18-25 26-30 31-35 Over 350%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

34% 33%40%

25%35% 33%

66% 67%60%

75%65% 67%

Yes

No

N = 650 N = 70 N = 255 N = 195 N = 75 N = 55

9

GARUDA INDONESIA PREVAILS INDONESIA AIRLINE SERVICE MARKETWITH 32% SHARE, FOLLOWED BY LION AIR WITH 20%

Have you use airline services in the last 6 months? If you chose yes, which brand do you use the most? (By age)

N = 432 N = 47 N = 153 N = 146 N = 49

Others

Jetstar

Cathay Pacific

EVA Air

Singapore Airlines

Tiger Air

Kalstar Aviation

Emirates

Korean Air

Batik Air

Sriwijaya Air

Citilink

Air Asia

Lion Air

Garuda Indonesia

0%

1%

1%

1%

1%

1%

1%

2%

2%

4%

7%

9%

19%

20%

32%

Total

0%

2%

4%

4%

2%

2%

9%

4%

2%

11%

6%

6%

11%

17%

19%

Under 18

0%

1%

0%

0%

2%

1%

1%

1%

1%

4%

7%

14%

25%

16%

29%

18-25

1%

1%

1%

1%

0%

1%

0%

2%

3%

3%

5%

7%

16%

26%

34%

26-30

0%

0%

2%

2%

0%

0%

0%

0%

0%

2%

10%

6%

20%

22%

35%

31-35

0%

0%

0%

0%

0%

0%

0%

0%

0%

5%

8%

8%

11%

16%

51%

Over 35

N = 37

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OVERALL, COMPETITIVE TICKER PRICE AND GOOD SERVICE ARE THE MAIN REASONS FOR CHOOSING AN AIRLINE BRAND

Why do you use the services of this brand? (By brand)

Garuda Indonesia = Good service + reputation of the airline brandLion Air/Air Asia = Competitive ticket price + frequent promotion/ discount programs

Citilink = Competitive ticket price + suggestion from friends/relatives

Others

Wanna prove myself

Allow to bring much luggages

Wanna experience new services

Save time/ short journey

Depart/ Arrive in beautiful/ famous airports

Rare delays

Passengers insurance

Have many outlet ticket

Have many flights within a day

Use modern planes with good quality

Have online booking system

Reliable and famous

Friends/relatives suggest me trying

Frequent promotion/ discount programs

Good service

Competitive ticket price

1%

9%

10%

11%

17%

17%

17%

18%

21%

22%

24%

28%

29%

29%

30%

37%

41%

Total

1%

12%

12%

14%

25%

26%

30%

36%

28%

25%

41%

30%

43%

33%

18%

59%

24%

Garuda Indonesia

0%

5%

13%

8%

14%

5%

3%

10%

18%

18%

14%

24%

20%

25%

37%

21%

60%

Lion Air

1%

11%

10%

14%

21%

18%

15%

18%

26%

24%

21%

34%

34%

35%

55%

29%

56%

Air Asia

0%

5%

8%

13%

10%

20%

25%

3%

23%

23%

23%

35%

23%

40%

38%

33%

68%

Citilink

N = 432 N = 138 N = 87 N = 80 N = 40

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78% ARE SATISFIED WITH THEIR AIRLINE BRAND

Overal, how do you feel about the service of that brand? (By brand)

N = 432 N = 138 N = 80 N = 40

Garuda Indonesia owns highest level of consumer satisfaction with 50%

Total Garuda Indonesia

Air Asia Citilink Lion Air0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1% 1% 1%2% 3% 3% 3%

19%7% 18%

25%

32%

44%

39%

51%

57%

52%

34%

50%

31%

15% 11%

Totally satisfied

Satisfied

Neutral

Dissatisfied

Totally dissatis-fied

N = 87

12

48% LOYALTY WITH THEIR CURRENT AIRLINE BRANDBUT 52% ARE ALSO BUYING OTHER BRANDS

What is your usage intention toward your current airline brand? (By brand)

Total Garuda Indonesia

Air Asia Lion Air Citilink0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

3% 3%10%

3%

31%30%

38% 20%

48%

18%

10%

18% 36%

25%23%

35%

21%14%

10%

25% 25% 21% 21%15% I will use this airline

brand only

I will prioritize to use this airline brand

I will use this airline brand in parallel with other brands

I will continue use this airline brand , but I will try other brands in future

I will switch to other airline brands

N = 432 N = 138 N = 80 N = 87 N = 40

Garuda Indonesia own the highest ratio of loyal consumer (25%)

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81% ARE WILLING TO RECOMMEND THEIR CURRENT AIRLINE BRAND TO OTHERS

What's your ability to recommend your current airline brand to other? (By brand)

Total Garuda Indonesia

Air Asia Citilink Lion Air0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1% 1% 1% 2%3%

11%15%

9%18%

25%

20%

38%

38%

39%

40%

38%

43%52%

43%35%

29% Will recommend def-initely

Will recommend

Either recommend or not

Will not recommend

Will not recommend definitely

N = 432 N = 138 N = 80 N = 40 N = 87

Garuda Indonesia (52%) has the highest top box recommendation level compared to others

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FREQUENT FLIGHT DELAYS AND NON-COMPLIMENTARY IN-FLIGHT MEALS/MAGAZINES ARE THE TOP DISSATISFIED REASONSGaruda Indonesia = High charge of overweight luggage + not allow to bring much luggages

Lion Air/Air Asia/Citilink = Frequent flight delay + non-complimentary in-flight meals/magazines

Is there anything make you feel unhappy about this brand? (By brand)

Nothing makes me feel unhappy

Others

Do NOT have online booking system

No passengers insurance

Payment method is complicated

Old-fashion, poor quality and small planes

Staffs are NOT friendly, professional with bad serving attitude

The route is often lengthen, waste my time

Unreasonable and unclear price

Few flights within a day

Not allow to bring much luggages

Charge overweight luggage expensively

Do NOT serve FREE food and magazines

Frequent delays

26%

0%

4%

6%

6%

6%

7%

8%

8%

9%

10%

12%

15%

21%

Total

36%

1%

4%

4%

6%

4%

8%

5%

12%

9%

12%

17%

5%

6%

Garuda Indonesia

14%

0%

3%

6%

7%

10%

5%

7%

1%

9%

8%

6%

21%

52%

Lion Air

39%

0%

6%

13%

6%

5%

9%

6%

6%

13%

10%

9%

18%

25%

Air Asia

30%

3%

3%

3%

3%

0%

5%

10%

5%

10%

8%

13%

23%

20%

Citilink

N = 432 N = 138 N = 87 N = 80 N = 40

15

38% OF RESPONDENTS SPEND FROM $51 TO $150 FOR EACH TIME USING AIRLINE SERVICE

Over a half of Lion Air/Citilink’s customers spend from $51 to $150How much do you often pay each time using this service? (By age)

N = 432 N = 138 N = 87 N = 80Total Under 18 18-25 26-30 31-35 Over 351% 1% 1% 2%2% 4% 1% 3% 5%9%

2%12% 8%

16%5%

19%

9%

20% 25% 12%

16%

38%

13%

41% 41%45%

41%

19%

9%

20% 21% 20%

24%

11%

64%

5% 3% 4% 8%

Total Garuda Indonesia

Lion Air Air Asia Citilink0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1% 1% 3%2% 4%3%

3%9%

17%

1%

16%

19%

28%

17%

19%

10%

38%

30%

52%

35%

53%

19%

12%25% 21% 28%

11% 7% 5% 6% 5%

Under $25

$25- $50

$51- $150

$151 - $250

$251 - $500

$501 - $1000

Over $1000

N = 40 N = 432 N = 47 N = 153 N = 146 N = 49 N = 37

WeightedAverage

Expenditure$145 $205 $101 $161 $128 $145 $81 $152 $154 $160 $144

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74% CUSTOMERS PREFER INDONESIA AIRLINES

Which airline's country of origin do you prefer? (By age)

Overall, older age groups tend to be more interested in International airlines

Total Under 18 18-25 26-30 31-35 Over 350%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

6% 4% 5% 3%10%

19%

20%13%

18% 23%

20%

27%

74%83%

78% 74%69%

54%

Indonesia air-lines

International airlines

I don't care/I don't know

N = 432 N = 47 N = 153 N = 146 N = 49 N = 37

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Others

Midle East

Africa ( Egypt, South Africa,..)

Southern America ( Brazil, Chile,…)

Irian island

Europe ( France, Italia, Spain,…)

Northern America( USA, Canada,…)

Sulawesi island

Kalimantan island

South East Asia (Vietnam, Laos,..)

Sumatera island

Bali, NTB, NTT, Ambon

Java island

0%

1%

3%

3%

4%

5%

6%

8%

11%

11%

19%

28%

35%

Total

JAVA ISLAND IS THE DESIREST DESTINATION OF INDONESIAN (35%)

Where do you usually travel to? (By age)

0%

1%

4%

3%

5%

6%

5%

8%

12%

10%

23%

31%

41%

18-25

1%

1%

1%

2%

3%

4%

3%

10%

12%

11%

23%

34%

36%

26-30

2%

0%

4%

0%

4%

6%

6%

10%

12%

16%

18%

20%

43%

31-35

0%

0%

0%

5%

0%

5%

8%

5%

11%

8%

14%

27%

35%

Over 35

N = 432 N = 153 N = 146 N = 49 N = 37

18

44% BOOK TICKET ON ONLINE WEBSITES

How do you buy your air ticket? (By age)

Others

I have my friends/ family/ relatives book for me

I buy directly ar outlet ticket

I book indirectly through air ticket service

I book ticket on airlines official online website

I book ticket on online websites (Traveloka, Ticket.com, etc)

1%

15%

25%

26%

29%

44%

Total

0%

23%

11%

26%

17%

28%

Under 18

0%

12%

28%

23%

27%

49%

26-30

6%

18%

20%

24%

29%

39%

31-35

0%

22%

16%

27%

35%

32%

Over 35

1%

14%

29%

29%

34%

50%

18-25

N = 432 N = 47 N = 153 N = 146 N = 49 N = 37

Over 35 group prefer book ticket on airlines official online website to other methods

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CONTACT US

• Japan & Taiwan:o Address: 3 Chome-2-6 Kasumigaseki, Chiyoda, Tokyo 100-0013, Japano Contact person: Mr. Hideyuki Kato (CEO)o Email:  hideyuki.kato@di-mktg.como Contact number: +81 3-5532-3200

• Vietnam: o Address: 9-15, Vincom center, 45A Ly Tu Trong, Ben Nghe ward, District 1, Ho Chi Minh City, Vietnamo Contact person: Mr. Ho Hai Dang (Manager - DI Marketing)o Email:  dang.h@di-mktg.como Contact number: +84 902-73-9944

• Thailand o Address: 246 Time Square Bld., 10th Fl., Room 10/04, Sukhumvit 12-14 Rd. Klongtoey,

Bangkok 10110, Thailando Contact person: Ms. Pimparima Piriyametha (Business Analyst - DI Marketing)o Email:  pimparima.p@di-mktg.como Contact number: +66 96 245 3656

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CONTACT US

• Indonesia:

o Address: Jalan Prof Dr Satrio Kav 18, 45th floor AXA Tower, Jakarta 12940, Indonesiao Contact person: Mr. Hendry Pratama (Manager - DI Marketing)o Email: hendry.p@di-mktg.como Contact number: +65 822 1345 2555 | +62 21 3005 3541

• India:

o Address: 10 Anson Road, #14-06, International Plaza, Singapore 079903o Contact person: Mr. Sujit Kunte (Regional representative)o Email:  kunte.sujit@dreamincubator.com.sgo Contact number: +65 9127 7654

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