Indonesian Political, Business & Finance News

Amphuri: Umrah Ticket Price Increase Requires a Fair Policy Response

| Source: ANTARA_ID Translated from Indonesian | Regulation
Amphuri: Umrah Ticket Price Increase Requires a Fair Policy Response
Image: ANTARA_ID

Jakarta (ANTARA) - The Indonesian Association of Hajj and Umrah Organisers (Amphuri) assesses that the surge in umrah flight ticket prices due to escalating geopolitical tensions in the Middle East has placed serious pressure on the umrah ecosystem, necessitating a response through equitable policies.

“The drastic spike in ticket prices not only disrupts the stability of umrah organisers’ businesses but also hampers the public’s ability to perform worship in the Holy Land,” stated Ulul Albab, an academic and public policy analyst as well as Chairman of the Research and Development Division of Amphuri’s Central Board, in Jakarta on Friday.

Amphuri understands that airlines are facing increased operational costs due to route changes, higher insurance premiums, regional security risks, and limitations on flight slots and seats.

However, on the other hand, all these increases cannot be entirely passed on to consumers, in this case, umrah travel agencies and pilgrims.

According to him, umrah travel agencies are currently in a difficult position because it is impossible to raise prices extremely to maintain market continuity and pilgrim trust. On the other hand, organisers also lack the capacity to absorb large ticket price increases continuously.

As a result of this situation, he said, many travel agencies are experiencing heavy margin pressures.

“The impact ultimately returns to the pilgrims. Many prospective pilgrims are middle-class people who have been saving for years to be able to depart for umrah. Sudden cost increases can delay departures or even cause them to fail,” he said.

Ulul Albab encourages the government to take on a role not only as an administrative regulator but also as a protector of the umrah service ecosystem for the Muslim community.

In addition, airlines are also expected to view umrah flights not merely as commercial routes but as part of social-religious services for Indonesian Muslims.

In that context, Amphuri views the need for concrete steps to maintain the health of the national umrah industry without burdening the public.

He mentioned that the government needs to facilitate a special forum between umrah associations and airlines to discuss ticket price stabilisation during periods of geopolitical crisis.

He also proposed opening up long-term cooperation between associations and airlines through annual contracts, collective block seats, or tiered pricing schemes to reduce price volatility.

On the other hand, the government is seen as needing to expand access and alternatives for umrah flights through aviation diplomacy with various international airlines to make the market price structure healthier.

In addition, according to him, certain incentives for umrah flights during crises should also be considered, such as eased flight slots, airport cost efficiencies, and regulatory support.

“This crisis should truly be a collective test. Airlines need business continuity. Travel agencies need operational certainty. Pilgrims need protection. And the government needs stability in serving the community’s worship,” he said.

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