In 2017, the then-owner of Expedition Bali approached Western Influences in distress. The eruption of Mount Agung caused an international media frenzy and subsequent panic amongst tourists, which was devastating to the Balinese economy. Expedition Bali had just experienced 100% cancellation of all its tours to neighbouring Mount Batur for the next two months and could not afford to pay its bills. The owner was considering closing the doors to the business and laying off the staff. He could not see a way forward.
Western Influences often receives distress calls from potential clients. We would prefer they engaged us before things got critical so that we could assist in risk mitigation and planning for contingencies. However, we are adept at finding ways forward in the most difficult of circumstances.
Here is what Western Influences did for Expedition Bali over the next six months:
Recruit Advocates
The international media’s over-dramatization and irresponsible reporting of the eruption of Mount Agung had the most damaging impact on Expedition Bali business, and this needed to be stopped. Western Influences set off a campaign to counter the negative mainstream media and shift the conversations about Mount Agung and Bali as a whole.
The first step was preparing a newsletter to distinguish fact from fiction – lava was not flowing down the streets of Kuta; tourists were not fleeing for the lives; outdoor activities across Bali were not cancelled. Western Influences tracked down the official sources of scientific information about Mount Agung.
Cut Unnecessary Expenses
When business is great, expenses tend to be less controlled and “good” ideas are implemented without proper assessment of their opportunity cost. For example, Expedition Bali spent resources on “nice to have” things like caps and key rings, t-shirts and stubby coolers, glossy brochures and postcards. No part of this spend generated a return on investment.
If it didn’t make the company money, Western Influences cut it.
Targeted Sales Promotion
As a small business, Expedition Bali did not have the resources for a sales team that could routinely visit the many destination management companies, travel desks and information centres around Bali. However, the tour company relied on those channels to bring in the majority of its customers.
Western Influences International analysed the sales data to determine the value of each channel; then, scheduled meetings with the primary decision makers of the top ten. The conversations focused on the necessity of partnership between Expedition Bali and the leading channels. That is: participants acknowledged that they need each other. Strategies were devised to deliver to the other what they need for success, not what was assumed to be needed.
Increase Social Media Marketing
At the time of engaging Western Influences International to resuscitate the company, Expedition Bali had somewhat of a presence on Facebook, an unused Instagram account and an out-of-date You Tube channel, none of which generated sales. The website was untidy and rarely generated sales either. The statistical analysis of each social media channel showed extremely low engagement by potential customers, and that had been a long-term trend. The social media and the website need an overhaul, and fast.
Expedition Bali contracted Western Influences International to take over the management of all its social media channels. In the next few months, both the Facebook and Instagram accounts went from ghostly silence to regular comments, shares and messages from potential customers. Today, the social media channels and the website generate a healthy proportion of sales.
Modify the Terminology
Expedition Bali had a reputation for delivering two tours only – Sunrise Trekking Tour and Volcano Explorer Tour. Both tours are appealing and interesting. However, the brochures and other literature, including the contracts with destination management companies, promoted the use of ‘jeeps.’ In fact, Expedition Bali used a custom-built four-wheel drive that provided greater comfort and safety for guests.
Western Influences International redesigned all of the printed material about Expedition Bali to reflect the attribute that distinguished the company from its competition – the custom-built four-wheel drive. This required follow up conversations with the destination management companies to ensure they understood the distinction, which, in turn, translated to increased sales of a niche product.
Develop New Tours
Western Influences International advised Expedition Bali that offering two tours was insufficient to compete in the current market. Further, the rapidly changing demographics of the international tourist called for a broader suite of tours to attract the many different types of travellers – from solo adventurers to young families, honeymooners to medium-sized groups.
The suite of tours needed to appeal to different tastes, similar to any menu. Variables to be considered included:
- levels of fitness and agility – fit and strong, elderly and less stable, children with shorter legs, pregnant women, etc.
- group composition – single, family, couple, friends, social club, etc.
- landscape – lake views, mountain views, ocean views, rice terrace views, jungle views, etc.
- time of day – pre-dawn, morning, afternoon, overnight, etc.
- level of adventure – self-drive, sit back and relax, hardcore trekking, etc.
- duration – half day, full day, overnight, multiple days
- information content – entertainment, educational, scientific, etc.
- price range – affordable for families, backpacker rates, competitive for agents to re-sell
- prestige – standard packages, exclusive options, upgrades, etc.
Western Influences International designed ten new tours for Expedition Bali, which are being implemented throughout 2018.
Diversify Outside Bali
With the eruption of Mount Agung, tourist numbers dwindled in Bali. Inaccurate assumptions were made about the safety of neighbouring Mount Batur and international travel advice agencies warned people to stay away from Bali. Airlines actively encouraged passengers to change their upcoming flights to alternative destinations to avoid the risk of flight cancellation and / or airport closures. Australia’s Foreign Affairs Minister even announced that all outdoor activities in Bali were closed.
Western Influences International explored the possibility of expanding Expedition Bali tours into other Indonesian islands. Kawah Ijen in Java, Mount Bromo in Java and Mount Rinjani in Lombok are three popular tour destinations accessible to Bali. Each fit with the Expedition Bali volcano adventures theme, so planning began with Java as the first stage of implementation in 2018. Lombok would be implemented in 2019.
Further consideration needs to be made in regard to the unpredictable nature of volcanos and the fact that the whole of Indonesia sits inside the volcanic “Ring of Fire.” Any business working with nature that is prone to sudden change is at risk of being shut out when danger is present. More mitigation strategies need to be designed and implemented.
Outcome of Strategies Implemented
In under six months, Expedition Bali shifted from the brink of closure to the highest sales and customer participation in the history of the then owner’s reign in the Company; and, it is continuing to grow at a steady pace.
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