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Travel tech companies earn profits from portable modems
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For travelers who wish to stay connected to public WiFi, there are some ways to keep safe. (Shutterstock/File)
T
he rise of companies that provide Wi-Fi modem rental has become apparent in the past few years, supported by the increasing demand from Indonesian holidaymakers who perceive traveling abroad as part of their lifestyle.
Tya, 26, a private employee, rented a Wi-Fi modem from PT Yelooo Integra Datanet (Passpod) for her trip to Japan.
“I only need to pay Rp 600,000 [US$4.26] for 10 days and I can share the modem with three of my friends. It was a lot cheaper than buying an international roaming package,” she told The Jakarta Post recently.
Yelooo Integra Datanet is one of the publicly listed companies that engages in the provision of Wi-Fi modem rental and attraction services. With huge market potential across Indonesia, the company is confident about accelerating the growth of its business this year.
According to data from Statistics Indonesia (BPS), from January to December 2018 the number of passengers who travel abroad using both national and foreign airlines was 17.9 million, up by 8.21 percent compared to the same period last year.
The largest number of passengers, 7.8 million people or 43.36 percent of the total number of passengers traveling abroad, went through Soekarno-Hatta International Airport in Tangerang, followed by the 6.4 million people, 35.64 percent of passengers, who went through I Gusti Ngurah Rai International Airport in Denpasar.
Hiro Wardhana, Passpod president director, said that with the rising number of people traveling overseas the company can increase its revenues amid tight competition from companies that provide similar services.
“At the end of the day, customers will pick companies that provide the best services. Passpod gives complete services and we also offer product bundling. For example, if a customer buys a Universal Studios ticket attraction, they can get a free Wi-Fi modem,” he said.
After receiving fresh funds from its initial public offering last year, Passpod was planning to expand its business to not only serve Indonesian customers, but also to serve travelers from other countries who want to visit Indonesia. This year, the company aims for revenues of Rp 52 million to Rp 53 billion.
Besides Passpod, another company, PT Mitra Galang Sejahtera (JavaMifi), said it also believes that the demand for Wi-Fi modems has grown tremendously because people are looking for a cheaper and more convenient alternative when they are traveling abroad.
Currently, JavaMifi can be used in 160 countries and the company has partnered with more than 200 local operators or providers around the world.
JavaMifi has more than 20,000 pick-up and drop-off points across Indonesia, including its flagship counter at Soekarno-Hatta's Terminal 3, with free shipping and return services for customers. Since it began operating in 2015, JavaMifi has served 1 million customers.
“In the beginning of this year, we started to expand to Japan by partnering with Og Inc., one of the local companies, to cater to the market of Japanese tourists who come to Indonesia,” Andintya Maris, JavaMifi founder, said.
Firman Raditya, the founder of Wifi Republic, said that besides capturing the sales from Indonesians traveling abroad, the company would also concentrate on targeting tourists from China.
So far, Japan and Korea have been the favorite destinations for Wifi Republic users, he said.
In order to survive competition, Wifi Republic said that it would expand its networks to more countries and make sure to provide customers with good connections, as well as hold more exhibitions to attract customers.
