The Rise of the Independent Value Driven Travelers

The Rise of the Independent Value Driven Travelers

Putu Chris Susanto

Lecturer at Dhyana Pura University and a self-professed budget traveler

Let’s face it. Bali is no longer an exclusive travel destination. The island has a bit of everything for everybody, from budget to luxury—for travelers ranging from high school tour groups to high flying socialites. Bali is increasingly accessible, attainable, and affordable for both domestic and international travelers. We can no longer assume that travelers have bottomless pockets, that their trip to Bali is backed with an unlimited budget to splurge. 

People are increasingly choosing to spend their hard earned money traveling to and within Bali because, given the price tag and what is being offered, Bali is their best option. While this is not necessarily a bad thing, industry practitioners from market vendors to hoteliers have to adjust their strategies to attain a bigger portion of the travelers’ pockets. First, they need to realize that there is a large market potential for independent value driven travelers in Bali. Then, they need to be enlightened on the characteristics of this market. 

Independent travelers can be defined as tourists who organize their own trips, without buying packaged holidays. Independent travelers are usually very aware of where they are going to and also enjoy planning for their experiences. Value driven travelers are tourists who are very aware of their resource restrictions, including their budget and time with which they still want to get the best out of their travel experience. Thus independent value-driven travelers (IVT) refer to tourists who, seeking to maximize their travel experience with their limited resources without being a part of an organized group, do their own planning a la carte. 

The IVT segment cannot be easily narrowed down by their demographic characteristics as this group transcends age groups, level of education, country of origin, and other demographic characteristics. However, they tend to fly to Bali from points of embarkation within 6 flight hours or less—anything more would require them to stay longer to make it worth their time and money flying into a destination. Or if they reach Bali by road, they tend to come from areas within 24-hour drive or nearer. The more interesting phenomena to observe are the psychographic/behavioral traits of the IVT segments. Below are seven such characteristics. 

First. IVTs try to cover as much ground as possible in as little time as possible. As opposed to the true backpackers who spend many days even weeks exploring and sharing experiences with fellow travelers, value-driven travelers only have a few days to travel. IVT’s length of stay is as limited as their budget, usually fewer than 5 days with an emphasis of visiting popular or “happening” places and sharing their experiences with their friends and followers on social media. They tend to do an extensive pre-arrival research online and through word of mouth references. So if you want your business to be included in this list of popular venues, you better build a great online presence and a good reputation, including paying attention to what people write on online travel review sites.

Second. There’s no room for error. Since IVT’s have limited time but a lot of grounds to cover, staying fit is essential. There’s no time for getting sick while on vacation. When you cater to them, be sure that the perceived authentic experience you provide does not make them debilitated from continuing on with their next planned activities. Do not take too much of their time—again, time is money and both are limited. Additionally, traveling for them can be a stressful experience, especially for the person in charge of organizing the activities. Any small service to relieve stress is usually welcomed. At times, travelers in this segment would seem difficult. Understandably, arranging the trip alone can be a stressful exercise for them. You will only make it worse by reciprocating and being difficult to get back at them. Remember, Bali is known for its sincerity which makes people come again and again. 

Third. There’s some flexibility, but not much. IVTs usually have a clear idea of the places to see or be seen. This usually involves a lot of sightseeing and activities that require the weather, traffic, ceremony schedules, and business hours to cooperate. There’s little room to breathe, let alone be flexible with unforeseen events. The show must go on; there are no contingency plans. If there’s something unforeseen, IVTs tend to trust their smartphones to quickly research plan B on the spot—usually done wherever free wifi is available. If you’re a good independent tour operator, it would be to your benefit to be able to think on your feet on which activities would be good alternatives if the main plans fail.

Fourth. There’s usually one place, or event, as the highlight of the trip. If these travelers go to Singapore, for example, a trip to Universal Studios might be that highlight. In Bali, it is much more difficult to pinpoint that one place or experience that complete the sentence, “You haven’t really seen Bali until you’ve been to …” But typically, this special place or event involves dinner at a popular restaurant or sunset at a very happening beach club. If you work in these popular establishments the worst thing to do is dismiss people based on their appearance or the language they speak. Some IVTs may be frugal—they have to be in order to optimize their vacation budget. But no one wants to be regarded as cheap. You never know; your place could be the highlight of their trip that they’ve saved up for and look forward to. If you don’t treat them well because of a preconceived notion regarding the amount of money they’ll spend or the tip they’ll leave, you may ruin the one thing that’s the highlight of their trip to Bali. 

Fifth. They may sacrifice on a few things, but some things are non-negotiable. Some hoteliers wouldn’t like this about IVTs. The one thing that they would sacrifice to get the most out of their travel budget, second only to sacrificing comfort for low air fares, is the quality their accommodation. This means that as long as they have a roof over their heads and an acceptable bed to rest, IVTs tend to go cheap when it comes to hotel rooms. Guesthouses, homestays, or hotels in small alleys rejoice. As long as you’re reasonable, you’d be considered for accommodation. IVTs do not generally see their choice of lodging as the top priority on their trip; the experiences and the places they see are. For every dollar they can save on renting a room, they can spend more on the non-negotiable must see and must do. They’re more likely to post pictures of their excursions and the meals they have than to post a “check in” at the hotel on social media anyway. Thus, so-so hotel is OK, but picture worthy experiences are a must!

Sixth. Popularity and quality come first, authenticity second. IVTs want to show off to their friends and relatives back home that they can afford a good quality Bali vacation—this is why they are willing to sacrifice on some things. They may stay in a modest hotel, but they want to buy good, well-known gifts for people back home. Whether the experiences and gifts are truly authentic is secondary; the first concern is whether they are popular. Ask the people who diligently stand in line to purchase a brand of Bali pie that’s so popular with Indonesians outside of Bali. Then ask a local Balinese about it. Admittedly the quality is good, but it is about as authentic as French fries to America. Regardless, people buy them up. True authenticity, therefore, is second to popularity and quality so long as there’s the perception of something being authentically Bali.

Seventh. What happens in Bali stays on Facebook. IVTs want to show off without a high price tag, but whatever they do or consume has to be picture-worthy and indicate that they’re having a great time splurging. They take their entire social media networks and followers on vacation with them. Even those who are usually dormant from social media activities would come alive from their hibernation from Facebook, Twitter, or Path during their trip to Bali. So, if you operate a restaurant you have to make sure that any food you send out is tasty and picture worthy because, chances are, it will end up on social media. This is a great way to build notoriety. These travelers will make their followers envious and want to come to Bali just to show that they, too, can have the same Bali experience as their friends. Any positive or negative experience could end up online. So industry practitioners should pay attention to every moment of truth, every point of interaction. But don’t be discouraged, IVTs will not post anything that counters their online persona’s claim that they are having a great time in Bali.

At the end, it is still difficult to identify this segment by observable demographics. Still, this article is hoped to bring awareness about the rise of the independent value driven travelers in Bali. Industry practitioners should not ignore this market segment, but rather adjust their offerings to help all travelers have a great, genuine Bali experience that is known the world over.