Read The Times Australia

Daily Bulletin

Bali's Mt Agung eruption shows how businesses should and shouldn't react to uncontrollable events

  • Written by: Russel PJ Kingshott, Senior Lecturer in Retailing, School of Marketing, Curtin Business School, Curtin University

There’s nothing like an erupting volcano to reveal who does and doesn’t have their crisis management plans sorted out.

Sudden uncontrollable events are an inevitable part of any tourism operation. Businesses worth their salt should at least in principle have the capacity to remedy situations that go wrong, as part of their modus operandi.

Read more: Here’s how to keep up with the latest on Mt Agung, the Bali volcano

Conventional marketing wisdom says that when organisations react properly to uncontrollable events, it has positive consequences for their overall relationship with their customers. But for this to be effective, those affected customers need to have a quick response from businesses or it could simply be counterproductive.

The closure of Bali’s Ngurah Rai Airport left many passengers stranded. And while the volcano and its ash cloud are beyond airlines’ control, how they respond to the needs of stranded passengers is completely within their remit.

Tourism businesses should start by communicating precisely what they are going to do about the situation to the customer - quickly and clearly, to reduce uncertainty and avoid confusion. This needs to be backed up by tangible actions, namely doing the specific things promised and making amends with the customer. Fail to do this, and businesses run the risk of further negative consequences.

Speaking from recent personal experience during a short vacation in Bali, Jetstar Australia quickly communicated that relief flights departing from the island would come into operation immediately (weather permitting). They also made it clear to any inbound Bali passengers that there would be no flights bringing them to the island unless longer-term weather conditions were deemed favourable.

Specific Bali departure flight details, along with those cancelled, were regularly updated via the business’ online and social media platforms. Customers were also able to interact directly with Jetstar through their call centre and online chat forums. This particular activity was also replicated by other Australian carriers – Virgin and Qantas – that fly to the island, so generally customers were well informed about the situation.

Without this kind of communication, customers quickly become confused, uncertain, and even panicked at the prospect of being trapped on the island. Volcanic eruption can impact air traffic patterns and this is more disconcerting to both customers and Bali tourism businesses, as the potential for a major eruption increases.

Providing timely information about what action customers need to take is paramount. For example, hotels need to communicate early with existing customers about the possibility of them extending their stay so as to provide them with the first option of rooms.

While Bali businesses did not appear to be very proactive on this front, Indonesia’s tourism minister requested hotels provide discounts to stranded passengers and instructed discount carriers not to take advantage of the situation through cancellation and rescheduling fees. The minister also stipulated an automatic extension to expired visas.

Read more: Bali tourism and the Mt Agung volcano: quick dollars or long term reputation

But there are also pitfalls associated with any response to an unexpected event because of other businesses in the marketplace. For example one business that deals badly with the event could have a negative impact on a customer’s overall experience irrespective of other businesses’ recovery efforts.

For example, customers may have booked and paid for additional hotel accommodation in anticipation of a lengthy delay, but in the interim received notice they are scheduled on an earlier relief flight because conditions were now favourable. Due to various hotel non-refund policies, and that of online accommodation wholesalers, this could result in an unpredictable loss to the customer with the potential to reflect negatively on their experiences with both the hotel and the airline.

It’s also crucial for businesses to inform customers about the specific source of any failure, because customer perceptions of who is responsible for the failure plays a central role in their future actions.

In the case of the eruption of Mt Agung, airlines flying to Bali constantly referenced the weather conditions and the closure of the airport as being directly responsible for their decision not to fly. At all times the underlying key message of passenger safety had another purpose – providing an attribution for the service failure.

Even though businesses should take the lead, they also need customers to do their bit too. At the very least, customers need to ensure that their holiday contact details are current as well as have diligence in monitoring, where possible, mobiles and emails to help with the recovery effort. Travellers should also be aware that there are many government sources of information available designed specifically to inform about what to do in situations like Bali.

Overall, this Bali event provides us an insight into what businesses should and shouldn’t do when it comes to responding to these unexpected hiccups.

Authors: Russel PJ Kingshott, Senior Lecturer in Retailing, School of Marketing, Curtin Business School, Curtin University

Read more http://theconversation.com/balis-mt-agung-eruption-shows-how-businesses-should-and-shouldnt-react-to-uncontrollable-events-88629

Business News

Inside the Icon: The BridgeMuseum Officially Opens at the Sydney Harbour Bridge

A bold new way to experience one of Australia’s most recognisable landmarks has arrived, with BridgeClimb Sydney officially opening the all-new BridgeMuseum.  Located inside the Sydney Harbour Brid...

Daily Bulletin - avatar Daily Bulletin

Is Your Brand Showing Up in AI Search? Most Melbourne Brands Aren't.

The New Front Door Nobody Told You About Something changed. Quietly. Without a press release. The way buyers find businesses in Australia has been rewired. Not replaced, rewired. Google isn't dead...

Daily Bulletin - avatar Daily Bulletin

How Australian Businesses Can Measure SEO ROI

SEO can feel vague when you are staring at a dashboard full of numbers that do not clearly connect to revenue. The key is to measure the right signals in the right order, then tie them back to outcome...

Daily Bulletin - avatar Daily Bulletin

How Commercial Roller Shutters Improve Site Security Without Slowing Operations

Security upgrades can be frustrating when they make everyday work harder. A door that takes too long to open, creates bottlenecks at shift change, or fails at the worst time can turn “better protectio...

Daily Bulletin - avatar Daily Bulletin

Why a Document Destruction Service Still Matters for Modern Businesses

Businesses generate large volumes of information every day, from staff records and contracts to invoices, reports and customer files. While attention often focuses on how documents are stored, the way...

Daily Bulletin - avatar Daily Bulletin

Bicycle Rack Safety and Space-Smart Storage

Bike storage problems usually show up as small annoyances first: tangled handlebars, scratched frames, and bikes that topple when you pull one out. Over time, those issues become safety risks, especia...

Daily Bulletin - avatar Daily Bulletin

How to Tell if a Childcare Centre Is a Good Fit for Your Child

Choosing childcare can feel like you’re making a huge decision with limited information. Tours are short, centres are often on their best behaviour, and your child might act differently in a new space...

Daily Bulletin - avatar Daily Bulletin

Car Import Timeline: What Usually Happens at Each Stage

Importing a car into Australia can feel confusing because multiple agencies and checkpoints are involved, and the timeline is shaped as much by paperwork quality as it is by shipping speed. The most u...

Daily Bulletin - avatar Daily Bulletin

Portable Toilet Hygiene Standards Explained: Clean vs Sanitised vs Disinfected

In portable toilet servicing, the words clean, sanitised, and disinfected often get used as if they mean the same thing. They don’t. And that difference matters because a unit can look tidy and still ...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Gold Migration Lawyers in Liquidation: How the Closure Affects Your ART Appeal

If your appeal was with Gold Migration Lawyers, a recent change to how the Tribunal decides cases ...

The pressure cooker: life in urban Australia in 2026

Australian cities have always been demanding. Long commutes, rising housing costs, busy schedules a...

What Actually Makes a Good Criminal Lawyer in Melbourne

Most people only think about this question once. That is usually too late. Most people charged wi...

Why Working With A Chatswood Tutor Can Improve Academic Performance

Academic expectations continue increasing for students across primary school, high school, and senio...

Is It Worth Getting Solar Panels in Melbourne?

The real question is not whether solar works in Melbourne. It works. The question is what it is co...

How A Diploma Of Project Management Builds Practical Skills For Modern Work Environments

Developing the ability to plan, execute, and deliver outcomes efficiently is a key requirement in to...

How to Choose the Right Football for Every Level

Choosing a football may seem straightforward, but the right option depends on who will be using it a...

What to Ask a Wedding Photographer Before You Book

Booking a wedding photographer can feel deceptively simple: you like the photos, you like the vibe...

Why Stress Relief For Dogs Is Essential For Emotional Balance And Long-Term Wellbeing

Managing emotional health is just as important as physical care when it comes to pets, which is why ...